Software supplier Delcam turned in a fall in full-year pretax profits yesterday due to the weak dollar - even as sales rose 11 per cent to reach record levels.
Delcam chairman Peter Miles said the Birmingham group at Small Heath Business Park had an encouraging start to the current year. But he warned it would not be immune to any global downturn in economic activity.
But the company continued to view prospects for the business over the long term "very positively".
For the year to December 31, pretax profit dipped to £2.15 million against £2.79 million last year.
Sales rose to £29.7 million compared to £26.7 million even as the weak dollar impacted profit by more than £500,000.
The company also proposed a final dividend of four pence per share.
That announcement lifted the total dividend for the year to 5.25 pence against five pence a year ago. European software sales had performed particularly well and the emerging economies of China, India, Russia and South America had achieved good growth.
Maintenance income from licence fee renewals was up by ten per cent to £8.1 million from £7.4 million which represented 27 per cent of group revenues.
Continued investment in research and development was £7.8 million, up from £7.3 million. Mr Miles said the business had performed robustly.
"With more than half of Delcam's global sales undertaken in the US, results are especially creditable.
"You have to consider the background of US dollar weakness, which should be expected to adversely affect sales and profitability." A £6.1 million investment in Delcam by Renishaw, a leading UK measurements company, completed in April last year meant the two companies were now working together on new software initiatives.
Shares closed down 27.5p at 275p.