Birmingham software developer Delcam has revealed a big jump in profits after seeing first half sales rise by 12 per cent.
The company, which has supplied manufacturers in 80 countries, saw sales rise to £18.1 million in the first six months of the year, while pre-tax profits rose to £1.1 million – up £790,000 on the first half of last year.
The company, which also won a third Queen’s Award for Enterprise during the period, spent £5 million on research and development across the period, up from £4.7 million during the equivalent period of last year.
Delcam, based on the Small Heath Business Park, saw software licence sales growth across the globe, including North America and Europe – its largest markets.
However, the most significant increases were in Asia and South America, where licence sales rose by 48 per cent and 50 per cent respectively.
Chairman Peter Miles, said, “These encouraging results reflect recovery across all our major territories globally and were supported by our decision to maintain investment in product development and marketing during the downturn in order to gain commercial advantage.”
“As we look ahead over the remainder of the year, while we are very encouraged by the company’s trading performance in the first half, the ongoing improvement in sales and profitability will be materially influenced by the final quarter of the year, which is our most important trading period, historically.
"At this early stage in the second half, we remain optimistic that the improving trend will continue and, if this remains the case, we would expect trading results for the year to 31 December 2010 to show a significant improvement on results for 2009.”