RNS Number:9045I
Delcam PLC
19 March 2003
Delcam PLC
Preliminary Results for the year ended 31 December 2002
Delcam achieves continued sales growth
despite difficult economic conditions
2002 2001
* Sales #18.9m #18.2m +4%
* Pre-tax profit #1.07m #0.85m +25%
* Basic earnings per share 14.0p 9.9p +41%
* Final dividend 2.55p 2.40p
Total 3.50p 3.35p +4%
* The results show the effects of strong trading in the second half due
to continued expansion of the customer base, with 1,500 new customers being
acquired during the year.
* 2002 saw the launch of the world's first Total Modelling design
solution.
* New Sales Partners and staff appointed during the year, as we continue
to build stronger relationships with suppliers of related equipment. Toshiba
Machines appointed Delcam as their preferred CAM partner at the end of the year.
* Continued investment in R & D, representing 24% of turnover.
* Directors confident that investments will increase future results and
therefore the Company is increasing the level of dividends for the full year.
"0ur increased investments in product development, marketing and the expansion
of our sales channel, mean that we start 2003 in a strong competitive position.
However with the year starting slowly, the uncertain political and economic
climate makes it difficult to forecast with any certainty. While I remain
optimistic about our prospects in the long term, it is clear that increased
confidence is needed amongst our customers before we can achieve our full
potential. As ever, I would like to thank the staff for their hard work and
contribution during the year"
Tom Kinsey, Chairman
FULL STATEMENT ATTACHED
Enquiries:
Hugh Humphreys, Managing Director (mobile 07970 766554)
Kulwant Singh, Finance Director Ian Stanway
Delcam PLC Williams de Broe Plc
Tel: 0121 766 5544 Tel: 0121 609 0050
web-site: www.delcam.com
Delcam PLC
Preliminary Results
for the year ended 31 December 2002
STATEMENT BY THE CHAIRMAN, TOM KINSEY
Financial Highlights
I am very pleased to report that Delcam's sales continued to grow during 2002,
reaching #18.9 million compared with #18.2 million during 2001, an increase of
4%. Profit before tax for the year also increased, rising from #0.85 million in
2001 to #1.07 million during 2002, an improvement of 25%. These results are
especially pleasing given the very difficult economic conditions in many of the
markets in which we operate. They have been achieved even after the company
continued its high levels of investment in R & D, marketing and people. As
declared in my previous statements, the Company believes that these investments
are essential to continue the company's sales and profit growth. Basic earnings
per share were 14.0p compared with 9.9p last year.
Dividend
The Board proposes to pay a final dividend of 2.55p per ordinary share (2001 -
2.4p), making the dividend for the full year 3.5p per share (2001 - 3.35p per
share). It will be paid on 9 May 2003 to shareholders on the Register as at 4
April 2003.
Review
During 2002, Delcam continued its progress as the leading international supplier
of complete, automated CADCAM systems for the design, manufacture and inspection
of complex shapes. This progress has been maintained despite the poor economic
conditions and uncertain political climate in many of our key markets. These
factors have restricted sales in many territories throughout the year, with a
lack of long-term confidence limiting investment by both our existing and our
potential customers. To continue to grow sales in this environment is a strong
testament to the quality of our products and services, the effectiveness of our
marketing, and the skills and expertise of our sales network. During the year
we acquired 1,500 new customers who will generate increased maintenance revenues
in future years.
Total spending on R & D over the year increased by over #450,000, allowing
regular releases of new and improved software programs throughout the year. This
continued high level of investment does affect our short-term profitability but
we believe it is essential for the achievement of our longer-term sales and
profit goals. During 2003, we will place additional emphasis on research into
inspection software and e-commerce systems. The results of these investments are
expected to be seen in 2004. While the majority of the investment in R&D will
continue to be funded by the company, we will continue our involvement with
British and European collaborative research projects whenever appropriate.
Traditionally, Delcam has relied on copyright to protect our innovative
intellectual property but we have started to apply for patents in response to
the unwelcome trend, particularly in the USA, to seek patents for any innovative
processes. This is clearly an increased expense but one we now feel we must
selectively embrace to ensure that we enjoy the benefits of our developments.
The latter part of the year saw the formation of a new Custom Software
Consultancy Group, based at the company's Birmingham headquarters. The Group
will undertake bespoke software projects in a range of manufacturing sectors,
including the aerospace, automotive, medical and toolmaking industries, and
provide dedicated solutions for specific manufacturing processes built around
our existing range of software.
Our Sales Partner network continued to strengthen and grow, with new Partners
appointed in several territories, and new staff recruited and additional offices
opened by our existing Partners. We continued to develop stronger relationships
with suppliers of related equipment, particularly machine tools and inspection
devices, and were pleased to be appointed Toshiba Machines preferred CAM partner
at the end of the year.
Products
The continued high level of investment in product development has produced
significant advances in our two key products - the PowerSHAPE design software
and the PowerMILL machining system. The launch of the world's first Total
Modelling design solution should enable us to develop additional sales among
product designers, while continued progress with our automated methods for
electrode and injection mould design in PowerSHAPE will help consolidate our
position as the leading specialist supplier of CADCAM systems to the
international toolmaking industry. Developments in PowerMILL have focussed on
the increasingly popular five-axis machining options, as well as extending our
leadership in the area of high-efficiency three-axis machining. Both our
reverse engineering system CopyCAD and our ArtCAM software for engraving and
routing have seen their capabilities extended, both as independent products and
as part of the Total Modelling concept. PowerINSPECT has become established as
one of the leading hardware-independent inspection software solutions, with a
further broadening of the equipment with which it can be used planned for 2003.
Our PS-Exchange online data translation service continues to attract new users
and to promote increased sales of the full licences of the software. The first
sales of our new PS-Team product for project and team management have been
recorded. This collaboration software will allow us to gain business outside
our traditional CADCAM markets.
European subsidiaries
The performance of the European subsidiaries was generally disappointing with
only Italy and Germany showing a growth in sales compared to 2001. The UK
toolmaking industry was particularly badly affected by the slow down in
manufacturing in the country, although the impact of these problems was limited
by diversification into other areas of manufacturing, particularly the aerospace
industry.
Rest of Europe
Sales in the other European territories were similar to the previous years, with
gains in some countries balanced by reduced sales in others. The one
significant exception was in Poland, where the establishment of a new branch
office and reseller network saw sales increase dramatically.
The Americas
Further expansion of our Sales Partner network in North America allowed us to
increase our sales in the world's largest market for CADCAM software by over 15%
despite the difficult economic conditions in the region. As with 2001, this
must be considered to be a very satisfactory performance, as we believe that
many of our competitors have seen a decline in their sales.
South America continued to be adversely affected by the economic problems in the
region, although there were some signs of improvement towards the end of the
year. Software sales in Mexico increased over last year but this was more than
offset by declines in sales in Brazil and Argentina.
The Far East
Software sales in most Asian territories showed good growth. Our subsidiaries
in Japan, India, China and Malaysia all continued their progress, while our
joint ventures in Korea, Hong Kong and Taiwan, and our reseller in Thailand
increased their sales significantly.
Prospects
Our increased investments in product development, marketing and the expansion of
our sales channel, mean that we start 2003 in a strong competitive position.
However with the year starting slowly, the uncertain political and economic
climate makes it difficult to forecast with any certainty. While I remain
optimistic about our prospects in the long term, it is clear that increased
confidence is needed amongst our customers before we can achieve our full
potential.
As ever, I would like to thank the staff for their hard work and contribution
during the year.
T R M KINSEY
Chairman
Delcam PLC
Preliminary Results
CONSOLIDATED PROFIT AND LOSS ACCOUNT
for the year ended 31 December 2002
2002 2001
#'000 #'000
TURNOVER 18,913 18,248
Cost of sales (5,863) (5,940)
-------- --------
Gross profit 13,050 12,308
Distribution costs (4,279) (4,177)
Administrative expenses (7,853) (7,412)
Other operating income 244 270
-------- --------
OPERATING PROFIT 1,162 989
Income from interest in associates 63 103
Interest receivable and similar income 11 23
Amounts written off fixed asset investments (46) (104)
Interest payable and similar charges (119) (157)
-------- --------
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 1,071 854
Tax on profit on ordinary activities (231) (294)
-------- --------
PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 840 560
Equity minority interests 5 38
-------- --------
PROFIT FOR THE FINANCIAL YEAR 845 598
Dividends (212) (204)
-------- --------
RETAINED PROFIT FOR THE YEAR 633 394
===== =====
Basic earnings per Ordinary share 14.0p 9.9p
===== ======
Diluted earnings per Ordinary share 13.8p 9.7p
====== ======
Net dividend per share 3.5p 3.35p
====== ======
Delcam PLC
Preliminary Results
CONSOLIDATED BALANCE SHEET
as at 31 December 2002
2002 2001
#'000 #'000 #'000 #'000
FIXED ASSETS
Intangible assets 68 84
Tangible assets 6,371 6,361
Investments 745 766
-------- --------
7,184 7,211
CURRENT ASSETS
Stocks 113 186
Debtors 5,384 4,982
Cash at bank and in hand 593 527
-------- --------
6,090 5,695
CREDITORS: amounts falling due within one
year (3,773) (3,657)
-------- --------
NET CURRENT ASSETS 2,317 2,038
-------- --------
TOTAL ASSETS LESS CURRENT LIABILITIES 9,501 9,249
CREDITORS: amounts falling due after more than one
year (474) (776)
PROVISION FOR LIABILITIES AND CHARGES (129) (150)
DEFERRED INCOME (1,197) (1,192)
EQUITY MINORITY INTERESTS 12 (12)
-------- --------
NET ASSETS 7,713 7,119
===== =====
CAPITAL AND RESERVES
Called up share capital 612 612
Share premium account 1,920 1,920
Revaluation reserve 2,303 2,353
Other reserves 1 1
Profit and loss account 2,877 2,233
-------- --------
SHAREHOLDERS' FUNDS 7,713 7,119
===== =====
Delcam PLC
Preliminary Results
CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2002
2002 2001
#'000 #'000
Cash flow from operating activities 1,324 1,176
Returns on investments and servicing of finance (108) (134)
Taxation (236) (364)
Capital expenditure and financial investment (643) (670)
Acquisitions - (120)
Equity dividends paid (203) (202)
------- --------
Cash inflow/(outflow) before use of liquid resources and financing 134 (314)
Financing (167) (449)
-------- --------
Decrease in cash in the year (33) (763)
===== =====
Reconciliation of net cash flow to movement in net debt 2002 2001
#'000 #'000
Decrease in cash in the year (33) (763)
Cash outflow from decrease in debt and lease financing 167 478
----- -----
Change in net debt resulting from cash flows 134 (285)
Translation difference 18 (29)
----- -----
Movement in net debt in the year 152 (314)
Net debt at 1 January 2002 (1,349) (1,035)
-------- --------
Net debt at 31 December 2002 (1,197) (1,349)
===== =====
Delcam PLC
Preliminary Results
NOTES
For the year ended 31 December 2002
1. ANALYSIS OF TURNOVER
2002 2001
#'000 #'000
United Kingdom 4,949 5,699
Europe 6,766 6,012
Americas 3,100 2,874
Far East 3,343 2,837
Rest of the World 755 826
-------- --------
18,913 18,248
===== =====
2. EARNINGS PER ORDINARY SHARE
Basic earnings per Ordinary share is calculated on profit after taxation and
minority interests of #845,386 (2001 - #597,286) and on a share capital of
6,044,478 (2001 - 6,024,122) Ordinary shares of 10p each. The 'C' Ordinary
shares do not form part of this calculation.
Diluted earnings per share which take into consideration the dilution of
earnings per share if the outstanding share options were exercised, are
calculated on the profit attributable to ordinary shareholders of #845,386 (2001
- #597,286) and on a share capital of 6,133,904 (2001 - 6,134,092) Ordinary
shares of 10p each.
3. RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS
Group
2002 2001
#'000 #'000
Profit for the financial year 845 597
Dividends paid and proposed (212) (204)
Movement in exchange fluctuation reserve 0 (6)
Exchange rate loss (39) (16)
Share capital issued 0 2
Share premium on new issue 0 27
------ -----
Net addition to shareholders' funds 594 400
Opening shareholders' funds 7,119 6,719
------- --------
Closing shareholders' funds 7,713 7,119
===== =====
4. This statement is not being posted to shareholders. The
Report & Accounts will be posted to shareholders on 1 April 2003. Further
copies of this announcement and the Report & Accounts will be available from the
Company's Registered Office: Small Heath Business Park, Birmingham, B10 OHJ.
5. The Annual General Meeting will be held at Delcam PLC, Small
Heath Business Park, on 29 April 2003 at 3.00 pm.
6. The financial information set out above does not comprise
the Company's full statutory accounts within the meaning of Section 240 of the
Companies Act 1985. The full statutory accounts for 2002 are yet to be
finalised. Consequently the audit report is yet to be signed. A copy, when
approved and signed will be filed with the Registrar of Companies.
7. The figures for the year to 31 December 2001 have been
extracted from the statutory financial statements for that year which have been
filed with the Registrar of Companies and carry an unqualified audit report. No
statement was required under Section 237(2) or (3) of the Companies Act 1985.
This information is provided by RNS
The company news service from the London Stock Exchange
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