13 June 2008

Lantek records a sharp increase in turnover in 2007

Lantek has achieved its best ever results, with a 17% increase in turnover in 2007 whilst, at the same time, increasing its workforce by 14% and exceeding the figure of 8,000 customers worldwide. In 2008, the company aims to increase its turnover by 22% and continue its policy of international expansion, opening new offices in Russia and Latin America and reinforcing its presence in the Baltic States, Eastern Europe and the Middle East.

Lantek, a global leader in the design and marketing of integral solutions in CAD/CAM and ERP for the machine tool sector, has published its latest financial results, for 2007. In this year, the company achieved a turnover of 10.2 million euros, 17% up on 2006. This comfortably meets its targets, as well as showing one of the sharpest increases in turnover since it began trading in 1986. These excellent results have also been reflected in the workforce, which now totals 170, 14% more than at the beginning of 2007.

Lantek’s results have been driven by, amongst other things, its customer portfolio, which has recorded growth of 16% in 2007, exceeding 8,000 customers in over 90 countries worldwide. Another major factor has been the company’s commitment to investment in R&D; in 2007 this was over 2 million euros. This is seen as essential to Lantek’s growth, and is supported by the three development centres it has in Alava (Spain), India and Poland.

“The overall assessment of the year is an extremely positive one. We are very satisfied with the results obtained, and especially so when we consider that our targets were highly ambitious”, commented Alberto Martínez, CEO of Lantek Sheet Metal Solutions. “We have continued to grow since we first began trading, both in financial terms, our international presence and our workforce. That says much about our hard work, as we continue to lead the global market in sheet and section cutting and punching, as well as consolidating our position in the new markets we are targeting.”

Sharp growth in international business
Out of the overall business gained by Lantek, 22.5% is in Spain, where 43% of sales come from contracts signed with new customers, of which there are now more than 2,200. The company has also seen the share of turnover from maintenance contracts rise by 31%.
The bulk of the business was generated abroad, in keeping with the company’s expansion policy. A breakdown by countries reveals that Lantek’s subsidiaries in Germany, France, Italy, and the United Kingdom, as well as the recently opened office in Poland, are the ones that have recorded the highest growth. In particular, the offices of Lantek Germany and Lantek UK showed rises in turnover of 43% and 31%, respectively, duly largely to the boost given to sales by the company’s Lantek Expert III ERP management solution, one of the main product developments in 2007.

Lantek’s commitment to international expansion is key to its success, as shown by the opening of subsidiaries in Poland, Turkey, Mexico and China, where it opened its third office in 2007.

“These results uphold Lantek’s position as the foremost seller of integral solutions within the sheet and section processing sector, both at home in Spain and abroad. In addition to making a powerful entry into new markets in Europe, Asia and Latin America, thereby increasing the number of branches, we have worked to expand those we already had. All this has been made possible thanks to the support and commitment of our network of partners and collaborators, which now number more than 35 worldwide, as well as to our to our R&D policies”, stated Joseba Pagaldai, International Marketing Director at Lantek Sheet Metal Solutions.

Challenges for 2008
During its Annual International Meeting, held at the Technology Park in Alava and attended by Lantek’s board of directors, as well as by senior management teams from its offices throughout the world, Lantek presented an assessment of 2007, and revealed its strategic plans and business targets for 2008. Once again, the company has set very ambitious targets, as it aims to increase turnover by 22% over that of 2007.

One of Lantek’s priorities is to continue its policy of expansion abroad, so there are plans to open an office in Russia, as well as extend and bolster its presence in the Baltic States, Middle East and Eastern Europe through distribution agreements. In addition, a new centre for customer support and service is to be opened in Latin America. All of this will take place at the same time as it seeks to consolidate its offices in Turkey, Mexico, the Czech Republic and its third office in China.

Elsewhere, Lantek will focus on driving the marketing of the recently launched Version 27 of its Lantek Expert II software for sheet and section cutting and punching, as well as of its Lantek Expert III ERP. It will also continue to invest significant funds for R&D and training, not only to fine-tune the products on offer in order to continue providing quality solutions, but also to ensure it has a highly skilled and qualified team of professionals, enabling it to provide high value service. To achieve this, Lantek plans to assemble a team that is specifically dedicated to this business area. In addition, the company remains committed to attending exhibitions and events in the machine tool sector, both at home and abroad.

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