Lantek records solid growth in the first six months of 2008

Lantek has reported its financial results for the first half of the financial year 2008. Over these six months the multinational has achieved a global turnover of 5.6 million euros, representing a growth of 25% when compared to the same period last year.

Lantek’s turnover for the first six months of 2008 is largely due to business generated abroad and to the activity of its partners - it now has a total of 19 offices worldwide.

"Our internationalisation strategy is yielding very good results, and the proof is in these figures, as we have managed to exceed our initial growth forecasts in the first half of the year alone,” said Alberto Martínez, Manager of Lantek Sheet Metal Solutions. "We haven’t stopped growing and increasing our presence in other countries since our business began, even during periods that were difficult for the international sheet metal and machine tool market. We believe that we are working efficiently and that our solutions are achieving great market acceptance.”

Of the total business secured by Lantek during this period, the strongest growth has been in China (91%), followed by Turkey (90%), the Middle East (50%) and Latin America (43%). Other relevant markets where high profits have been obtained are Poland (34%), Spain (25%) and Germany (23%). These percentages demonstrate the positive response of the markets in which Lantek has recently opened new offices.

"We have succeeded in making all our subsidiaries self-financing in record time. This is a very positive outcome for Lantek. We continue to be leaders in the world sheet metal and profile cutting and punching market and we have been able to consolidate our position in the new markets where we have recently begun to operate,” Alberto Martínez affirmed.

Other factors to consider

Results have also been boosted by the increase in the sales made through the machine tool manufacturers who are implementing Lantek’s solutions on their machines. Such firms include: Baykal Makina, a Turkish company that has increased its sales of Lantek software by 95%, Euromac, with a 70% increase, followed by Danobat and LVD, with percentages of 60% and 10% respectively.

A further key part of Lantek’s strategy, which has played an active part in exceeding targets, is the multinational’s distributor network. In the first half of 2008 the company’s partners also saw turnover increase. Particularly significant were the Spanish firms Jusep Muntal (62%) and TCI (22%), while the Brazilian corporation SKA (57%) has been noteworthy in the international sphere.

In the first half of 2008, Lantek has been able to widen its distribution channel after signing new agreements with cutting machine manufacturers and distributors such as Servonom in Turkey, SIMCO in Dubai as well as with the Chinese companies Unity Prima and Chutian Láser Co. Ltd.

Furthermore, compared with the same period last year the company achieved a 9% increase in the turnover for its maintenance area.

As regards software solutions, Lantek’s business management software product for the sheet metal sector, Lantek Expert III, increased its sales by 32%, enabling the multinational to extend its team of professionals working on the development and marketing of these solutions in Spain, a country where the number of users has tripled. The division specialising in CAD/CAM software development, which includes the Lantek Expert II product, reported a growth of 16% over the last six months.

Within this context, the multinational remains committed to its innovation policy, and has accordingly increased the percentage of investment earmarked for its R+D+I area. The aim is to improve its products and services as well as to offer new ones to proactively combat the current downturn in the world metal market. An example of this development initiative is the renewal of the technology platform for the Lantek Expert II and Lantek Expert III solutions, which has recently been carried out by the company. By optimising its software and adapting it to the capacities of computers equipped with dual or quad core processors it will achieve processing speed improvements of between 30 and 40% for its products.

“This is an area we always maintain or increase, and never reduce, regardless of the state of the sector. We think the present moment is a good time for innovation and solution-seeking, with a view to improving our technology and offering quality products and services that will make companies more competitive. Our philosophy is to innovate, even in a difficult economic climate, as this means continual progression and optimization, so that we will continue to be at the top once the crisis is over,” commented Alberto Martínez.

The positive results have also been reflected in staffing levels, with an increase of 11%, and in customers, with more than 8,300 today all over the world.

Challenges for the second half of 2008

Over the next six months, Lantek will continue with its international expansion strategy, signing new distribution agreements.

The multinational will also continue to cultivate and invest resources in its R+D+I program, as well as enlarging its team of professionals, with staffing levels of 210 planned for the year-end.