UK construction collaboration technology vendor Cadweb has published a website news release about its financial performance in 2008 that tries to give a positive outlook without any figures to flesh out the claims.
Cadweb says it had “very strong growth in turnover and profits” last year. Turnover was apparently up 21% from 2007, while profitability “leaped in 2008 by nearly 50% over the 2007 figure”. The company says its forecasts for 2009 and 2010 may see it exceed this percentage growth for both turnover and profit.
Cadweb portrays itself as sitting pretty despite the Credit Crunch: “The company has no external funding, thus cannot be adversely effected by any changes in the fortunes of external financial investors unlike others in the sector” (my emphasis).
I would take such claims more seriously if the company gave more details about its financial performance so that they can be substantiated. For years it has hidden behind small company exemptions (section 249, and Part VII of the of the Companies Act 1985) that allow it to submit unaudited and abbreviated accounts to Companies House. For all we know, Cadweb’s turnover might have grown from £100,000 to £121,000 in 2008, while profitability could have leapt from £100 to nearly £150! Come on, Cadweb, show us the money!
Nonetheless, the growth figures are broadly in line with competitors’ performance. My employer, BIW Technologies, grew 27% to September 2008 and more than doubled its profit; Aconex reported strong growth; and 4Projects‘ turnover was up a third.