U.K. publisher Codemasters has been slowly transitioning into a global company and it's paying off. In the 12-month fiscal period ended June 30, 2007 Codemasters' sales increased by 38 percent to £71.5 million ($149 million). Operating profits saw a five-fold increase to £5.6 million ($11.6 million) and net cash-flow from operating activities improved by 33 percent to £9.0 million ($18.7 million).

Much of the publisher's success has been fueled by its relatively new U.S.-centric approach. In fact, Codemasters actually saw a 332 percent increase in dollar sales of video game software in the U.S. retail channel, according to NPD data, which apparently "charts Codemasters as one of the top five fastest growing video game companies in the U.S."

U.S. software sales comprised more than 20 percent of Codemasters' total sales, as the U.S. business was "bolstered by expanded distribution and a high percentage of full-price sales." Thanks to the U.S. contribution, Codemasters' sales in North America grew by 151 percent to £17.1 million.

"The results stem from improvements in sales, marketing and distribution established during the past two years. In December 2006, the company signed a distribution agreement with Warner Bros. Home Entertainment Group, which has enabled Codemasters to achieve record sales in the U.S. In 2007, Codemasters further demonstrated its commitment to the U.S. market by appointing a management team of accomplished industry veterans based in Los Angeles," the company stated.

While the U.S. growth has been tremendous, Codemasters also continued to excel in the U.K. where the publisher was in the Top 40 charts with seven games during fiscal 2007 (compared to three spots in the U.S. Top 20 listings). The company was named U.K. Developer of the Year at the 25th Golden Joystick Awards.

Top games such as DiRT and Overlord fueled results. After DiRT hit the market in June, the game topped the U.S. best-seller charts for titles on the Xbox 360, and it's sold more than one million copies to date. As for Overlord, the action adventure game reached the top 10 charts in the U.S., U.K., Germany, France, Italy, Spain and the Netherlands.

Furthermore, although it's certainly not U.S.-centric, Brian Lara International Cricket 2007 remained the number one selling cricket game, assisted by the ICC Cricket World Cup. The million-selling franchise was also brought to mobile phones through a partnership with Glu.

Codemasters also said that its The Lord of the Rings Online: Shadows of Angmar, which launched in Europe in April, "has become one of the most successful massively multi-player online games (MMOGs) seen to-date," although exact sales figures were not provided.

"The company has never been in a better position to innovate and grow. Codemasters has the right team and the right technology to compete on a global scale in the interactive entertainment industry. Our results demonstrate that Codemasters is firing on all cylinders," said a very pleased Rod Cousens, chief executive of Codemasters.

Thanks to the company's success and the recent $100 million in funding from Goldman Sachs and Balderton Capital, Codemasters has also invested £40.5 million ($84.3 million) in game design and development, which is an increase of more than 150 percent over the previous year. The publisher noted that it's "committed to creating innovative games, not just on the existing console, PC and portable platforms, but for emerging segments of the market, including the casual and mobile spaces."

Part of the investment also includes a build up of technology infrastructure. For example, DiRT was the publisher's first title to use a new proprietary engine called "Neon."

"The engine is a highly versatile middleware technology that can be used to develop games for all genres and platforms. Its advanced graphics and physics technology brings an unmatched cinematic quality and realism to interactive entertainment. The engine is being deployed in the development of Operation Flashpoint 2: Dragon Rising, a military action title, and a new Race Driver game in the best-selling Codemasters flagship racing series. Further details and the new tech branding for the engine is to be announced," the company explained.

Online games technology is another important investment. The company has boosted its server, network management and customer service capabilities and created "Code M," an online community hub, which currently has over 1.7 million subscribers worldwide.

Moving forward, Codemasters expects its business to be driven by Turning Point: Fall of Liberty, HEI$T, Rise of the Argonauts, and the aforementioned Race Driver title.

GameDaily BIZ recently had the pleasure of speaking at length with Rod Cousens and we'll be bringing you the full interview in the near future, so please stay tuned.