Delcam expects profits ahead of expectations

BIRMINGHAM based manufacturing software supplier Delcam has announced it expects pre-tax profits to be above market expectations after enjoying a buoyant fourth quarter.

The company is the UK’s leading developer and supplier of advanced software solutions for product development and manufacture.

In a trading update, the firm said: “Trading during the fourth quarter, which typically represents the group’s most active trading period, has been buoyant, with both software licence and maintenance sales ahead of management expectations.  

“This strong performance has been felt across all the group’s major markets in Europe, Asia and North America. As a result, the board expects the group to deliver pre-tax profits above current market expectations.”

Investors reacted well to the news and shares rose in early trading.

In November the company announced it had signed a Memorandum of Understanding with First Auto Works in China. The agreement is expected to be worth £500,000 over the next 10 years.

The announcement of the deal formed a crucial element of the Government’s trade mission to China and was held up by the Prime Minister as the kind of opportunities available to British firms willing to trade with China.

“Whilst the pace of continuing growth over 2011 is difficult to predict at such an early stage, the board believes that recovery is firmly established and therefore views the outlook for 2011 with confidence,” added today’s statement.  

The company expects to announce its preliminary results towards the end of March 2011.