Delcam on course for better-than-expected profits
SOFTWARE firm Delcam has announced it is on course to deliver better-than-expected pre-tax profits for the current year.
The Birmingham-based company, which was last month a recipient of the Queen’s Award for Enterprise, develops and supplies advanced software solutions for product development and manufacture.
In its first quarter trading update, the company said business during the first three months of 2010 had been better than management had expected, with software sales on a global basis – especially in the European market – also ahead of target.
In a statement to the London Stock Exchange, the company said: “Maintenance revenues (derived from software licence maintenance renewals), which accounted for 34% of group revenues last year and which historically perform most strongly in the first quarter of the year, have shown robustness on a worldwide basis.
“As a result of both factors, the board expects the group to deliver pre-tax profits for the year ending 31 December 2010 ahead of current market expectations.”
“Whilst the current economic climate makes it difficult to predict with any certainty the pace of continuing recovery, the board continues to view long-term prospects for the company very positively,” it added.
