Delcam PLC
29 November 2007
DLC.L
DELCAM PLC
('Delcam' or 'the Company')
Trading Update
Delcam, the UK's leading supplier of CAD/CAM software solutions to manufacturers
worldwide, today gives an update on trading for the current financial year to 31
December 2007.
At half year results in August, we stated that the normal yearly business
pattern for Delcam is to achieve higher sales and profits in the second half of
the year than in the first half. However, we also expressed concern that the
anticipated outcome of the year could be adversely affected by the continuing
weak dollar since more than half Delcam's global sales are undertaken in the
US$.
In the light of the ongoing weakness of the US dollar and the slowdown of sales
in Korea and Thailand due to economic and political problems respectively, the
Board has reviewed the current trading position and has concluded that pre-tax
profits are likely to be below expectations. While it is difficult to predict
the outcome with certainty, pre-tax profits for the year are expected to be
around £2.1m giving rise to a net cash position of approximately £4.2m. Sales
for the year, including acquisitions, are expected to grow by 10%.
Our software offering remains market leading within our chosen sector and we are
increasing our investment in product development and sales organisation to
ensure that Delcam's position remains unrivalled.
We expect to announce preliminary results for the year at the end of March 2008
when we will also provide an update on current trading.
Enquiries:
Delcam plc Hugh Humphreys, Managing Director T: 0121 766 5544
Biddicks Katie Tzouliadis T: 020 7448 1000
Brewin Dolphin Neil Baldwin T: 0113 241 0126
About Delcam plc
Delcam is the UK's leading developer and supplier of advanced software solutions
for product development and manufacture. Based in Birmingham, Delcam has more
than 125 local support offices in over 80 countries worldwide.
Delcam's specialist software is used by more than 15,000 organisations, ranging
from multi-national corporations to independent designers and toolmakers. The
Company has customers in a wide variety of industries, including aerospace,
automotive, electrical appliances, footwear, ceramics, packaging, toys and
sports equipment.
This information is provided by RNS
The company news service from the London Stock Exchange