DLC

DELCAM PLC

('Delcam' or 'the Group')

Trading Update 

In Delcam's preliminary results announcement, the Group stated that trading conditions had deteriorated significantly and that the downturn in manufacturing sales and reduced levels of confidence would inevitably impact further on the business. Delcam's trading performance since then has declined against budget, particularly for software sales.   

The Board continues to believe that recovery in the manufacturing sector will occur in 2010 and that the next two years, while difficult, will also represent an opportunity for Delcam to increase its market share. In order to pursue the commercial advantages available to the Group during the downturn, the Board remains committed to continuing investment in the business. In particular, the Board is increasing expenditure in product development and in marketing, especially within the Group's newer territories and sectors.  In view of this commitment to investment and adverse market conditions, the Board now believes that pre-tax profits for the year to 31 December 2009 will be in the region of £1.2 million. The Group remains financially very robust, with a high level of recurring income and net cash of £6.1m as at 30 April 2009.

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