The weak dollar hit Delcam’s profits in 2007.
This knocked £500,000 off the CAD/CAM software company’s profits and was the main reason behind the dip in profits from £2.79m to £2.15m. Sales still increased by 11% to £29.7m. Just over half the revenues are generated in dollars and most of the rest are in Euros.
Earnings per share fell by more than one-quarter to 26.5p. This is because of the £6.1m share subscription by instruments manufacturer Renishaw. Delcam has net cash of £5.3m.
There is a wide geographic spread of revenues and 48,000 end users.
Current trading is in line with expectations. Delcam is looking for acquisitions but in the short-term it is likely to focus on organic growth. Brewin Dolphin forecasts profits of £2.7m in 2008.
At 260p, the company is valued at £20.1m. Renishaw subscribed for its stake at 400p a share.
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