CAD/CAM software company Delcam improved its profits in 2008 but that improvement came in the first half.
Revenues rose from £29.7m to £32.9m. Around half of the improvement came from an increase in maintenance revenues from £8.1m to £9.7m. Profits increased from £2.15m to £2.26m.
Cash generation remains strong and net cash improved from £5.3m to £6.4m by the end of 2008. The final dividend has been reduced from 4p to 3.9p a share but the total for the year is unchanged at 5.25p a share.
The favourable exchange rate should help Delcam. It wants to grow outside of its core are of manufacturing into services and healthcare. However, it will be tough to retain the revenues in the manufacturing sector during the recession. Research and development spending will not be cut.
At 182.5p a share, Delcam is valued at £14.1m.
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