Engineering design software supplier Delcam says that first quarter trading has been better than expected and this has led to a profit forecast upgrade for 2010.
European software sales have been strong and maintenance revenues have held up well. The overall market declined in 2009 but it is recovering this year.
House broker WH Ireland has upgraded its forecasts for 2010 and 2011. It increased its 2010 profit forecast by £200,000 to £1.9m on the back of a £300,000 rise in forecast revenues to £33.8m. Profits have been upgraded by a similar amount to £2.2m in 2011. That is still below the profit of £2.4m made in 2008.
At 235p a share, up 5p on the day, Delcam is valued at £18.1m. The shares are trading on 12 times prospective 2010 earnings and a prospective yield of 2.4%. There was £5.7m in the bank at the end of 2009.
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