Bosses at software firm SciSys believe the business is strong enough to ride out the public spending cuts which will hit some of its major customers in defence and other parts of the public sector.
In a statement issued ahead of its AGM today, the Chippenham-based firm said it recognised "the continuing impact of the UK government's 2010 spending review on deferrals of potential projects and programmes in the UK public sector".
The statement added: "Nevertheless with over 50% of its business derived from outside the UK and with a broad spread of customers in other markets, SciSys believes that it is sufficiently resilient to withstand any adverse conditions in the UK public sector."
SciSys supplies high-value software and IT support to customers in the media broadcast, space, environment and application support sectors as well as government and defence.
The firm said it had opened the year with a "comfortable" order book worth £26.5m while order intake so far this year is in line with expectations.
Cash flows were healthy, reflecting a strong balance sheet, the firm said. While the firm is seeking further acquisitions, it will use some of its surplus cash to help buy the freehold on its 44,000 sq ft, two-storey headquarters building on Chippenham's Metheun Park.
Contracts have been exchanged and the purchase is expected to complete before the end of this month.
"The company considers that this acquisition will have an immediate positive impact on profitability by removing a substantial rent liability," SciSys said. "The property will be sublet on a long-term lease to its wholly-owned subsidiary company, SciSys UK Ltd, which is currently the primary occupier. SciSys will also seek to install other tenants in the building to generate additional income."
The deal will be funded partly from cash held by the company, partly from a commercial loan from a UK bank over a five-year term and partly through a three-year loan from founder and chairman Dr Mike Love.
