ThirdForce revenues jump 35pc to €22.8m

16 Apr 2008

Irish e-learning player ThirdForce saw operating profits for 2007 jump 160pc to €2.6m following its acquisition last year of US company Mindleaders.

The London AIM- and Dublin IEX-listed software company reported a 35pc increase in 2007 revenues of €22.8m.

The company said it had net cash of €4.2m in the bank, compared to two years ago in 2006 when it had a net debt of €5.3m.

“Last year, ThirdForce achieved its primary strategic goal of establishing a presence in the US with the US$18m acquisition of MindLeaders,” said Brendan O’Sullivan, group chief executive officer.

He added that the US now offers exciting new markets for the e-learning products and services ThirdForce has already established in the UK, and the company is specifically targeting US companies in the sub-Fortune 1,000 sector.

In the UK, ThirdForce saw traction in the care sector and the group’s core hospitality market is growing with the addition of further multi-year contracts with major clients.

The past year has also seen a transformation in ThirdForce’s financial position, with significant growth in revenues, profits and the establishment of a strong net cash position following the €15m share placing during 2007.

“Our revenues are up 35pc to €22.8m, mainly due to a six month contribution from MindLeaders which more than balances a modest reduction in UK revenues.

“In the UK our deliberate strategy to focus on higher-margin, renewable contracts and to reduce our exposure to the lower-margin hardware business resulted in a revenue reduction but an increase in profits” O’Sullivan said.

Operating profits, including the six-month contribution from MindLeaders, rose from €1m to €2.6m and adjusted earnings-per-share increased 80pc to 1.27cent.

“Our balance sheet has also been transformed and, even after the $18m MindLeaders acquisition. We have moved from a net-debt position of €5.3m at the end of 2006 to a net cash outcome of €4.2m at year-end 2007.

“That puts us in a strong position not just to grow the business organically but to look at possible acquisitions that would also drive further growth,” O’Sullivan added.

By John Kennedy