Thirdforce shares surge as operating profits rise 160%
The company however said this year will be a challenging one given the changing dynamics of the e-learning market, uncertainty over customer purchasing as a result of the general economic downturn and the continuing weakness of both sterling and the dollar against the euro.
But last year was described as “a year of transformation” for the group.
The company said revenues were up 35% to €22.8m after the successful acquisition of US group Mindleaders during the year.
Adjusted earnings per share increased 80% to 1.27 cent.
The company also said that net cash of €4.2m for last year compares to 2006 net debt of €5.3m.
The company said that trainer MindLeaders.com, which it bought last year to expand in the US, beat sales and profit targets.
ThirdForce expanded into the e-learning industry after it stopped making keyboards in 2003.
Chief executive Brendan O’Sullivan said: “Last year, ThirdForce achieved its primary strategic goal of establishing a presence in the United States with the $18m (€11m) acquisition of MindLeaders.
“I am delighted that MindLeaders, our biggest ever acquisition, has been successfully integrated into ThirdForce and has exceeded its revenue and profit targets.”
In Britain, ThirdForce said it is seeing good traction in the care sector.
“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” said Mr O’Sullivan.
“Our balance sheet has also been transformed and 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, and that puts us in a strong position not just to grow the business organically but to look at possible acquisitions,” said Mr O’Sullivan.
The company rose as much as 18% in Dublin trading after the report.
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