Thirdforce profits at €804k despite negative impact of exchange rates

IRISH e-learning firm Thirdforce said first half revenues and operating profits have been impacted negatively by the weakness of the US dollar and sterling.

It said revenues in the year to the end of June increased 50% to €13.5 million while there was a moderate increase in operating profits to €804,000.

The company said the increase in revenue included a full six-month contribution from Mindleaders, the US e-learning company acquired for $18m (€12.6m) last year.

It said profits would have more than doubled to €1.56m had exchange rates in the first half of 2008 remained the same as in the same period in 2007.

Thirdforce said it has a strong balance sheet, with net cash at June 30 of €4.49m, compared with €3.64m at June 30, 2007.

Chief executive Brendan O’Sullivan said: “The first half of 2008 has been aperiod of solid growth for the company, although the currency translation to euro takes the gloss off our revenues and operating profits.

“Obviously a cautious business sentiment and weakening currencies create an unhelpful trading environment and general challenges. However the diversification of our enlarged business and the strength of our balance sheet positions Thirdforce well to weather any retrenchment that might occur.”

Thirdforce is growing its market share in hospitality, food safety and care markets in Britain where it said demand remains strong.

“The food safety market in the US has considerable potential due to increased awareness in the hospitality sectors and the presence of few competitors to Thirdforce in the e-learning market. We have also introduced our Mindleaders range to Britain and we now offer an e-learning alternative to the established suppliers...” said Mr O’Sullivan.