ThirdForce reports year of strong profit growth

ThirdForce, the international e-learning company with listings on the AIM and IEX markets, has reported strong revenue and profit growth in what is described as "a year of transformation" for the group.

"Last year, ThirdForce achieved its primary strategic goal of establishing a presence in the United States with the $18 million acquisition of MindLeaders," said Brendan O’Sullivan, Group Chief Executive Officer.

"I am delighted that MindLeaders, our biggest ever acquisition, has been successfully integrated into ThirdForce and has exceeded its revenue and profit targets."

He added that the US now offers exciting new markets for the e-learning products and services that 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 is seeing good progress 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 35% 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," said Mr O’Sullivan.

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

"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, and 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," Mr O’Sullivan stated.

Mr O’Sullivan said that 2008 will be a challenging year 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.