Currency only black mark for e-learning company

THIRDFORCE, THE Irish e-learning company with listings on the Aim and IEX markets, which is the subject of a management buyout offer, has reported strong revenue and profit for the year ending December 31st, 2008, while weakness in the dollar and sterling impacted heavily on returns throughout the year.

Revenues for the year were €26.9 million, an 18 per cent increase on the previous year, including a full year’s contribution from MindLeaders, the US e-learning company acquired by ThirdForce in 2007. On a constant currency basis, revenues increased by 31 per cent.

Group operating profit – prior to non-cash adjustments – was €3.1 million on a constant-currency basis, an increase of 21 per cent on the previous year’s profit of €2.6 million.

Adverse currency exchange rates trimmed this back to €2 million for the year.

With strong cash flow from operations, ThirdForce strengthened its balance sheet and reported net cash of €6.9 million at year-end, up from €4.2 million in 2007.

Operating profits exclude a full year of amortisation charges on intangible assets following from the 2007 acquisition of MindLeaders.

Additionally, goodwill impairment was incurred primarily as a result of cash flow projections which were not realised due to very unfavourable exchange rates.

Taking these combined factors into account, the group absorbed a loss of €2.3 million for the year.

Taking the global economic downturn into account, chief executive Brendan O’Sullivan said ThirdForce had planned accordingly and expects to show a solid year ahead.

Last month, The Irish Timesrevealed that ThirdForce had received an approach for the business from its chairman, Pat McDonagh, and Mr O'Sullivan.

A company called LearnVantage, controlled by Mr McDonagh and Mr O’Sullivan, offered eight cent a share in cash for the business, valuing their offer at €20.3 million.

A spokesman for the company said yesterday there had been no further moves from either side to conclude a deal.