Online learning group ThirdForce is forecasting a pick-up in sales this year, though ongoing investment will continue to stifle profit, chief executive Brendan O'Sullivan said.

The company, which is quoted on the IEX and has offices in Dublin, London, Canada and Australia, yesterday reported a decline in 2005 operating profit to €669,000 from €1.3 million in the prior year. Revenue, as released to the stock exchange back in January, was 5 per cent ahead of the prior year at €12.6 million. Mr O'Sullivan attributed the decline in profit to €1.2 million worth of investment in new business divisions and technology. He said that while investment will continue in 2006, it is unlikely to be as high as last year. Revenue will likely increase by 50 per cent, he said, reiterating a January forecast.

"2005 was a year of investment for us and that is going to continue in 2006," he said.

"Acquisition and growth has been a key part of our strategy . . . We remain vigilant for all opportunities." Last year ThirdForce announced plans to diversify beyond IT training and into online assessment, adult literacy and workplace learning, to position itself as a broadly based learning company.

As part of that strategy it made its third acquisition in three years buying Creative Learning Media (CLM), the UK's leading supplier of e-learning programmes for the hospitality, food, retail and healthcare sectors, in a deal worth up to €8.1 million. This acquisition created a fourth division for the group and several large British companies such as Regent Inns and Premier Food Group have already paid six-figure sums to use CLM's products.

According to Mr O'Sullivan, the UK is ThirdForce's strongest growth area and he expects this to continue as the firm benefits from increased investment by the UK government in learning products. "This additional funding feeds directly into some of our key markets," he said.

At the end of December, ThirdForce's net debt stood at €6.7 million, compared with €2 million a year earlier.