ThirdForce, the international e-learning company with listings on the AIM and IEX markets, has reported strong revenue and profit for the year ending 31st December 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 an actual figure of €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.
Brendan O’Sullivan, Chief Executive Officer of ThirdForce said: “We continued our successful development throughout 2008 reporting further growth in revenues and continued strong profitability. ThirdForce is an increasingly diversified international business with a very wide geographical spread in key markets, an extensive e-learning product portfolio and multiple revenue streams.”
Taking the current global economic downturn into account, Mr O’Sullivan said that ThirdForce has planned accordingly and expects to show a solid year ahead. He also confirmed that trading for the first quarter of 2009 has been in line with expectations. The company said it is continuing to assess the market for suitable investments or acquisitions that will help to drive further scale in the business.