Irish e-learning company Thirdforce said yesterday that its group operating profit, before goodwill amortisation, in 2007 would be ahead of expectations when its publishes its full-year audited results in April. Ciarán Hancock, Business Affairs Correspondent, reports.
But the company warned its performance in the current year would not meet market expectations due to the global economic slowdown.
In a trading update to the stock market, Thirdforce said it closed 2007 with net cash balances of €4.1 million, "a marked turnaround" from the €5.3 million net debt position a the previous year.
"The increase in profitability directly follows a deliberate strategy to focus on higher margin renewable contracts in the UK, and to reduce for example low-margin hardware revenues to approximately half their 2006 level," the statement said.
Thirdforce said its compliance business grew "significantly" during 2007, with major deals being signed in both the hospitality and care sectors. But the company said its trading had been affected by a weakening of both sterling and the dollar against the euro last year.
About 95 per cent of its revenues are denominated in either sterling or dollars.
Thirdforce said trading in 2008 would be below market expectations due to a global decline in economic confidence, the "changing dynamics" of its markets and the expectation of continued weakness in both sterling and the dollar.
No shares were traded in Thirdforce in Dublin yesterday with the stock closing at 17 cent. It has a market capitalisation of €43.2 million.
