E-LEARNING GROUP ThirdForce has posted a net loss of €737,000 for the first half of the year, largely due to increased costs and the strength of the euro against the dollar and sterling.
The net loss of €737,000, or 29 cent a share, compares with a profit of €573,000, or 38 cent a share, for the same period in 2007.
Revenues at the Aim and IEX-listed firm, which sells predominantly into Ireland, Britain and North America, increased 50 per cent to €13.5 million. Sales were helped by a full sixth month contribution from MindLeaders the US business that it acquired for $18 million in May 2007.
Distribution costs jumped to €4.15 million from €1.62 million a year earlier, while administration expenses surged 61 per cent to €7.8 million.
In a statement released to the Dublin market, the firm said operating profit increased marginally to €804,000, but this would have more than doubled to €1.56 million "had exchange rates in the first half of 2008 remained the same as in the corresponding period in 2007".
Chief executive and founder Brendan O'Sullivan was upbeat about the performance. "The first half of 2008 has been a period of solid growth for the company, although the currency translation to euro takes the gloss off our solid revenues and operating profits," he said. "Obviously a cautious business sentiment and weakening currencies create an unhelpful trading environment and general challenges."
ThirdForce predominantly provides electronic training in the hospitality, healthcare and technology sectors. Mr O'Sullivan had begun to execute on one of its key goals of cross-selling its products between the UK and US markets.
The company has offices in Britain, Ireland, US, Australia and Canada and employs about 230 people.
- (Additional reporting: Bloomberg)
