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Xpertise

  • BY: Andrew Hore |
  • POSTED: 14/08/2007 |

Training company Xpertise is on course to more than double its profits this year. 

Interim figures were in line with expectations. Turnover grew from £7.85m to £10.6m, which was faster than expected. However, margins were slightly weaker than expected. Excluding one-offs, profits rose from £125,000 to £226,000.

Two managed training contracts started in the first half and this part of the business contributed 14% of turnover. Margins are lower than the rest of the business but revenues are more predictable. 

The IT and professional skills businesses are growing. The personal and team development skills business didn’t have as many large one-off contracts in the period and the decline in its sales was expected. It has still been an excellent purchase for Xpertise which has already paid for itself. 

The balance sheet is strong with cash of £2.1m. There is a convertible loan of £190,000 but this is expected to be converted into shares. Customers are reassured by the cash in the balance sheet.

Although second half turnover is likely to be similar to the first half, the profit contribution is likely to be weighted towards the second half. That is because of start-up costs on the new contracts. There is deferred income in the balance sheet of £4.2m so that provides some visibility.

House broker Daniel Stewart forecasts profits will jump from £320,000 to £680,000. There is even the chance of a full year dividend now that the balance sheet has been restructured.

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