NETD.L Share News (NETD)

NetDimensions, a firm that develops software for staff training within the market of talent management, doubled its revenue in 2011. The company reported top-line growth rates of 133% in the USA, 64% in China and 28% in Asia Pacific, took on 135 new clients and is to make its first dividend payment. With a view to paying an annual dividend hereon in, the company paid 0.5p from profit and a special one-off dividend of 1.5p from the premium share account, which the firm said was to "reward shareholders for their patience now the company is strong enough". Year-on year pre-tax profit rose from $0.12m to $0.64m on revenues of $12.3m (2010: $8.3m), partly the result of deferred revenue from two acquisitions made in 2010. Basic earnings per share were 1.4c from 0.4c the previous year. Selling expenses jumped $1.9m to $5.2m, largely because of increasing staff numbers. Chairman Roger Durn told Sharecast: "Although the acquisitions were successful, they were not as good as they could have been. We certainly learned from our acquisitions and next time we will be firmer."While revenue is not likely to see the percentage levels of growth it did last year we are cautiously optimistic of another good year."The board expects future growth to be funded by the group's strong financial position and future positive cash flows from existing business." The firm added that while it is "actively looking" for appropriate acquisitions, none are currently in the pipeline. Cash at the end of the year increased to $6.9m from $6.0m the year before. The company is currently in the process of refocusing itself as a talent management company, rather than simply staff training, and is looking to boost revenue through its local after-sales services. NetDimensions said that it has been a "straightforward step" to align itself with the talent management and human capital management markets as they offer bigger deals within a bigger market. The transition is occurring through the addition of further programmes, known as the Talent Suite, which includes motivation for continued performance, which is being released in May, and career progression and learning growth, both due to be released around August 2012. The company added: "In 2012, the group will invest aggressively to develop and market our new talent management system and seed this new offering in our global markets. We are confident that the NetDimensions Talent Suite will become a substantial group business over time."House broker Panmure Gordon commented that NetDimensions' results were "gobsmacking" and said the sector has witnessed "a slew of M&A [mergers & acquisitions] activity of late", the result of an increasing awareness by companies that human capital management is increasingly important in a slow economic growth environment, where work and staff dynamics are changing, something that "makes for an exciting growth market".NR