IHP24 May 2010 11:57
Intellego*/**
Followers of this company have seen a sequence of announcements, which in sum suggest that Intellego's new team of executive directors will develop the high margin side of the business with a lower cost base and with a cleaner balance sheet. Subject to a CVA being agreed debtors will be reduced by around £ 600,000 and a loss making subsidiary will be closed. Going forward the quality of earnings will by focusing on the higher margin and repeat revenue business from the growing library of Intellego owned material as revenues become 70% services. Aim listed Net Dimensions has brought back distribution rights to its own branded e-learning solution for up to £ 464,000 of which some of the funds will be offset against debts and Net Dimensions has taken an 11% stake in the enlarged group. We are reviewing our forecast but are confident that, perhaps at last, Intellego can build it s acquisitive growth strategy from a stable profitable base. Buy