NETD.L Regulatory News (NETD)

8 Jan 2009 10:41



NetDimensions (Holdings) Limited 

("NetDimensions" or "the Company")

Pre-Close Trading Update

NetDimensions (AIM: NETD), a provider of performance, knowledge and learning management systems, provides a trading update following its financial year-end on 31 December 2008 and ahead of entering its close period.

Strong growth in turnover 

The Board expects full year revenue to increase by 45% to approximately US$6.3 million (2007: US$4.3 million).

Strong cash position

The Company has maintained a strong cash position, with cash balances on 31 December 2008 of US$5.3 million, the majority held in Sterling and Euros. At 31 December 2008 currency rates this equates to approximately 14.7p per share.

Due to the depreciation of Sterling and the Euro against the US Dollar (the Company's reporting currency) in the second half of the financial year, the Company expects to incur an unrealized foreign exchange charge on its cash balances of approximately US$0.7 million in its income statement for the year ended 31 December 2008. Although this is a non-cash charge, it will have a substantial effect on the Company's reported profitability.

Growth in underlying profit

For the year ended 31 December 2008 the Board expects to report a loss before tax of approximately US$0.6 million, which includes the charge relating to currency movements described above and an estimated loss related to combined start-up expenses for the two companies in which NetDimensions invested during the year. Excluding these charges, the Board expects to record a profit before tax of approximately US$0.3 million (2007: US$0.15 million after the adjustment for listing costs). Management believes that the two 2008 company investments represent future growth opportunities for NetDimensions and that the decision to maintain core-operating capacity in the second half of the year has positioned the Company well for 2009.

Summary

In 2008 the Company delivered considerable revenue growth and continued to maintain a strong cash position without recourse to borrowings of any kind. The Board is confident that the Company's financial strength, market-leading technology and diversified client base provide an excellent foundation for continued growth.

Enquiries:

About NetDimensions

Established in 1999 and listed on the London Stock Exchange AIM (NETD), NetDimensions is a global provider of performance, knowledge and learning management systems. The company's key products include the Enterprise Knowledge Platform (EKP), the Enterprise Assessment Platform (EAP) and the Enterprise Content Platform (ECP). 

NetDimensions products and services help companies deliver and manage corporate training, career development, assessment and certification programs, and help clients around the world address growing regulatory compliance needs.

Recognized as one of the top-rated learning technology suppliers in overall customer satisfaction, NetDimensions has been chosen by multinational organizations worldwide including HSBC, ING and Cathay Pacific.

Enterprise Knowledge Platform and EKP are trademarks of NetDimensions Ltd.