19 March 2010

AdVal confident after £388,000 write-off

17/07/2001

Aim-listed e-learning group AdVal says it is 'confident' despite losing £181,000 last year, and claims a 'record number of prospects are in the pipeline', writes James Crux.

AdVal (ADL) says it has an order book of £2.2 million with a record number of prospects in the pipeline. New clients signed up in the year to March include RM Automotive, The College of Law, Eversheds and London Underground, and more recently Sweet & Maxwell and Rank Leisure.

Chairman Sir Jeremy Hanley says 'we are confident for the group's further development and for the outcome for the full year'. This is in spite of 2000-01 losses of £180,732 after exceptional costs.

The losses arose because the board decided to write off £388,119 of software development costs expended in previous years. Before exceptional costs, AdVal made a pre-tax profit of £207,387 and more impressively, before interest, tax and depreciation, earnings rose 92 per cent to £583,000.

Sales were boosted by 44 per cent to £4.73 million, helped by the company's joint venture with Pearson FT Knowledge, KeyKnowledge. This is an 'off-the-shelf titles provider' formed in January, whose first four titles include a tool to help buyers in product selection, and another package focusing on the call centre market.

After taking a stake in connect2law, AdVal bought out the other shareholders in favour of an exclusive deal with the The College of Law. The first course, a professional skills course, is currently under development and other programmes include an anti-money laundering programme for Denton Wilde Sapte and an induction programme for Eversheds staff.

Acquisitions after the year end included Testline, which provides software testing for e-learning programmes and IT infrastructure. Another, Terra Nova Media, provides internet services for businesses.

On the news the shares jumped 4.5p to 46p. Guy Peters at Old Mutual Securities says that for the current year, he will be looking for sales of £7.6 million, a pre-exceptional pre-tax profit of £800,000, and earnings of 2.4p.

This puts the company on a prospective p/e ratio of 19.1, slightly lower than the sector average of 22.9.

Sector: General Industrials

Companies: Adval Group

Subscribe today

£7,277

That’s what you would have in your portfolio if you had invested £6,000 into the six Company Watch recommendations in our April 2009 issue.

Subscribe now and receive a 50% discount

AIM in Review 2010

Growth Company Investor, in association with the London Stock Exchange, presents the most wide-ranging and detailed examination of the AIM market: AIM in Review 2010. For more information and to order, click here or contact our marketing team on 020 7250 7056.

Directors' Pay on AIM 2009 – ­ a Growth Company Investor publication in association with Deloitte

The report reveals the top-earning chief executives and remuneration levels at AIM's most profitable and fastest-growing companies. It also examines constituent parts, including basic salary, bonus, pensions, benefits and share-based payments. To order click here.

Free – Latest Stock Recommendations

Free access to the latest AIM stock recommendations and news from the award-winning Growth Company Investor team. Receive our tips on what stocks to buy direct to your inbox every Tuesday and Friday. Find out more today.

Select your level of risk and we select the funds

Cautious? Positive? Adventurous? Choose between three levels of risk for a fund of funds from Sharefunds, our sister company. Click here for more information.

The AIM Guide 2009/10

The brand new, fully updated AIM Guide 2009/2010 is now available to purchase. AIM Guide is the only fully comprehensive guide to AIM and is regarded as 'must-have' for any serious investor or professional interested in the market for young, fast-growing companies.   Order your copy today and benefit from a £10 discount!

VCT Special Report 2009

This report's principal aim is to provide business owners seeking funding with information about the amount of funds that VCTs have to invest. Click here for more information.

Cash Shells Special Report 2009

Business XL, the award-winning monthly magazine for growing companies, is delighted to announce the launch of a new study on cash shells. The research provides a comprehensive overview of cash shells on AIM, companies that have become a significant feature on the AIM landscape. Buy the Cash Shells 2009 Research Report today or email Halid Delkic to obtain a free two-page abstract.

Latest small-cap and growth company news

Daily coverage of small-cap company stocks on London's junior markets AIM and PLUS, breaking news, stock research and latest share price information for investors. Full sector coverage with all the latest news on smaller listed companies, updated several times a day with financial reports, trading statements and links to further web resources.

Popular News

Latest News

Brainspark takes football stake 19/03/2010

As foreshadowed in the latest Growth Company Investor, investment minnow Brainspark is buying into Italian football club AC Ancona.

Tags: AIM , Deals & contracts , Fundraisings

Sector: General Financial

Companies: Brainspark

Avocet targets growth after setback 18/03/2010

Gold producer Avocet Mining hopes its Wega acquisition will take 2010 group output to 200,000 oz after a flat nine months.

Tags: AIM , Commodities , Mergers & acquisitions

Sector: Mining

Companies: Avocet Mining

New hope for China Evoline 18/03/2010

AIM shell China Evoline is understood to be contemplating the injection of some Chinese mining assets.

Tags: AIM , Boardroom moves , Mergers & acquisitions

Sector: Technology Hardware & Equipment

Companies: China Evoline

More News

Sectors

Vitesse Media Events