ILX

A profits bounce and return to the dividend lists are in prospect for project management training software specialist ILX.

After bloodying its nose trying to turn its CTG classroom-based financial training acquisition into an e-learning operation, the AIM-quoted company is proving notably more successful driving its activities in the 'PRINCE 2' project management arena in overseas markets such as the Middle East, Africa and continental Europe.

After a £600,000 fall in group pre-tax profits to £1.1m in the year to March on turnover down by £900,000 to £14.7m, chief executive Ken Scott says international revenues rose 50% in the first half of 2010-11, with improved margins, and should account for 20 to 25% of the total in the full year. With PRINCE 2 achieving a pass rate of more than 90% for users, he adds ILX aims to increase software sales to more than 70% of turnover by 2015 and is moving its shares from the support services category on AIM to software.

Scott hopes the Government's spending review, by focusing the public sector even more on value for money, will increase PRINCE's business from state bodies, which now provide only 20% of its revenues. In 2009-10, the company had to pass its dividend as a condition of a bank facility for overseas expansion, but he says the intention is to restore it for the current year.

House broker finnCap sees pre-tax profits rallying this year to £1.4m on £15m turnover, with £1.8m pre-tax on the cards for 2011-12. That implies an attractive prospective yield of 5.8% for the shares at 26p, last mentioned by Growth Company Investor in April at 24p and still a fraction of earlier levels.