Bombed-out IT training group Xpertise reduced its pre-tax deficit from £668,000 to £245,000 for calendar 2005 in a highly competitive market, on turnover lifted 16% to £15.3m.

The deal-hungry group achieved a turnaround from losses of £349,000 to a £201,000 profit at the operating level (before exceptional costs and goodwill). A charge for due diligence pertaining to the aborted takeover of a major UK rival (which would have made Xpertise the market leader) and other exceptional costs combined to keep the company in the red. Encouragingly, year-end net cash burgeoned from £989,000 to £1.28m, as the business generated £534,000 from its operations.

Last year Xpertise, which delivers training through its nationwide network of centres, as well as at customer locations, carried out 61,000 training days for some 17,000 delegates, providing programmes for the likes of Carphone Warehouse and BT. The group has continued its acquisition drive in the New Year, paying £220,000 in cash and shares in January for 'niche' IT training concern Waterman’s, which provides ‘soft skills’ training like personal and team development training. Managing director Ian Johnson is eyeing further 'corporate opportunities' in a highly fragmented £400m UK IT market, of which Xpertise has around 3.8%. He would like to add other soft skills training businesses, particularly providers of project and service management, to the group.

At 1.07p – down from 1999's float price of 25p – the shares suggest Xpertise still has more hard work to do to re-establish its former rating. Xpertise looks a decent consolidation story, yet there are more compelling growth stocks around. Avoid for now.

Xpertise Group	AIM	0pm	p	p
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Other company articles:
Private equity backs Xpertise bidder			22/08/2008
Trading cheer from Xpertise			02/07/2008
Xpertise doubles profits			28/02/2008
New contracts lift Xpertise			14/08/2007
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