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Minuscule e-learning play Intellego is morphing from a software reseller to a ‘solutions provider’, but doubts surround its chosen markets of retail, property and transport.

Providing software to train employees in business processes and regulatory compliance, the company constricted losses by 24% to £408,118 in the year to March as revenues grew 59% to £1.7m. The figures benefited from the 2006 acquisition of eMedit, though the December addition of Copia, a retail industry training and e-learning specialist, also helped.

The eMedit purchase has enabled the company to move from the distribution of third-party products to the generation of its own content for the pharmaceuticals market. This market penetration has been enlarged by Zenosis, a specialist publisher of regulatory e-learning courses, acquired for £50,000 in cash since the year-end. Chief executive Andy Green intends to reinvigorate Zenosis; having already slashed overheads he now aims to beef up its sales efforts.

Intellego's expertise in the financial sector, so far centred around providing training in the new Home Information Packs (HIPs) to estate agents, has also been augmented by another addition in the new financial year. Green says PDP – whose customers include such well-known names as HSBC and Northern Rock – has ‘great technical knowledge’ but was ‘too small to win many contracts’.

Moving in the right direction it may be, but for now Intellego’s diminutive stature and exposure to under-fire sectors are concerns. Risk-averse investors should probably steer clear for now.

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Intellego Holdings	AIM	£1.47m	1.12p	-0.05p
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