Companies:
EDD

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28/11/2008
Educational qualifications and assessment services group EDI has earned full marks after delivering a strong profit and cash performance for the year to September.
Sales advanced by 34% to �21.5m, including a �2.2m contribution from acquisitions, operating profits powered ahead by 58% to �3.34m and EDI increased net cash from operations by 137% to �4.46m, leaving year-end cash healthy at �3.23m and enabling a 27% rise in the total dividend to 0.42p.
Nigel Snook, chief executive, flagged up good levels of organic growth throughout the business, the successful integration of acquisitions and a sterling performance from the core UK vocational qualifications business.
Sales grew by 53% to �11.9m within the UK qualifications and assessment services arm, with November 2007 acquisition ASET, a vocational awarding body, broadening the customer base and service range and helping EDI target further education colleges.
In key international markets – South-East Asia and Germany – EDI performed well, while growth in its support and internet services operations was robust, with sales jumping by 30% to �3.7m.
EDI is now focusing on cross-selling extra services into existing clients and winning new business with training companies, further education colleges and employers, with its eye on select acquisitions should they come up. Striking just the right balance between confidence and caution, Snook also sees resilience in the education market, underpinned by ongoing investment in skills development by governments, employers and individuals alike.
Recommended by Growth Company Investor at 42.25p earlier this year, it is worth topping up holdings in EDI, trading on a miserly forecast price-to-earnings of 5.5, based on a forecast rise in PBT from �3.3m to �3.7m and earnings from 5.9p to 6.6p for this year.
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James Crux
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