E-learning company ThirdForce says its revenues, which had fallen in the first six months of 2005, recovered in the second half of the year. In a trading statement this morning, the company says it now expects to report full year revenues of €12.6m, up 5% on 2004 with the help of a partial contribution from Creative Learning Media.

However, it says that operating profits for the full year will be substantially lower.

ThirdForce has been implementing a strategy to diversify its business beyond IT training into online assessment, adult literacy and work place learning. This diversifying has involved 'considerable' investment in 2005 with the company building two new divisions - EP assessment and EP skills for life. It has also acquired Creative Learning Media in the UK and redesigned its core IT skills software.

This process is expected to continue at a similar level this year. The company says revenue associated with new product areas has progressed more slowly than anticipated and the long term positive sales outlook necessitates a higher level of product investment.

Today's trading statement says that as a result of this investment programme, ThirdForce is well positioned to return to its strong growth path and the company anticipates a 50% increase in turnover in 2006.

'This will have a significant positive effect on profits, however, normalised operating profit margins will not return until 2007 when the current product investment is completed,' the statement concludes. 

ThirdForce shares closed up two cent at 30 cent in Dublin.