Argus: Epic gives lesson in record figures

by Stefan Hull

Epic has exceeded expectations by posting record full-year figures.

The Brighton-based e-learning company has enjoyed growth in the online learning market, particularly in the public sector, and better than expected sales and profits.

The company, which was founded 20 years ago, recorded a pre-tax profit of £1.8 million - up 125 per cent from £0.8 million last time and significantly more than the company's forecast of £1.4 million - on a 21 per cent increase in turnover to £8.7 million.

It is to pay a dividend of 1.4p to shareholders and has £11.7 million in the bank, 24 per cent up on last year.

Chairman Michael Inwards said expansion in the online market has enabled Epic to make "significant progress".

He said: "The market is maturing with e-learning spreading from corporate training into all areas of the public sector.

"It is now becoming mainstream with more sophistication such as blended learning, collaborative learning, simulations and games in learning.

"We have anticipated all these changes to maintain our position as market leader."

Public sector contracts accounted for 51 per cent of revenue, private sector was 44 per cent and the remaining five per cent came from product sales.

Chief executive Donald Clark said: "There has been a higher public sector spend and a couple of things are worth noting about it.

"The Education Secretary Charles Clark has just issued a consultation paper - Towards a Unified e-Learning Strategy - which makes it clear how important e-learning is. Also, the public sector has got better at paying on time and this is making it easier for smaller companies to do business."

Epic's strong cash position also helped it do business with public sector organisations, which tended to choose companies with strong balance sheets to work with.

Mr Clark said: "The plan is to make acquisitions this year but that doesn't mean it will definitely happen.

"We have a list of criteria and we've looked at lots of opportunities but the main focus is any acquisition must bring clear, added value.

"We've broadened the scope of our search for acquisitions but we're still looking for companies that are solid, profitable and with plenty of potential for growth - a bit like us.

"But it's not so easy to find companies like that in this bearish environment.

"We promised growth and that's what we've done. We don't expect a big dog leg in growth but, then again, we don't expect a big shrinkage either."

[Back to top]