Epic CEO backs Higher Education Minister on Foundation degrees

(April 1, 2001)
By Ben Willmott

Published: April 1, 2001
Financial Mail on Sunday

After the collapse of technology shares, investors are right to be nervous of any company that operates in a sector with an 'e' prefix, such as e-commerce and e-fulfilment. But Epic Group is an exception.

The e-learning company produces tailor-made training and education programmes for corporate clients, such as Lloyds TSB and British Airways, and is building its business in the public sector, where customers include the Inland Revenue and local authorities.

Though it uses the internet and company intranets as delivery systems, Epic's content is traditional educational and training material.

Epic is benefiting from the trend for companies to outsource training as they cut costs. The European e-learning market is forecast to grow from £50 million last year to £2.8 billion by 2004.

Midas verdict: In the first half of its current financial year Epic made profits of £567,000, and is forecast to make £1.48 million in the full year with earnings per share at 6.1p.

Its growth story has not gone unnoticed and the shares, at 323.5p, value the group at £79 million. But as there is little competition, the shares are a speculative buy.