UK -- Xpertise Recovering From Y2K and Windows 2000 : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

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10:29:25, Tue 11 April 2000

Title: Xpertise Recovering from Year 2000 and Windows 2000

IT training company Xpertise Group has suffered from the industrys two major bugbears, Year 2000 and Microsoft, and the result is lower profits and an unfilled order book.

In line with expectations, the training group saw a steep decline in demand for IT training in the last quarter of last year. As companies grappled with fixing Year 2000 problems, old Cobol programmers were more in demand than anyone learning new economy skills, and training and contract developer suppliers were among the hardest hit.

To add to its woes, Xpertise was affected by a delay in the general availability of Microsofts Windows 2000.

The company saw net losses of #171,000 for the year to 5 January, on turnover of #3.7 million. Comparisons with previous years are difficult, since Xpertise was formed on the last day of the financial year last year by reversing in to cash shell DalKeith Inns, which bought Xenon Training from Datrontech and turned it into Xpertise.

It has repeated the act this year, buying Direct Computer Training (DCT) and DCT resources at the end of this last financial year, so this years balance sheet reflects DCTs net assets but none of its profits.

Xpertise paid a total of #4 million or DCT, of which #2.5 million was in cash and #1.5 million through the issue of 5 million new shares. It also paid #1 million cash for DCT Resources and may pay a further #2 million based on the two businesses achieving certain performance targets.

DCT specialises in government-funded IT training.

Xpertise is hoping to capitalise in future on the predicted shortage of skills in the IT sector, which is expected to double by 2003.

The company is also setting up an online training business, Xpertise.Online, to complement its classroom-based training.

Shares were down 4p at 52.5p this morning. )2000


-- (, April 11, 2000

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