Shares digital

January’s profit warning has hammered shares in e-learning software expert NetDimensions (NETD:AIM) and left them languishing at 18.5p, miles below May 2007’s 62p flotation price. Yet a contract win from Endsleigh Insurance last week suggests the sell off could be over done, especially as a £4.6 million market capitalisation is underpinned by at least $6.4 million in cash on the

balance sheet.

‘[Last year] we listed, made a profit, were cash generative, our revenues grew, we added two new products to sell into industry verticals, we added more sales people and we changed how we deal with our channel partners,’ explains chief executive Jay Shaw (pictured above). ‘We ended the year with more cash than we have ever had and in many ways we had a banner year.’

One of the deals which slipped and prompted the profit alert closed in January, although Shaw remains vigilant, as compliance-focused industries such as financial services and airlines are the Hong Kong firm's current areas of primary focus.

Shares says: Risky client markets but lowly valuation means shares are worth a speculative punt.

by: Russ Mould