Fieldwork online training

RNS Number:1662N
Electric Word PLC
06 June 2005



June 6th 2005

                               Electric Word plc
                       ("Electric Word" or "the Company")


                    Acquisition of Fieldwork Online Training
           Strengthens Public Sector Management Information Portfolio


Electric Word, the specialist information publisher, today announces the
acquisition of the business and assets of Fieldwork Online Training ("FOT"), the
schools management e-learning division of Fieldwork Education Limited ("FEL").
The all-cash consideration comprises an initial payment of #249,000 and a
further performance-related cash payment depending on sales in 2005-6.  The
total deferred consideration payable is expected to be between #150-200,000 and
is capped at a maximum of #400,000.


FOT supports the professional development of school managers in the UK and
abroad with a suite of online training courses and a bespoke e-learning
platform. The business is highly complementary to Electric Word's current
portfolio of education information products including CPD Update, its
longest-established continuing professional development newsletter for schools.
FOT has site licences in over 200 schools and will benefit from access to
Electric Word's existing customer base including senior managers in 98% of
secondary schools in England and Wales. The acquisition will further enhance the
Company's renewable subscription-based revenues and its capacity for organic
growth. This fits well with Electric Word's strategy of combining organic and
acquired growth.


In the year to April 2005, FOT generated revenues of approximately #305,000
(unaudited) from a combination of direct sales of site licences to schools and
leasing the e-learning platform to larger partners such as the Education and
Manpower Bureau in Hong Kong and the University of Cambridge International
Examinations syndicate. The average revenue from new direct site licence sales
in 2005 has been over #1,000. Following marketing, sales and content investment
by Electric Word in the first year of ownership, FOT is expected to be earnings
enhancing in the second year and thereafter.


Investment in Continuing Professional Development (CPD) for teachers is at the
leading edge of the Government's education strategy for the next five years. A
new schools inspection regime starts in September 2005 which is founded on an
assessment of a school's ability to self-evaluate and prioritise professional
development needs. Also in September of 2005, the Teacher Training Agency is to
be re-structured as the Teacher Development Agency, putting greater emphasis on
the professional development of already-qualified teachers.


Commenting on the acquisition, Julian Turner, Chief Executive of Electric Word,
said:


"Fieldwork Online Training is an ideal acquisition for us to bolt on to Electric
Word's public sector management information business.  It will broaden the range
of existing and new products we can cross-sell to established schools customers
and allows us to benefit further from the Government's commitment to invest in
improving professional standards in education.


"The acquisition strengthens our position in the fast-growing and strategically
important area of electronic delivery in professional development.  I am also
delighted that FEL will continue to work with Electric Word as a sales agent and
partner in the future development of the business."


E-learning is a rapidly expanding part of the distance learning and professional
development training market. According to the EU's Directorate-General for
Education and Culture, e-learning expenditure as a percentage of total workplace
training doubled in size in five years from 10% in 2000 to 20% in the current
year. The EU predicts that the public sector e-learning market could currently
be worth Euro3bn (#2bn). The UK is expected to be the market in Europe with
greatest opportunity for development as suppliers build upon its English
language advantage.


Notes to Editors

Electric Word is a specialist information company, made up of two divisions:
Public Sector Management Information and Sport and Specialist Consumer. Electric
Word employs many formats, including newsletters in both paper and electronic
media and conferences, books and special reports. It has a particular strength
in renewable subscription products, which accounted for 72% of turnover last
year.



Enquiries:

Julian Turner, Chief Executive
Electric Word plc
020 7954 3470


Tim Spratt / Kim Muckle
Financial Dynamics
020 7831 3113


Richard Swindells
Panmure Gordon & Co
020 7459 3600




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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