In reporting its first full year results since its successful IPO in June 2006 the company has credited its strong financial results to good sales performance and growing market recognition for its leadership and innovation. Norkom has added 17 new clients during the year and secured continued incremental business from its existing client base.

The company reports the following key financials:

• Revenue up 38% to EUR25.0 million (2006: EUR18.1 million)
• Gross profit margin increased to 65%; (2006: 60%)
• EBITDA (earnings before interest, tax, depreciation and amortisation) up 40% to EUR4.5 million (2006: EUR3.2 million). EBITDA margin remained strong at 18% in 2007 (2006: 18%)
• Diluted EPS up 43% to 4.08 cents (2006: 2.86 cents)
• Net assets of EUR31.9 million (2006: EUR10.0 million)
• Net cash inflow from operating activities increased to EUR4 million (2006: EUR3.2 million)

Key business highlights for the year included the following:

• Revenue grew year on year by 38% and market penetration increased globally with 17 new named clients.
• North America revenue increased by 35% year on year, with a number of significant Tier 1 client wins including: Experian, Western Union and the Depository Trust Clearing & Corporation (DTCC).
• Continental Europe revenue increased by 40% during the year with new clients wins including Raiffeisen Zentralbank Osterreich and Credit Agricole.
• Ireland, UK and ROW increased revenue by 39% primarily through significant follow on business with existing clients, early penetration of new market sectors and expansion into Asia Pacific.
• Investment in research and development delivered improvements in core technology along with the release of two innovative market led solutions, Customer Due Diligence (CDD) and Enterprise Investigation Management (EIM). Early market demand for both solutions is strong with the 3rd EU Money Laundering Directive and risk based regulations driving demand for CDD, while escalating costs and operational losses are bringing clients to market for our EIM solution.
• The employee base grew by 54% to 210 as the company invested in additional key resources across all regions in support of ongoing international expansion and the development of robust regional teams to replicate success.
• Norkom's market recognition increased with the company winning a series of prestigious awards and being recognised as "outclassing its competitors" by internationally respected research firm Celent.

Commenting on the full year results Norkom's Chief Executive Officer Paul Kerley said: "In the year in which we successfully listed on the AIM and the IEX markets we have continued to deliver strong growth throughout our business; clear evidence of our ability to manage fundamental change while delivering excellent organic business growth. Our excellent gross margin enhancement provided the platform to make significant investments in both our regional development and in our end to end software development capabilities, while maintaining consistent EBITDA margins. Being able to make these investments in 2007 positions us well to take advantage of the numerous opportunities our market presents. Our market sector continues to grow, driven by both business and regulatory issues, increasing the demand for our solutions and expertise around the globe. We will remain focused on meeting the evolving demands of our client base, while innovating ahead of the curve to deliver solutions that provide measurable results and tangible improvements to clients' business performance."

The global market for financial crime and compliance solutions continues to grow, fuelled by increasing regulatory demands, escalating costs and the increased incidences of organised crime. Norkom's strategy focuses on providing clients with an end to end financial crime and compliance solution which is underpinned by a common technology infrastructure enabling them to evolve their use of the solution in line with both market and business needs. Our approach safeguards client's technology investments, increases the effectiveness of their operations and protects them from escalating losses to fraud. The ability of Norkom's solutions to impact financial losses while decreasing operational costs is proving attractive to a market where an estimated 84% of total spend is attributable to administration and personnel costs. Industry analysts forecast that technologies, such as Norkom's, can address this issue reducing operational costs by 15% annually.