Hong Kong-based talent management and training software specialist NetDimensions (NETD:AIM) is set to almost double its recurring revenues over the next two years. Investors should expect forecasts to be upgraded in the wake of next month’s finals (7 Apr) to reflect this growth potential.

The £26 million cap has ambitious plans for a land grab in its chosen niche, where it provides tools that help international organisations manage their top people. It is aiming for revenues of $50 million (£30 million) within five years, and is well on its way to achieving this with house broker Panmure Gordon forecasting 2013 sales of $16.1 million, up 17% on 2012’s $15.3 million outcome.

About $7.5 million of last year’s revenues should stem from recurring hosted services and support, yet this high-quality income stream is set to grow rapidly. Current expectations suggest recurring revenues will reach $13 million or so in 2015, and these estimates could be raised once the full-figures are released, perhaps to $14.5 million or more, and possibly speeding up a medium-term return to profit. There are optimistic price targets of 150p in the market.

At 70p we agree with the bullish consensus given the potential for upgrades.