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Nice move today. Now approaching 75% of where the SP should be.
Chunky monkey!
II adding again -
02-Feb-23 13:02:07 143.206 134,069 Buy* 142.80 143.20 191.99k O
02-Feb-23 13:02:07 143.206 134,069 Buy* 142.80 143.20 191.99k O
LTG defo deserves a rerate having demonstrated earnings ability over time.
01-Feb-23 09:10:16 142.50 110,000 Buy* 141.80 142.40 156.75k O
01-Feb-23 09:10:06 142.50 100,000 Buy* 141.80 142.60 142.50k O
01-Feb-23 09:10:06 142.50 100,000 Buy* 141.80 142.60 142.50k O
Brilliant interview with the Group CEO who exudes confidence in the future of the company and clearly demonstrates his complete grip in both the U.K. (now only 12% of revenue) and US. Great shame for long term holders of the shares that the overall markets have been in a fairly miserable in the last few days causing the potential substantial upward re rating of the shares to stall somewhat. Still, in my view, one of the very best companies listed on AIM, and currently materially undervalued.
Some big buys coming in - TU warmly received by II
An outstanding TU which further confirms what many of us long standing investors already know! This is a top quality business operating in an exciting established growth area, managed by a superb team which has delivered on all it’s ambitious promises every since the business floated - and is well on its way to delivering EBIT approaching £200m in 2025. WHAT IS NOT TO LIKE-A LOT.
Agree with Scooby. Deserves a MAJOR re rate.
For a growth company - according to Goldman, ths is growing at PE(f) of c12 - must be way too low for this quality company.
I reckon today's TU is a turning point for this company.
This is the IC article in Sept 22 - after interims. SP was 130p then -
Learning Technologies group is recession resistant
The company provides essential corporate learning which should stay in demand through a slowdown
September 22, 2022
By Arthur Sants
Expects to deliver ahead of analyst consensus for full year
Increased interim dividend
Learning Technologies Group (LTG) provides a 'blended' corporate education service to its clients. By ‘blended’, management means a combination of in-person and remote learning. As it is corporate tutorage, as opposed to say, maths or history, there is an element of necessity, particularly in matters of compliance.
LTG:LSE
Learning Technologies Group PLC
1mth
Today change
0.83%Price (GBP)
121.90
This may sound a little dry. However, it means LTG is reasonably recession-proof. Compliance training is essential for businesses as it is often mandated by regulators. The tail risk for businesses in cyber security and GDPR is also very high. A small expense on training could save them a large pay-out in the future.
Broker Goldman Sachs agrees with this thesis, saying that LTG is “insulated but not immune from macro”. Management admits there is some “discretionary” training, but that it makes up only around £30mn of revenue. Group revenue was £282mn for the half year, which gives it a margin of safety.
The only issue would be if customers went bankrupt. This seems unlikely given most of the customers are blue-chip names and based in America. The GP Strategies purchase provides a lot more exposure to the US market which will be more resilient than Europe next year. In the half year, £184mn of revenue was generated in the US – equal to 65 per cent of group sales.
SaaS and long-term contract revenue as a proportion of total revenue fell from 77 per cent last year to 71 per cent this year. The GP Strategies purchase diluted the recurring revenue proportion and it diluted group margins because GP does mostly in-person training, rather which is more costly. The group adjusted operating margin dropped 111 basis points to 15.6 per cent from last year.
Management is keen to point out that margins at GP Strategies are improving. Last year, the operating margin was 4.5 per cent before moving up to 10.5 per cent in the first half of this year. In May and June of this year it was 12.6 per cent. GP Strategies like-for-like revenue growth was 4.6 per cent on a constant currency basis.
LTG expects to deliver ahead of consensus expectations for the full year. Goldman Sachs upgraded its 2023 EPS forecast to 9.71p up from 8.74p. This gives an affordable looking 2023 PE of 12.2. A B2B product which is mostly essential to businesses is enticing in an economic downturn. We stick to buy.
Last IC View: Buy, 134p, 03 May 2022
Fab results. Upgrade very likely particularly given its strength in recessionary times
Good update.ahead of market expectations
Might be the uncertainty over the debt.
Similarly, CNIC, from my observations (I do not hold) , went through this kind of phase, where uncertainty pervades. This is until the company can prove that they can consistently perform time and time again.
So likewise LTG will need to demonstrate that their profits can cover their debts and reduction in debt. If they can + an ahead of expectation TU = rerating
Hope that you are right Scooby-but there does seem to be persistent selling of the stock which continues to hold down the SP.
I too anticipate a very encouraging TU before the end of the month. Let’s hope that it encourages some of the sellers to at least hold-in which case new demand may indeed encourage a re rating of the shares which have suffered a quite unworthy fall in the last 18 months whilst the business has gone from strength to strength.
IMO - LTG is going to rerate come the imminent TU - below is IC Sept 22 after release of the interims. Info below is based on SP of 130p - So PE(f) must be c11 - which is way too cheap.
Learning Technologies group is recession resistant
The company provides essential corporate learning which should stay in demand through a slowdown
September 22, 2022
By Arthur Sants
Expects to deliver ahead of analyst consensus for full year
Increased interim dividend
Learning Technologies Group (LTG) provides a 'blended' corporate education service to its clients. By ‘blended’, management means a combination of in-person and remote learning. As it is corporate tutorage, as opposed to say, maths or history, there is an element of necessity, particularly in matters of compliance.
LTG:LSE
Learning Technologies Group PLC
1mth
This may sound a little dry. However, it means LTG is reasonably recession-proof. Compliance training is essential for businesses as it is often mandated by regulators. The tail risk for businesses in cyber security and GDPR is also very high. A small expense on training could save them a large pay-out in the future.
Broker Goldman Sachs agrees with this thesis, saying that LTG is “insulated but not immune from macro”. Management admits there is some “discretionary” training, but that it makes up only around £30mn of revenue. Group revenue was £282mn for the half year, which gives it a margin of safety.
The only issue would be if customers went bankrupt. This seems unlikely given most of the customers are blue-chip names and based in America. The GP Strategies purchase provides a lot more exposure to the US market which will be more resilient than Europe next year. In the half year, £184mn of revenue was generated in the US – equal to 65 per cent of group sales.
SaaS and long-term contract revenue as a proportion of total revenue fell from 77 per cent last year to 71 per cent this year. The GP Strategies purchase diluted the recurring revenue proportion and it diluted group margins because GP does mostly in-person training, rather which is more costly. The group adjusted operating margin dropped 111 basis points to 15.6 per cent from last year.
Management is keen to point out that margins at GP Strategies are improving. Last year, the operating margin was 4.5 per cent before moving up to 10.5 per cent in the first half of this year. In May and June of this year it was 12.6 per cent. GP Strategies like-for-like revenue growth was 4.6 per cent on a constant currency basis.
LTG expects to deliver ahead of consensus expectations for the full year. Goldman Sachs upgraded its 2023 EPS forecast to 9.71p up from 8.74p. This gives an affordable looking 2023 PE of 12.2. A B2B product which is mostly essential to businesses is enticing in an economic downturn. We stick to buy.
Last IC View: Buy, 134p, 03 May 2022
£1.50 SP this month? Fair chance in my opinion.
Couldn’t agree more Concept. I have held shares in this company for several years during which time the company has grown impressively both organically and by well considered strategic acquisitions, most of which have been in the USA and all appear to have been quickly and effectively incorporated into the whole.
Quite why the rating on the shares has fallen quite so dramatically I have absolutely no idea, but believe that quality will out and continue to hold, having even added a few more during recent periods of serious weakness.
Expecting this company to have had a very strong year, with the majority of their earnings in US dollars. Hopefully a strong trading update early in ‘23 will confirm-but whether the lethargic markets will show the slightest interest, remains to be seen.
What’s the idea of people just buying single shares? The cost to buy is more than a single share,makes no sense.
Topped up! Worth min 150-160p in my eyes!
Got my very small dividend today,£9 ,might buy some fish + a chip.
Trying to bounce back! Only a waiting game now
Time to recover
Iv been in this share and felt the pain when markets pulled it down due to market sentiment. Same thing will unfortunately happen again. Looking at this closely to start my position. We could look at a re-trace back in the 90s. For lth…. Don’t give up.
Totally unfairly, along with many other companies , caught up in a market melt down. Likely to make over a £100m profit this year, with very strong cash generation and a clearly most able management team-yet trading on an ever decreasing PE. Must be vulnerable to an attempted take over by private equity or a US corporation seeking to leverage a super strong dollar.
Brilliant results off to a great start!