LONDON (Alliance News) - Learning Technologies Group PLC on Thursday said it has made "significant progress" in its first half ended June 30, strengthening its margins, and said it was continuing to pursue acquisition opportunities in the US and the UK.
The e-learning technology company said it has improved working practices and increased scale during the period, which has strengthened its margins, and noted that it was making progress towards its strategic ambition of building a business with revenue in excess of GBP50.0 million, as well as delivering profit in line with its expectations.
Learning Technologies said it has created a "substantial number" of components for the blended courses project it won in December 2015 with UK Civil Service and said it will have delivered the entire library by the end of the year. The company said it expects to see revenue begin to accrue in the final quarter of 2016 with the majority of returns expected in 2017 and 2018.
The company said its Rustici Software LLC acquisition, made in January, has delivered substantial recurring revenue and has performed ahead of its expectations in the first half of the year.
Meanwhile, Watershed Systems Inc, in which Learning Technologies holds a 27% stake, is making strong progress, having signed up a number of clients.
Learning Technologies said it has maintained strong operating cash flows during the period, but has needed to invest in the upfront costs of the UK Civil Service project, and, at June 30, said its net debt was GBP9.9 million, compared to the net cash of GBP7.3 million on December 31.
While Learning Technologies said it was too early to identify any potential implications from the UK's "likely exit from the European Union", it said it was confident its strategic ambitions will ensure continued progress, noting that 32% of its business is undertaken with clients outside the UK.
The group said it also continues to pursue acquisition opportunities particularly in the US and UK.
"The group continues to invest in its industry leading portfolio of learning technologies and service offerings and the board is optimistic about the prospects in the second half of 2016 and beyond," said Chairman Andrew Brode.
Shares in Learning Technologies were up 3.1% at 31.44 pence on Thursday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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