Learning Technologies jumps as 2023 consensus met despite volume drop

(Alliance News) - Learning Technologies Group PLC on Friday said it had met its annual revenue and earnings expectations.

Shares in Learning Technologies jumped 18% to 82.05 pence each in London on Friday morning.

The London-based digital learning and talent management company said it expects to report 2023 revenue of GBP560 million, down 4.9% from GBP588.6 million the year before. Revenue consensus for the full year had been GBP560.2 million.

Adjusted earnings before interest and tax is expected at GBP98 million, down 1.9% from GBP99.9 million a year ago, in line with its forecasts of GBP98.0 million.

Reductions in revenue and earnings are the result of lower transactional volumes, the firm said.

Margins strengthened through the year, Learning Technologies said, which was driven by a "focus on profitability and a significant improvement within GPLX since H1 2023 following an initiative to improve the integration of Leo," it said.

This resulted in second-half margins for GP Strategies of around 15%, compared to 12% in the first six months of 2023, with an exit run-rate Ebit margin that is "slightly ahead" of previous guidance of around 17%.

Chief Executive Officer Jonathan Satchell said: "LTG has delivered a resilient performance in a challenging macro backdrop, underpinned by our SaaS and long-term contracts, representing 72% of [first half] 2023 revenues. Our continued focus on margin progression has supported a strong relative profit performance.

"Our strong balance sheet supports investment and accretive acquisitions that fit with our business model, as we continue to optimise our portfolio of businesses. Our reliable and strong cash generation creates optionality as demonstrated by our voluntary debt repayment in September 2023."

Learning Technologies will release its full-year financial results in April.

By Sabrina Penty, Alliance News reporter

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