LONDON (Alliance News) - Learning Technologies Group PLC on Tuesday said it swung to a small pretax loss in the first half of 2016 due to higher finance costs and acquisition-related expenses, but revenue increased.
The e-learning technology and services provider said it made a GBP65,000 pretax loss in the half to the end of June, compared to a GBP209,000 profit a year prior. The loss was driven by higher finance costs and charges related to its acquisition of digital learning company Rustici Software, which it bought in January for USD26.0 million.
That acquisition resulted in revenue growing to GBP12.8 million in the first half, up 52% from the GBP8.4 million it made a year earlier. Rustici is performing ahead of expectations, the company said, and has delivered a strong stream of recurring revenue. Recurring revenue now accounts for a quarter of Learning Technologies' total sales, up from 8.0% in the first half of 2015.
Elsewhere, the company said it had made good progress in its UK Civil Services Learning project, a joint venture with accountancy giant KPMG LLP, with revenue from this expected to accrue in the fourth quarter of 2016 and accelerate in 2017.
The firm added it is eyeing further possible acquisition opportunities in the UK and the US.
The company raised its interim dividend by 40% to 0.07 pence per share from 0.05p a year prior.
"We will continue to capitalise on our existing strengths to deliver further profitable organic growth, whilst seeking new acquisition opportunities to extend the group's reach and scale," said Chairman Andrew Brode.
Shares in Learning Technologies were flat at 34.00p on Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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