The Times 16nov201816 Nov 2018 07:42
Learning Technologies
Few things are more dispiriting than receiving an email from your HR manager requesting that you complete an online module on, say, GDPR, or the latest change to the money laundering regime (Simon Duke writes).
Learning Technologies, a software developer that helps companies to educate their staff, aims to put some sparkle into corporate training. As Jonathan Satchell, chief executive, puts it, too many educational tools are “boring and turgid”. In the era of smartphones, people demand the same slick user experience that they enjoy on Netflix, Spotify and other consumer apps.
Based in London, Learning Technologies has ridden this trend to become one of the darlings of the stock market. Its shares have risen ninefold over the past five years, giving it a valuation of more than £750 million. Yesterday it went some way towards justifying the hype after setting itself some punchy targets. It is aiming for revenues of £200 million a year and underlying earnings of £55 million by 2021, compared with a previous goal of £100 million of sales and £25 million in profits by 2020. It also announced that it was buying 70 per cent of Watershed, an open learning analytics platform, for as much as $12 million.
With Andrew Brode, the chairman, Mr Satchell bought and later renamed Epic, a digital training company, in 2007. They listed the company on the stock exchange through a reverse takeover in 2013 and have grown Learning Technologies organically and through acquisitions.
The shares have fallen from an all-time high of 166½p in late September after Mr Satchell and two fellow directors sold more than £40 million of stock. They took some chips off the table for “estate planning and portfolio diversification purposes”. After the sale, Mr Satchell retains an 11.3 per cent stake.
Yesterday Numis upgraded Learning Technologies to “buy” and slapped a 180p price target on the shares, a third above yesterday’s close of 120p. Yet it is rarely a good signal for prospective investors when directors sell shares, even if they have plenty of skin left in the game. For now, it would be better to avoid.
ADVICE Avoid
WHY Recent share sales by directors