Last checked at 24 Jul 2018 07:00
24 July 2018
Learning Technologies Group plc
("LTG", the "Group")
(AIM: LTG)
Trading Update and Notice of Results
Learning Technologies Group plc, the leading integrated e-learning services and technologies provider, announces the following trading update for the six months to 30 June 2018.
The Group's financial performance is in-line with market expectations, as it delivers on its strategic objective of building a global leader in technology-driven workplace learning and talent management solutions - a high-growth, fragmented market.
On 31 May 2018, LTG completed the transformational acquisition of PeopleFluent Holdings Corp ('PeopleFluent'). The Board is delighted with the progress of the integration of PeopleFluent and looks forward to providing a detailed update at the time of the Group's Interim results on the outcome of the 100-day integration programme and alignment with Group accounting policies.
The Board expects Group revenues (excluding PeopleFluent) of not less than £27.3 million for the first half of 2018 compared to £21.5 million in the first half of 2017. This represents an increase of c. 27%. On a constant currency like-for-like basis and excluding the impact of the CSL project, organic revenue growth was c. 10%. This growth has been driven in particular by a strong performance in LTG's Platforms division and we are especially pleased with the successful integration of, and new business wins by, the NetDimensions business.
Group operating margins remain robust, driving material increases in EBIT over H1 2017, and LTG continues to generate strong operating cash flows. Net debt was ahead of our expectations at £15.7 million (31 December 2017: net cash of £1.0 million).
With the acquisition of PeopleFluent, and consequently the greater proportion of recurring revenues from the Group's enlarged Platforms division, the higher visibility of revenues underpins our confidence in the full-year.
The Group's half year results will be announced on 25 September 2018.
Jonathan Satchell, Chief Executive, said:
"LTG continues to make excellent progress. I am delighted to see a significant increase in recurring revenues, broadening of our international footprint and deepening of our client base as we continue to evolve. The Group now has the capability to deliver comprehensive corporate learning and talent management solutions for its global client base. The first half of 2018 saw the transformational acquisition of US-based software platform PeopleFluent, and we are already seeing the complementary potential of PeopleFluent and our prior acquisition NetDimensions. We are enthused and energised by this first half performance."
ENDS
Enquiries:
Learning Technologies Group plc Jonathan Satchell, Chief Executive Neil Elton, Chief Financial Officer
| +44 (0)20 7402 1554 |
Numis Securities Limited (NOMAD and Corporate Broker) Stuart Skinner, Nick Westlake, Michael Wharton (Nomad) Ben Stoop (Corporate Broker)
| +44 (0)20 7260 1000 |
Goldman Sachs International (Joint Corporate Broker) James A Kelly, Adam Laikin (Corporate Broker)
| +44 (0)20 7774 1000 |
FTI Consulting (Public Relations Adviser) Rob Mindell / Jamie Ricketts | +44 (0)20 3727 1000 |
About LTG
LTG is a leader in the high growth workplace e-learning industry. The Group offers truly end-to-end learning solutions ranging from strategic consultancy, through a range of content and platform solutions to analytical insights that enable corporate and government clients to meet their performance objectives.
LTG is listed on the London Stock Exchange Alternative Investment Market (LTG.L) and headquartered in London. The Group has offices in Europe, the United States, Asia-Pacific and South America.