Learning Technologies Group PLC Trading Update (6897L)
21 July 2017 - 4:00PM
UK Regulatory
TIDMLTG
RNS Number : 6897L
Learning Technologies Group PLC
21 July 2017
21 July 2017
Learning Technologies Group plc
("LTG" or the "Company")
(AIM: LTG)
Trading Update
Learning Technologies Group plc ("LTG" or "the Group"), the
leading integrated e-learning services and technologies provider,
is pleased to announce the following update for the half year
ending 30 June 2017.
The Board is pleased to report that LTG has made excellent
progress over the period delivering on its strategic ambition of
building an international business with annualised revenues in
excess of GBP50 million and strong operating margins. The Board
expects the Group to achieve record revenues of not less than
GBP20.8 million for the first half compared to GBP12.8 million in
the first half of 2016, an increase of 62.5%.
On 20 March 2017, LTG declared its offer for NetDimensions
(Holdings) Limited ("NetDimensions"), the integrated enterprise
talent management software platform provider, unconditional in all
respects. NetDimensions' proprietary LMS platform enhances the
range and scope of LTG's services across the globe, whilst
complementing our existing portfolio of businesses and further
accelerating growth.
The Board is pleased to report that the integration of
NetDimensions into the Group has been successfully completed on
time. The transformation program will continue during the second
half of 2017, with the full-year synergies and settled cost base
being realised from the beginning of 2018 as planned.
NetDimensions' customer support teams have been relocated to the
geographical territories that they serve, hosting services are
being migrated to our centre of excellence in Nashville, and we are
investing in our core technology team headquartered in Hong Kong.
We have hired a new Global Head of Sales, and we are investing in
the development of NetDimensions' reseller network, as well as
leveraging Group central services such as marketing, HR and IT
support.
The strategic progress in the first half of the year has been
underpinned by strong organic growth in LTG's other businesses and
our period end order book is at record levels, demonstrating
excellent momentum as we enter the traditionally stronger second
half.
LEO, the Group's comprehensive solutions provider, has achieved
50% growth in sales compared with the first half of 2016 and built
a strong sales pipeline for the second half of the year. The Civil
Service Learning contract, being delivered alongside our strategic
partner KPMG UK LLP, is progressing well and in line with
expectations.
Preloaded, our 'games with purpose' division has performed very
well, delivering a prestigious VR learning simulation for the
Science Museum and Eukleia is seeing an increase in demand with the
introduction of MiFID II regulations.
Our software licence businesses are performing strongly; gomo
has won a number of key enterprise contracts with its industry
leading cloud-based multi-device authoring tool whilst Rustici has
continued to expand its recurring licence business at a pace beyond
our expectations.
Together with NetDimensions, the Group continues to build
recurring revenues and to diversify our business outside of the UK
market.
LTG continues to drive strong operating cash flows. At 30 June
2017 gross cash was GBP11.5 million (31 December 2016: GBP5.3
million) and net debt was GBP6.1 million (31 December 2016: GBP8.5
million). After adjusting for funds due to remaining NetDimensions'
shareholders and net payments due as a result of the exercise of
share options just prior to the end of the period, adjusted net
debt was GBP9.8 million at 30 June 2017.
The Group's Interim results will be announced on 18 September
2017.
Andrew Brode, Chairman of LTG, said:
"LTG continues to make excellent progress as the market leader
in the high growth and dynamic e-learning sector. Our acquisitions,
including most recently NetDimensions, have all been integrated to
plan as we build out our full-service learning technology offer.
This strategic progress has been accompanied by strong underlying
organic growth as we harness and integrate these technologies to
deliver improved outcomes for our clients. As a result of the
momentum in the business, the Board looks forward to the second
half and beyond with confidence."
Enquiries:
Learning Technologies Group
plc
Jonathan Satchell, Chief
Executive
Neil Elton, Group Finance +44 (0)20
Director 7402 1554
Numis Securities Limited
Stuart Skinner / Michael
Wharton (Nominated Adviser) +44 (0)20
Ben Stoop (Corporate Broker) 7260 1000
Hudson Sandler LLP (PR Adviser
to LTG) +44 (0)20
Andrew Hayes / Bertie Berger 7796 4133
This information is provided by RNS
The company news service from the London Stock Exchange
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