Learning Technologies Group PLC Pre Close Trading Update (6966N)
22 January 2019 - 6:00PM
UK Regulatory
TIDMLTG
RNS Number : 6966N
Learning Technologies Group PLC
22 January 2019
22 January 2019
Learning Technologies Group plc
("LTG", the "Group")
(AIM: LTG)
Pre Close Trading Update
Profit and cash generation significantly ahead of
expectations
Learning Technologies Group plc, the leading integrated digital
learning and talent management services and technologies provider,
is pleased to announce a trading update for the year ending 31
December 2018.
The Board expects Group revenues to be c.GBP94.0 million (2017:
GBP52.1 million), with recurring revenues increasing to c.68%
(2017: 39%), driven primarily by the transformational PeopleFluent
acquisition in May 2018. The Board anticipates recurring revenues
to be c.71% on an annualised basis.
Organic revenue growth on a constant currency basis, excluding
the CSL contract, was c.+8% across Software & Platforms and
c.-8% in Content & Services against tough prior year
comparators. PeopleFluent revenues for the last seven months of the
year have been reduced, as expected, in line with LTG's accounting
policies under IFRS 15.
Adjusted EBIT is expected to be significantly ahead of
expectations at not less than GBP26.5 million (2017: GBP14.0
million) primarily as a result of improved margins across the Group
and operational synergies being realised from the successful
integration of PeopleFluent.
In May, as part of the PeopleFluent acquisition, LTG entered
into a new $63 million debt finance facility. As a consequence of
the strong improvement in margins and good operating cash
conversion, the net debt of the Group at 31 December 2018 is
significantly better than the Board's expectations at GBP11.5
million (2017: GBP1.0 million net cash). Available debt headroom
combined with gross cash at 31 December 2018 of GBP26.8 million
(2017: GBP15.7 million) provides the Group with substantial funding
to finance further acquisitions.
LTG delivered a strong sales performance in the final quarter of
2018 which has translated into positive momentum in the new
financial year across both the Content & Services and Software
& Platforms divisions.
An active pipeline of attractive international acquisition
opportunities supports the Group's ambition to continue to
consolidate the high growth corporate learning and talent
market.
The above results incorporate the alignment of PeopleFluent's
accounting policies with LTG, including the application of IFRS 15,
capitalisation of R&D and acquisition accounting adjustments
under IFRS 3. Further details will be provided with LTG's full year
results which are expected to be announced on 19 March 2019.
Jonathan Satchell, CEO of LTG, said:
"2018 has been another exceptional year of growth and
fundamental transition for LTG, as we evolve towards a high margin,
recurring revenue model with the majority of our revenue derived
from the US. This has been achieved by building a compelling
offering in the corporate digital learning and talent market and
our track record of improving the operating model and performance
of recent acquisitions, such as PeopleFluent and NetDimensions.
In November 2018, LTG announced a new strategic goal to achieve
run-rate revenues of GBP200 million and run-rate EBIT of at least
GBP55 million by the end of 2021. It is encouraging to announce
good early progress towards this strategic goal, alongside
excellent cash generation, a strong balance sheet and an active
pipeline of attractive acquisition opportunities."
ENDS
Enquiries:
Learning Technologies Group plc
Jonathan Satchell, Chief Executive +44 (0)20 7402
Neil Elton, Chief Financial Officer 1554
Numis Securities Limited (NOMAD and Corporate
Broker)
Stuart Skinner, Nick Westlake, Michael Wharton
(NOMAD) +44 (0)20 7260
Ben Stoop (Corporate Broker) 1000
Goldman Sachs International (Joint Corporate Broker) +44 (0)20 7774
James A Kelly, Adam Laikin (Corporate Broker) 1000
FTI Consulting (Public Relations Adviser) +44 (0)20 3727
Rob Mindell / Jamie Ricketts 1000
About LTG
LTG is a leader in the high growth workplace digital learning
and talent management market. The Group offers end-to-end learning
and talent 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's Alternative
Investment Market (LTG.L) and headquartered in London. The Group
has offices in Europe, North America and Asia-Pacific.
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END
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