Learning Technologies Group PLC Pre Close Update (2987U)
17 January 2017 - 6:00PM
UK Regulatory
TIDMLTG
RNS Number : 2987U
Learning Technologies Group PLC
17 January 2017
17 January 2017
Learning Technologies Group plc
("LTG" or the "Company")
(AIM: LTG)
Pre Close Update
Strong cash generation and profit ahead of expectations
Learning Technologies Group plc, the leading e-learning company,
is pleased to announce a trading update for the year ended 31
December 2016.
Financials
Profit for the year was ahead of market expectations, with
EBITDA margins firmly ahead of LTG's strategic ambition of 20 per
cent.
The Group has increased its recurring revenues to c27% in 2016
from c10% in 2015. Over the same period, revenues generated outside
of the UK have risen from c12% to c36%. These trends underpin the
Group's successful development of new learning technology solutions
and expansion into new geographical markets.
Cash generation remains strong with gross cash at 31 December of
GBP5.3 million and net debt of GBP8.5 million (2015: net cash
GBP7.3 million), after significant operational investment.
In January 2016, the Company acquired Rustici Software LLC
("Rustici"), the acknowledged global leader in digital learning
interoperability which enables online content and management
systems to communicate and work together. The Board is pleased to
report that, since acquisition, this business has performed
significantly ahead of expectations.
In December 2015, LEO, in a strategic alliance with KPMG UK LLP
("KPMG"), won a formal tender process to provide learning and
development services for the entire UK Civil Service ("CSL"). In
less than a year, we have redesigned and built the entire core
curriculum for 400,000 civil servants, creating a more engaging and
'blended' offering for its learners. Revenues have begun to accrue
in 2016 in line with our plans and will grow significantly in 2017
onwards.
Preloaded and Eukleia are engaged in large scale, global
learning campaigns in 2017, for a fast food restaurant chain and a
global bank respectively. gomo continues to build on its success by
adding enterprise customers such as the Foreign and Commonwealth
Office, Telefonica, the BBC, Fujitsu and Vodafone.
Acquisitions
LTG continues to pursue acquisition opportunities to diversify
and deepen its strategic consultancy, creation, delivery, and
analytics offering in the learning technologies market.
Andrew Brode, Chairman said:
'The Group has made excellent progress during 2016. In addition
to the acquisition and strong subsequent performance of Rustici in
the US, LEO has successfully completed the largest contract that it
has ever undertaken. The revenues from this, combined with other
strategic wins, will have a transformational impact on profits in
2017 and beyond."
"LTG has made great strides in delivering on its strategic
objectives to create an international e-learning business of scale.
EBITDA margins are now firmly in the mid twenties, underpinned by
strong recurring revenues and expansion of sales outside our core
UK market, and we have entered the new financial year with
significant momentum. The Board is confident of delivering further
strong performances given the Group's industry leading capabilities
in a fast growing sector."
It is anticipated that the Group's preliminary results for the
year ended 31 December 2016 will be announced at the beginning of
April 2017.
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 Limited +44 (0)20
Cat Valentine / Bertie Berger 7796 4133
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTBCGDBGGBBGRL
(END) Dow Jones Newswires
January 17, 2017 02:00 ET (07:00 GMT)