Trading update

RNS Number : 5668T

Learning Technologies Group PLC

21 July 2015

 



Learning Technologies Group plc

Trading update

Learning Technologies Group plc ("LTG" or "the Group"), the leading e-learning company, announces its trading update for the half year ending 30 June 2015.

The Group is pleased to report profits are in line with management expectations.  We have made good progress during the first half of 2015 and, as expected, delivered both operational and financial synergies from the acquisitions made in 2014.  We have instilled good contracting discipline within the acquired businesses with a prudent stance on the cost base.  Consequently, margins are higher than anticipated and we remain on course to achieve our goal of building a £50m revenue business.

In April, LEO, the UK's largest e-learning services business, won a substantial contract in partnership with KPMG to create an important capability assessment solution for a central government department.  We anticipate that this successful project will be followed by further work in the second half of 2015.

LEO's emphasis on great customer service has seen other major customers renew and extend their relationship with the Group.  Civil Service Learning has extended its contract for a further year, whilst Jaguar Land Rover has procured LEO to act as strategic advisers for its learning and capability needs.

May and June were particularly successful months for new contract wins which have contributed to an even stronger order book for H2.  This gives the board confidence in the full year outcome.

LTG has a strong balance sheet with net cash of £2.9m as at 30 June 2015, having elected during H1 to settle £1.3m of deferred consideration for Preloaded in cash rather than equity.  The Group continues to actively pursue acquisition opportunities and is optimistic about our prospects for H2. 

It is anticipated that the Group will publish its interim results in late September. 

Andrew Brode, Chairman said:

"In the first six months of 2015 LTG has continued to build on the success of the prior year, delivering on its strategy of consolidating the fragmented e-learning industry.  Our customers are seeing the benefits of us delivering on our mission to 'Move learning to the heart of business strategy' through our expertise and insight, tailored content delivered across multiple platforms, and real-time feedback and analysis to assist management and learners.  In addition, our acquisition pipeline is particularly strong on both sides of the Atlantic." 

21 July 2015

Learning Technologies Group plc	[phone]
Jonathan Satchell, Chief Executive
Neil Elton, Group Finance Director
Numis Securities Limited	[phone]
Stuart Skinner/Michael Wharton (Nominated Adviser)
James Serjeant (Corporate Broker)
Instinctif Partners	[phone]
Matthew Smallwood

 

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