Pre Close Update

RNS Number : 3746M

Learning Technologies Group PLC

20 January 2016

 

Learning Technologies Group plc

("LTG", "the Group" or "the Company")

Pre Close Update

Learning Technologies Group plc, the leading e-learning company, is pleased to announce a trading update for the year ended 31 December 2015.

Profit for the year is in-line with expectations with the Group having generated excellent EBITDA margins in the second half of the year.  Cash generation remains strong with net cash at 31 December 2015 of £7.0 million (2014: £4.4 million).  The Group has no debt.

The year saw the Company continue to build on the foundations that were laid in 2014.  2015 included the acquisition of Eukleia Training Limited ("Eukleia") in July which added specialist governance, risk and compliance expertise to the Group, particularly in the financial services sector. The integration of Eukleia is complete and the business is trading in line with expectations. 

In December 2015, LEO Learning Limited, 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").  This is a landmark deal which endorses the Group's strategy to build a multi-discipline e-learning business of scale.  The contract is for a period of 3 years, with CSL having the option to extend the agreement by a further year.  Delivery of the initial learning components will commence in March 2016 and be complete by September 2016.  The financial implications for the Group are expected to be significantly beneficial in 2016 and transformational in 2017 onwards.

In addition to CSL, recent contract wins provide LTG with a strong platform as it enters 2016.

The Group continues to pursue exciting new strategic contract opportunities and is actively seeking to acquire suitable businesses as part of its commitment to build an international e-learning business with revenues of at least £50 million and EBITDA margins in excess of 20 per cent.  We expect to update the market on progress during Q1 2016.

It is anticipated that the preliminary results for the year ended 31 December 2015 will be announced towards the end of March 2016. 

Andrew Brode, Chairman said:

"LTG has made good progress in 2015 delivering on its strategy of consolidating the fragmented e-learning industry and is optimistic about acquisition opportunities on both sides of the Atlantic. 

As demonstrated by recent contract wins, customers value the comprehensive blended learning services, strategic insight and solutions, and international reach, scale and responsiveness that the Group is able to offer."

20 January 2016

Enquiries

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

 

END

 

 

TSTBCGDBLGBBGLC