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Learning Tech Gp PLC (LTG)


Friday 21 July, 2017

Learning Tech Gp PLC

Trading Update

RNS Number : 6897L
Learning Technologies Group PLC
21 July 2017

21 July 2017


Learning Technologies Group plc

("LTG" or the "Company")



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 £50 million and strong operating margins.  The Board expects the Group to achieve record revenues of not less than £20.8 million for the first half compared to £12.8 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 £11.5 million (31 December 2016: £5.3 million) and net debt was £6.1 million (31 December 2016: £8.5 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 £9.8 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."





Learning Technologies Group plc

Jonathan Satchell, Chief Executive

Neil Elton, Group Finance Director

+44 (0)20 7402 1554

Numis Securities Limited

Stuart Skinner / Michael Wharton (Nominated Adviser)

Ben Stoop (Corporate Broker)

+44 (0)20 7260 1000

Hudson Sandler LLP (PR Adviser to LTG)

Andrew Hayes / Bertie Berger

+44 (0)20 7796 4133


This information is provided by RNS
The company news service from the London Stock Exchange

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