Learning Technologies Group PLC Pre-Close Update (4425C)
January 22 2018 - 1:00AM
UK Regulatory
TIDMLTG
RNS Number : 4425C
Learning Technologies Group PLC
22 January 2018
22 January 2018
Learning Technologies Group plc
(AIM: LTG)
Pre Close Update
Profit and cash significantly ahead of market expectations
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 year ending 31
December 2017, ahead of the announcement of its full year results,
which is expected on 19 March 2018.
The Board expects Group revenues to be not less than GBP51.8
million (2016: GBP28.3 million). This excellent performance has
been driven by exceptional underlying organic revenue growth of
more than 20% (excluding the CSL contract in partnership with KPMG
UK LLP), with recurring revenues increasing to 39% (2016: 27%)
primarily as a result of the strong growth in the Group's software
businesses, and a maiden contribution from NetDimensions, acquired
in March 2017.
Adjusted EBIT is materially ahead of market expectations at not
less than GBP14.0 million (2016: GBP7.0 million) primarily as a
result of strong growth in services and software licence sales, the
successful integration of NetDimensions, and continued cost
control.
The Group's cash position is also significantly ahead of market
expectations, primarily as a result of good operating cash
conversion, the successful integration of NetDimensions, and the
exercise of employee share options. At 31 December 2017 gross cash
was GBP15.7 million (2016: GBP5.3 million) and net cash was GBP1.0
million (2016: net debt of GBP8.5 million).
LTG continues to enjoy an encouraging pipeline of international
acquisition opportunities as it seeks to diversify and deepen its
strategic consultancy, creation, delivery, and analytics offering
in the fast growing learning technologies market.
Andrew Brode, Chairman of LTG, said:
"2017 has been another exceptional year. LTG has experienced
robust organic revenue growth during the year and, along with the
successful acquisition and integration of NetDimensions, now enjoys
a higher proportion of recurring revenues and an increasingly
diversified client base both in terms of market sectors and
geographical reach.
LTG's scale and expertise allows it to work closely with large
blue-chip corporates and national governments as their trusted
strategic partner, who are increasingly embracing e-learning
solutions as evidenced by the record order book we carry into
2018.
In October we announced our new strategic objective to deliver
run-rate revenues of GBP100 million and run-rate EBIT of GBP25
million by the end of 2020, financed through the use of internally
generated operating cash flows and prudent debt financing,
minimising dilution for shareholders. These impressive results for
2017 are an encouraging indicator of the progress that is being
made towards this ambitious goal."
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 LLP (PR Adviser
to LTG) +44 (0)20
Dan de Belder / Bertie Berger 7796 4133
About LTG:
LTG is a leader in the high growth workplace e-learning
industry. The Group offers truly end-to-end learning 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 Alternative
Investment Market (LTG.L) and headquartered in London. The Group
has offices in Europe, the United States, Asia-Pacific and South
America.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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