Learning Technologies Group PLC Full Year Trading Update and Notice of Results (3722A)
January 21 2020 - 1:00AM
UK Regulatory
TIDMLTG
RNS Number : 3722A
Learning Technologies Group PLC
21 January 2020
21 January 2020
Learning Technologies Group plc
("LTG", the "Group")
(AIM: LTG)
Full Year Trading Update and Notice of Results
Profit and cash comfortably ahead of expectations
Learning Technologies Group plc, the provider of services and
technologies for digital learning and talent management, is pleased
to announce a trading update for the year ending 31 December
2019.
The Board expects Group revenues to be up c.38% to c.GBP130.0
million (2018: GBP93.9 million). Recurring revenues increased to
c.73% (2018: 68%), driven by strong ongoing performance in the
Software & Platforms division, a full year contribution from
PeopleFluent and Watershed, and the acquisition of BreezyHR in
April 2019. Excluding PeopleFluent, LTG delivered organic revenue
growth on a constant currency basis in both the Software &
Platform and Content & Services divisions.
PeopleFluent delivered revenues of c.$93.0 million in 2019,
ahead of previously announced expectations of c$91.0 million,
supported by a significantly improved retention rate for its
software licences and a good sales performance by Affirmity. This
underscores the Board's confidence that, as guided at the time of
the acquisition in 2018, PeopleFluent will return to growth in
2020.
Adjusted EBIT* is expected to be comfortably ahead of market
expectations at not less than GBP41.0 million (2018: GBP26.0
million), an increase of c.58%, primarily as a result of a
continued trend of improved margins across the Group and synergies
being realised from the successful integration of acquisitions.
The Group's net cash position at 31 December 2019 of GBP3.8
million (2018: GBP11.5 million net debt) was better than
anticipated due to substantial cash generation in H2.
An active pipeline of attractive international acquisition
opportunities in both Software & Platforms and Content &
Services, supports the Group's ambition to further consolidate the
high growth corporate learning and talent market.
Further details will be provided with LTG's full year results
which are expected to be announced on 24 March 2020.
Jonathan Satchell, CEO of LTG, said:
"2019 has been a year of encouraging growth across the Group
with a strong performance in Content & Services in the second
half of the year and outstanding results from our innovative
Software & Platform businesses such as BreezyHR, Rustici and
Watershed complementing our established PeopleFluent talent and
learning business. We are seeing the early successes of the Board's
decision to make focussed investments in R&D and incremental
sales initiatives to support sustainable organic growth, driving
momentum into 2020.
In 2019, the Group continued its track record of delivering
strong margins, benefiting from enhanced leadership positions in
our key markets. LTG has proven that it can successfully integrate,
improve and grow the businesses we acquire, delivering excellent
value for shareholders and comprehensive, innovative and
industry-leading capabilities and services for our clients. We have
an active pipeline of acquisition opportunities in 2020 and
continue to invest in cross-selling initiatives and explore new
routes-to-market."
* Adjusted EBIT results and comparator year data incorporate the
new accounting standard IFRS16 - Leases (adopted 1 January 2019)
and the inclusion of share-based payments as set out in the table
below. Further details of these changes were provided in the Half
Year Report dated 16 September 2019 and will be included in LTG's
full year results.
FY 2018 FY 2019
(Estimate)
GBPm GBPm
-------- ------------
Adjusted EBIT pre accounting changes 27.2 43.0
-------- ------------
Adjusted EBIT margin (%) pre accounting
changes 29.0% 33.1%
-------- ------------
Share Based Payment Charge adjustment (1.2) (3.0)
-------- ------------
IFRS16 adjustment - 1.0
-------- ------------
Revised Adjusted EBIT 26.0 41.0
-------- ------------
Revised Adjusted EBIT margin (%) 27.7% 31.5%
-------- ------------
ENDS
Enquiries:
Learning Technologies Group plc
Jonathan Satchell, Chief Executive +44 (0)20 7402
Neil Elton, Chief Financial Officer 1554
Numis Securities Limited (NOMAD and Corporate
Broker) +44 (0)20 7260
Stuart Skinner, Nick Westlake, Ben Stoop 1000
Goldman Sachs International (Joint Corporate
Broker) +44 (0)20 7774
Bertie Whitehead, Adam Laikin 1000
FTI Consulting (Public Relations Adviser) +44 (0)20 3727
Rob Mindell, Jamie Ricketts, Chris Birt 1000
About LTG
LTG is a leader in the growing workplace digital learning and
talent management market. The Group offers end-to-end learning and
talent solutions ranging from strategic consultancy, through a
range of content and platform solutions to analytical insights that
enable corporate and government clients to close the gap between
current and future workforce capability.
LTG is listed on the London Stock Exchange's Alternative
Investment Market (LTG.L) and headquartered in London. The Group
has offices in Europe, North America and Asia-Pacific.
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END
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