Learning Technologies Group PLC Trading Statement (8097T)
23 Luglio 2020 - 8:00AM
UK Regulatory
TIDMLTG
RNS Number : 8097T
Learning Technologies Group PLC
23 July 2020
Learning Technologies Group plc
("LTG", the "Group")
(AIM: LTG)
Half year trading statement and notice of results
LTG, the provider of services and technologies for digital
learning and talent management, announces the following trading
update for the six months to 30 June 2020.
LTG has delivered a robust performance in the first half of the
year, in line with management expectations. The Board expects Group
revenues to increase c.2% to not less than GBP64.0 million (H1
2019: GBP62.6 million) reflecting a small decline in the underlying
business due to the challenging COVID-19 trading environment, which
was more than offset by the contribution from the acquired Open LMS
business in the second quarter.(1)
Adjusted EBIT of not less than GBP18.3 million (c.29% margin)
includes, as expected, an increase in amortised R&D and share
based payments of GBP1.6 million. Underlying adjusted EBIT of
c.GBP19.9 million, excluding these non-cash items, is ahead of
prior year (H1 2019: GBP19.5 million).
Approximately 75% of LTG's revenues are derived from recurring
multi-year contracts (H1 2019: 67%) and whilst, as expected, some
enterprise software procurement processes have been postponed, we
are seeing retention rates in PeopleFluent and our other software
businesses hold up well. In Rustici and our newly acquired Open LMS
business we are seeing sales and revenues increase as the adoption
of digital-learning solutions accelerates. After an initial
downturn in the market for Breezy HR's recruitment software in
mid-March we have seen a marked uptick in new sales since
mid-May.
In our Content & Services division, as expected, revenues
have been subdued in the second quarter as some client projects
were curtailed as a result of COVID-19. However, we have also won
some prestigious projects including a $1 million virtual-reality
healthcare project for PRELOADED and the conversion of a number of
classroom training programs to online and blended learning for LEO,
to be delivered in the second half of the year.
Given the current dynamic nature of the market we have
redeployed staff across the Group to match demand, particularly in
Open LMS where sales have increased substantially to meet the needs
of universities to deliver digital curricula and examinations
online, rapidly, securely and at scale.
Strong operating cash flows are ahead of management's
expectations. Net cash of GBP77.9 million (31 December 2019: GBP3.8
million) includes net Placing proceeds of GBP79.6 million received
in June. The Group has gross cash of GBP98.1 million (31 December
2019: GBP42.0 million) and undrawn debt facilities of c.GBP39.0
million.
This robust capital position will enable the Group to take
advantage of value-enhancing acquisition opportunities as they
emerge, as well as capturing the benefits of the acceleration of
structural trends towards digital learning and talent management.
The Board continues to pursue a number of acquisition opportunities
and looks forward to updating the market on developments during the
year.
With the ongoing macro-economic disruption caused by COVID-19,
the Board continues to take proactive measures to protect the
safety of colleagues, customers and partners and to prioritise the
strong liquidity and cash position of the Group. LTG has repaid all
furlough payments received from the UK government and the Company
will not make any claims under the job retention bonus scheme for
furloughed staff.
LTG will publish its half-year results on 22(nd) September
2020.
Jonathan Satchell, Chief Executive, said:
"The resilience of our people and our business has enabled the
Group to deliver strong results in the first half of the year, in
the context of unprecedented challenges as a result of the COVID-19
pandemic. During this time we continued to serve our customers in
the rapidly evolving environment for corporate learning and talent
management and prioritise the safety and wellbeing of our customers
and staff.
"With several major project wins to celebrate across our Content
& Services business and resilience in our Software &
Platforms division, LTG enters the second half of the year in a
robust position, with demand in line with management expectations
and a cash position to enable us to expand our business with
strategic value-enhancing acquisitions."
Notes
1. Based on the fair value of acquired deferred revenue under
IFRS3 representing the full value recognised under IFRS15 (subject
to audit).
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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