LTG.GB Learning Technologies Group Plc

TIDMLTG

RNS Number : 8922N

Learning Technologies Group PLC

26 January 2023

26 January 2023

Learning Technologies Group plc

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

(AIM: LTG)

Full Year Trading Update

- Strong performance ahead of expectations

- Delivered margin improvements in line with previous guidance

- Excellent cash performance resulting in continued swift deleveraging

Learning Technologies Group plc, a global market leader in digital learning and talent management, is pleased to announce a trading update for the year ended 31 December 2022.

The Board expects to deliver Group revenues ahead of consensus expectations(1) of not less than GBP595 million (2021: GBP258.2 million). Revenue growth is expected to be c.5% on a pro forma basis and c.3% on an underlying organic basis(2) .

The Board expects Adjusted EBIT for 2022 to be not less than GBP100 million, ahead of consensus expectations(1) (2021: GBP54.8 million). This strong performance was delivered as a result of achieving targeted margin improvements at GP Strategies driven by our commercial transformation programme, in addition to encouraging organic growth. The Board is confident of delivering the next phase of the integration programme at GP Strategies in 2023.

The Group has a significantly reduced net debt position of GBP119.8 million (31 December 2021: net debt GBP141.4 million), in line with consensus expectations(1) , thanks to strong cash generation. This robust cash performance has contributed to the continued deleveraging of the balance sheet. This is a notable achievement given the strength of the US dollar over the year, the sole denomination of our existing debt facilities.

Further details will be provided with LTG's full year results which are expected to be announced in April 2023.

Jonathan Satchell, Chief Executive of LTG, said:

"2022 has been a transformational year for LTG, more than doubling the size of the Group through the addition of GP Strategies. This is a testament to the quality of our people and the momentum for our new offering. We delivered strong revenue growth and significant margin improvements in GP Strategies, as guided to earlier in the year, and look forward to further margin improvements and cross-selling opportunities in 2023. I was delighted with our continued strong cash generation and swift deleveraging which provides opportunities to use our balance sheet strength in 2023.

We are making good progress with our strategy to capture the structural growth opportunities in the digital learning and talent management market and remain laser-focused on delivering profitable growth across our businesses. This momentum, supported by the majority of our revenues being long-term and contracted, supports our confidence of achieving our goal of delivering run-rate revenues of GBP850 million and run-rate adjusted EBIT of GBP175 million by the end of 2025. We look forward to helping organisations meet their need to develop, motivate and retain talent in the year ahead."

Enquiries:

 
 Learning Technologies Group plc 
  Jonathan Satchell, Chief Executive              +44 (0)20 7832 
  Kath Kearney-Croft, Chief Financial Officer               3440 
 Numis Securities Limited (NOMAD and Corporate 
  Broker)                                         +44 (0)20 7260 
  Nick Westlake, Ben Stoop, Tejas Padalkar                  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, Jamille Smith                1000 
 

About LTG

Learning Technologies Group plc (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, South America and Asia-Pacific.

Notes

1. Company-compiled, publicly available consensus can be found at https://www.ltgplc.com/investor-information/analyst-consensus/

Consensus for FY22: Revenue of GBP588.8m, Adjusted EBIT of GBP97.5m and Net Debt of GBP120.0m

2. Underlying organic growth is stated on a constant currency basis and excludes the inorganic element of 2021 acquisitions Reflective, PDT Global, Bridge and GP Strategies. Pro forma growth is stated on a constant currency basis, assumes the Company had owned these businesses for the full 2021 and the Board believes is a more accurate reflection of the underlying growth of the business given the aggregate revenue of these businesses relative to the rest of the Group

   3.    Net debt as defined on page 142 of the 2020 Annual Report & Accounts 

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