Learning Technologies Group PLC Half Year Trading Update (1781H)
26 Juli 2023 - 8:00AM
UK Regulatory
TIDMLTG
RNS Number : 1781H
Learning Technologies Group PLC
26 July 2023
26 July 2023
Learning Technologies Group plc
("LTG", the "Group")
(AIM: LTG)
Half year trading update
LTG, the leading provider of services and technologies for
digital learning and talent management, announces a trading update
for the six months to 30 June 2023. All figures relate to this
period unless otherwise stated.
As previously guided, and as recently widely reported, the macro
environment remains challenging. Reported revenue from continuing
operations is expected to be not less than GBP283 million (H1 2022:
GBP277.8 million(1) ). Year-on-year organic revenue growth is
expected to be flat in H1 2023. Resilience in our SaaS and
long-term services contracts, which accounted for 71% of FY 2022
revenues, has been offset by a lower than expected level of
transactional and project-based work due to the lengthening of
sales cycles, particularly for our financial services and
technology clients.
Group adjusted EBIT from continuing operations for the first
half is expected to be not less than GBP43 million (H1 2022:
GBP43.5 million(2) ). GP Strategies delivered margins of c.12% in
the first half, which while in line with the average in FY 2022
were lower than the 14% margins achieved in Q4 2022.
In particular, GP Strategies' first half performance was
impacted by one-off factors from the integration of LEO with GP's
content business in January 2023 to form a new business called
GPLX, which represents 16% of GP Strategies revenues in H1 2023.
Whilst the integration of GPLX caused more initial disruption than
expected, that has been resolved and the business has been
refocused and new processes implemented during the last two months
that will enhance productivity throughout H2. We are confident we
will see significantly improved margins in the second half of the
year, reflecting the improvements in GPLX and the continued
progress with the commercial transformation programme, such that
the exit run rate EBIT margin for GP Strategies will be in line
with expectations at c.17%.
In light of the first half performance, for the full year ending
31 December 2023 we now expect Group revenues in the range of
GBP550 million to GBP570 million and adjusted EBIT in the range of
GBP98 million to GBP103 million (based on an average GBP:USD rate
of 1.28 for H2 2023).(3,4)
LTG has a strong balance sheet and continues to deleverage, with
net debt at 30 June 2023 of GBP108.4 million (FY 2022: GBP119.8
million).
The Group will publish its half year results in September
2023.
Jonathan Satchell, Chief Executive of Learning Technologies
Group, said:
"LTG has high levels of recurring revenues, underpinned by
long-term services and SaaS contracts. While macro conditions have
impacted transactional volumes, we are well placed to take
advantage of greater project activity as the macro environment
improves. LTG's model is highly resilient, and we expect the
commercial transformation programme within GP Strategies to
continue to deliver substantial margin improvements in H2 and
beyond.
Our strong balance sheet allows for select accretive
acquisitions, which supports our confidence of further progress in
the second half of the year."
Enquiries:
Learning Technologies Group plc
Jonathan Satchell, Chief Executive
Kath Kearney-Croft, Chief Financial Officer +44 (0)20 7832 3440
Numis Securities Limited (NOMAD and Corporate Broker)
Nick Westlake, Ben Stoop, Tejas Padalkar +44 (0)20 7260 1000
Goldman Sachs International (Joint Corporate Broker)
Bertie Whitehead, Adam Laikin +44 (0)20 7774 1000
FTI Consulting (Public Relations Adviser)
Jamie Ricketts / Emma Hall / Lucy Highland / Jemima Gurney +44 (0)20 3727 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. Reported revenue from continuing operations excludes the
discontinued UK apprenticeships business, further to our
announcement in December 2022 on non-core assets. Including the
discontinued UK apprenticeships business, H1 2022 reported revenues
were GBP281.8 million.
2. Reported adjusted EBIT from continuing operations excludes
the discontinued UK apprenticeships business, further to our
announcement in December 2022 on non-core assets. Including the
discontinued UK apprenticeships business, H1 2022 reported adjusted
EBIT was GBP44.1 million.
3. FY 2022 revenue and adjusted EBIT from continuing operations,
excluding the discontinued UK apprenticeships business, was
GBP588.6 million and GBP99.9 million respectively.
4. As at 25 July 2023, company-compiled market expectations for
the year ending 31 December 2023 are reported revenues of GBP609.2
million (median) and adjusted EBIT of GBP109.4 million
(median).
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END
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