Good morning! Graham here.

Edit 1: Change of plan, as Paul is also writing a Part 2 report at this link!

Edit 2: This is the finalised list of stocks covered here in this report:



Learning Technologies (LON:LTG)

  • Share price: 48.9p (+8%)
  • No. of shares: 568.4 million
  • Market cap: £278 million

Trading Update

A detailed trading update from this e-learning business, growing via acquisition.

It's an update for the half-year ending June 2017.

The Board is pleased to report that LTG has made excellent progress over the period delivering on its strategic ambition of building an international business with annualised revenues in excess of £50 million and strong operating margins.  The Board expects the Group to achieve record revenues of not less than £20.8 million for the first half compared to £12.8 million in the first half of 2016, an increase of 62.5%.

That's interesting - the strategic plan is to shoot for a specific revenue target? I generally prefer to see objectives stated in terms of returns on capital, and I'd wonder about how the £50 million target was specifically chosen. I suppose the combo objective of revenue and strong margins is not a terrible substitute in theory (depends how strong the margins are).

The release includes a long paragraph about progress with the NetDimensions Holdings (LON:NETD) acquisition, which is going according to plan.

We also read there is strong organic growth in the group's other businesses and the period-end order book is at record levels.

Overall, it's a difficult picture to understand as there are a lot of different parts to it, as you'd expect with a company growing by acquisition.

The shares have risen so presumably the numbers are better than expected, but the update didn't actually confirm whether or not overall performance was in line with management or analyst expectations.

My opinion: I'm going to sound like a broken clock, and those of you who are long will not appreciate me…

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