REG - Learning Tech Gp PLC - Trading Update <Origin Href="QuoteRef">LTGL.L</Origin> <Origin Href="QuoteRef">SPD.L</Origin>

FrasersAnnouncement

06/09/2014 16:46

For best results when printing this announcement, please click on the link
below:

http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20140717:nRSQ5533Ma


RNS Number : 5533M
Learning Technologies Group PLC
17 July 2014 
 
Learning Technologies Group plc 
 
("LTG" or "the Group") 
 
EXCELLENT PROGRESS WITH CONSOLIDATION AND INTERNATIONAL ORGANIC GROWTH 
 
Learning Technologies Group plc (LTG), the rapidly growing e-learning
business, is today pleased to announce a trading update for the half year
ending 30 June 2014. 
 
It is anticipated that the Group will publish interim results in September. 
 
The period under review incorporates the successful acquisition of both LINE
Communications, previously regarded as our principal UK competitor, and
Preloaded, a dynamic Shoreditch business enjoying a high reputation for their
creation of quality, innovative learning games. These businesses were acquired
in April and May and have therefore had a limited contribution to the half
year being reviewed. 
 
LTG's core business has traded in line with our expectations, with revenues up
8% on the corresponding period in 2013, a good performance given the hiatus
seen in our Brazilian business due to the World Cup. Some of that improvement
has been achieved at our rapidly growing New York office, and we are also very
encouraged by the customer reaction to the release in April of gomo 2.0, our
multi-device authoring tool. 
 
As mentioned above, and in line with our stated strategy to consolidate the
industry, both LINE Communications and Preloaded were acquired during the
period for a mixture of cash and shares. These two strategic acquisitions
extend the Group's capabilities and further enable the Group to both win and
better serve the increasingly complex requirements of our largely blue-chip
international customer base. 
 
Preloaded, managed by a young vibrant team, takes the Group into the fast
expanding learning games and simulations market for the corporate sector,
whilst LINE has been immediately merged with Epic and together rebranded as
LEO (leolearning.com) to form what we believe is the European leader in the
custom content market. 
 
Integration of both businesses has been achieved to plan with little or no
disruption and all key members of staff have been retained. 
 
These two acquisitions confirm our view that a 'buy and build' strategy,
alongside strong international organic growth is both attractive and
achievable and that the creation of a global leader in the e-learning space,
with revenues in excess of £50m remains our goal.  Further interesting
acquisition opportunities are being carefully considered. 
 
Looking forward, we are delighted that the enlarged LEO sales force are
involved in a significant number of negotiations with large international
corporations to provide significant and strategic learning solutions,
complemented where appropriate by learning 'games with purpose'. Accordingly,
we view the second half of 2014 with confidence. 
 
Andrew Brode, Chairman said 
 
"Great businesses, in my opinion, are created and run by outstanding people.
At LTG we have an excellent group of committed professionals in three major
centres, and I am particularly excited that our two acquisitions have added an
even greater range of skills and experience to the Group. LTG has a unique
opportunity with a head start and momentum to create a major global business
in an exciting and rapidly expanding space." 
 
17 July 2014 
 
Enquiries: 
 
 Learning Technologies Group plc             +44 (0)12 7346 8889  
 Jonathan Satchell, Chief Executive Officer                       
                                                                  
 Numis Securities Limited                    +44 (0)20 7260 1000  
 Stuart Skinner (Nominated Adviser)                               
 James Serjeant (Corporate Broker)                                
                                                                  
 Instinctif Partners                         +44 (0)20 7457 2020  
 Matthew Smallwood                                                
 
 
This information is provided by RNS
The company news service from the London Stock Exchange