Learning Technol.Grp - Half Year Trading Update
26/07/2023 07:00
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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 £283 million (H1 2022: £277.8 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 £43 million (H1 2022: £43.5 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 £550 million to £570
million and adjusted EBIT in the range of £98 million to £103 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 £108.4 million (FY 2022: £119.8 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 +44 (0)20 7832 3440
Jonathan Satchell, Chief Executive
Kath Kearney-Croft, Chief Financial Officer
Numis Securities Limited (NOMAD and Corporate Broker) +44 (0)20 7260 1000
Nick Westlake, Ben Stoop, Tejas Padalkar
Goldman Sachs International (Joint Corporate Broker) +44 (0)20 7774 1000
Bertie Whitehead, Adam Laikin
FTI Consulting (Public Relations Adviser) +44 (0)20 3727 1000
Jamie Ricketts / Emma Hall / Lucy Highland / Jemima Gurney
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 £281.8 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 £44.1 million.
3. FY 2022 revenue and adjusted EBIT from continuing operations, excluding the
discontinued UK apprenticeships business, was £588.6 million and £99.9
million respectively.
4. As at 25 July 2023, company-compiled market expectations for the year
ending 31 December 2023 are reported revenues of £609.2 million (median) and
adjusted EBIT of £109.4 million (median).
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