REG - Learning Technol.Grp - Full Year Trading Update

Learning TechnologiesAnnouncement

26/01/2024 07:00

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RNS Number : 9853A  Learning Technologies Group PLC  26 January 2024

26 January 2024

 

Learning Technologies Group plc

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

(AIM: LTG)

 

Full Year Trading Update

 

Revenue and profit in line with consensus expectations

Strong margin progression in a challenging macro environment

Excellent cash performance, significantly ahead of consensus expectations

 

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 2023.

 

The Board expects to deliver Group revenues for continuing operations of not
less than £560 million,  in line with consensus expectations(1) (2022:
£588.6 million(2)).  As previously indicated, revenue declined c.2% on an
underlying organic basis, a resilient performance in a challenging
macroeconomic backdrop that impacted transactional and project-based work(4).

 

The Board expects Adjusted EBIT for continuing operations to be not less than
£98 million, in line with consensus expectations(1) (2022: £99.9
million(3)), with an Adjusted EBIT margin of c.17.5% (2022: c.17%). Margins
strengthened through the year, driven by a focus on profitability and a
significant improvement within GPLX since H1 2023 following an initiative to
improve the integration of Leo. This resulted in H2 margins for GP Strategies
of c.15% (H1 2023: c.12%) with an exit run-rate EBIT margin that is slightly
ahead of previous guidance of c.17%.

 

The Group has a substantially reduced net debt(5) position of c.£78.6 million
(31 December 2022: net debt £119.8 million), significantly better than
consensus expectations(1), reflecting strong cash generation which has
contributed to the continued deleveraging of the balance sheet.  On 2 January
2024, LTG completed the disposal of non-core asset Lorien Engineering
Solutions for a cash consideration of $21.4 million on a cash and debt free
basis (subject to customary adjustments) which further supports the Group's
swift deleveraging.

 

Notice of Results

 

The Group will announce its results for the year ended 31 December 2023 in
April 2024, at which time it will provide further guidance on the year
ahead.

 

Jonathan Satchell, Chief Executive of LTG, said:

 

"LTG has delivered a resilient performance in a challenging macro backdrop,
underpinned by our SaaS and long-term contracts, representing 72% of H1 2023
revenues. Our continued focus on margin progression has supported a strong
relative profit performance. As expected, revenues on an organic constant
currency basis were marginally down as a result of lower transactional
volumes, as indicated in July.

 

LTG remains uniquely placed to capture growth opportunities in a >$100
billion addressable market as a result of our scale and breadth of offering in
digital learning and talent management. Our strong balance sheet supports
investment and accretive acquisitions that fit with our business model, as we
continue to optimise our portfolio of businesses. Our reliable and strong cash
generation creates optionality as demonstrated by our voluntary debt repayment
in September 2023.

 

Demand from organisations to recruit, motivate and retain the best talent,
allied with improvements from our commercial transformation programme in GP
Strategies, support our confidence of further progress and resilience in
2024."

 

Enquiries:

 

 Learning Technologies Group plc                           +44 (0)20 7832 3440

 Jonathan Satchell, Chief Executive

 Kath Kearney-Croft, Chief Financial Officer

 Deutsche Numis (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.  Company-compiled, publicly available consensus can be found
     at https://www.ltgplc.com/investor-information/analyst-consensus/
     (https://www.ltgplc.com/investor-information/analyst-consensus/)
     Consensus for FY23: Revenue of £560.2m, Adjusted EBIT of £98.0m and Net
     Debt of £99.3m
 2.  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, FY 2022 reported revenues
     were £596.9 million.
 3.  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, FY 2022 reported Adjusted EBIT
     was £100.9 million.
 4.  Underlying organic growth is stated on a constant currency basis, excluding
     the planned exit of the UK apprenticeship businesses in March 2023.
 5.  Net debt as defined on page 145 of the 2022 Annual Report & Accounts.

 

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