Core growth and acquisition drive Learning Technologies in first half

Integrated learning and talent software and services provider Learning Technologies Group announced its half-year results for the six months ended 30 June on Tuesday, reporting a 60% improvement in revenues to £33.8m.

The AIM-traded firm said its organic revenues were ahead 10% on a constant currency basis.

It saw “strong” EBIT margin performance at 26.3%, up from 17.8% year-on-year, with adjusted diluted earnings per share rising 140% to 1.122p.

The board said its business model was continuing to support “robust” margin progression, adding that it experienced “strong” cash generation during the half-year, with “significant” funding capacity for further acquisitions.

It declared an interim dividend of 0.15p - a 67% increase on 2017.

“The first half of 2018 has been pivotal for LTG with the PeopleFluent acquisition confirming our shift towards recurring software revenues, and significantly increasing our US presence,” said chief executive officer Jonathan Satchell.

“Together with NetDimensions, PeopleFluent demonstrates our ability to successfully integrate businesses and drive growth and margin progression through operating model improvements.”

Satchell said that, alongside the company’s track record of delivering organic growth and substantial margin improvements, Learning Technologies had a “strong” balance sheet and acquisition pipeline, and was “well-placed” to continue its strategy of consolidating the high growth corporate e-learning market.

“A robust performance from our core business and the successful integration of PeopleFluent underpins our confidence that full year profit will be significantly ahead of the board's expectations.”