GP acquisition sees revenue, earnings surge at Learning Technologies
Digital learning and talent management company Learning Technologies described a “strong performance” in a half-year update on Tuesday, saying it expected revenues to rise to at least £280m, from £82.6m a year earlier.
The AIM-traded firm said that performance in the six months ended 30 June reflected the contribution of acquisitions, organic growth of around 5% on a constant currency basis, and the benefit of foreign exchange gains.
It said the integration of GP Strategies was progressing, with margin improvements and strong organic revenue growth ahead of its expectations.
That momentum supported the board’s confidence that GP Strategies would achieve its previously-stated guidance of a 12% EBIT margin in the 2022 financial year.
Group adjusted EBIT for the first half was expected to be in excess of £43m - almost double prior year’s £22m figure.
Net debt at period end on 30 June stood at £145.3m, swinging from net cash of £24.9m on 30 June 2021 before the GP acquisition.
“Our transformational acquisition of GP Strategies is delivering strong returns and offers new opportunities for the group as an enlarged business,” said chief executive Jonathan Satchell.
“The resilient organic growth across our divisions alongside the continuing outstanding margin improvement in GP Strategies, provides the board with confidence for the full year.
“While we are mindful of the wider macro environment, LTG is better placed than ever to support an increasing number of organisations to recruit, train, motivate and retain talent.”
Learning Technologies said it would publish its results for the six months ended 30 June on 22 September.
At 1537 BST, shares in Learning Technologies Group were up 3.01% at 133.3p.
Reporting by Josh White at Sharecast.com.