Better than expected margins will mean Learning Technologies Group PLC (LON:LTG) beating market forecasts for 2016.
The e-learning specialist said its recent acquisition Rustici has driven the improvement and was performing ‘significantly’ ahead of expectations.
Rustici is a specialist in software that enables online content and management systems to mesh and work together effectively.
Learning Tech is now also seeing first revenues from its huge Civil Service training contract, which in partnership with KPMG has established a new ‘ blended learning’ training platform for 400,000 government staff.
LTG said recurring revenues rose to around 27% of the total in 2016 with a third of income now coming from overseas.
Andrew Brode, chairman, described progress as excellent in 2016 and adeed that Rustici’s contribution combined with the Civil Service contract would mean “a transformational impact on profits in 2017 and beyond.''
“ EBITDA margins are now firmly in the mid twenties, underpinned by strong recurring revenues and expansion of sales outside our core UK market, and we have entered the new financial year with significant momentum.”