Learning Technologies Group PLC (AIM:LTG, OTC:LTTHF) is on track to meet its full-year expectations, bolstered by what it described as a resilient first-half performance achieved against a tough macroeconomic backdrop.
The digital learning and talent management company said revenues for the six months ended 30 June 2023 grew by 2% to £284.6 million.
Within that figure, the Content & Services operation experienced a 2% increase, while the Software & Platforms sector saw a 5% decline.
Adjusted earnings before interest and taxes (EBIT) were down by 1% to £43.1 million. Cash conversion was 65%, up from 60% a year ago. The interim dividend was maintained at 0.45p a share.
Learning Technologies said its diversified business model was evident in its long-term contract wins for Software & Platforms and major customer acquisitions in Content & Services.
Software as a service (SaaS) and long-term contracts made up 72% of the revenue for the first half of 2023, a slight increase from 71% in the same period last year.
The company plans a voluntary debt repayment of £20.5 million (US$25 million) on 29 September, which is expected to result in an interest benefit of £328,000 (US$0.4 million) in the fourth quarter of 2023.
The firm's net debt stood at £108.4 million as of 30 June, down from £119.8 million at the end of 2022.
Despite a challenging macroeconomic environment impacting transactional and project-based work, the company remains optimistic.
Chief executive Jonathan Satchell said: "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 balance sheet supports investment and accretive acquisitions that fit with our business model, whilst also allowing us to make a voluntary debt repayment.
"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 meeting analyst estimates for FY23."