Learning Technologies Group PLC (AIM:LTG, OTC:LTTHF) chief executive Jonathan Satchell takes Proactive's Stephen Gunnion through the company's trading update for the first half of the year. Despite facing revenue pressures and currency headwinds, Satchell highlighted the robust performance of the learning infrastructure business.
Satchell discussed the impact of currency fluctuations, particularly the pound-dollar exchange rate, on the company's financials. Despite these challenges, LTG achieved an increase in adjusted EBIT due to improved margins following their acquisition of GP Strategies. Satchell emphasised the ongoing, though slower, margin improvements and expressed optimism about the company's future performance.
He also provided guidance for full-year revenue and EBIT, excluding the recently completed sale of VectorVMS. Satchell stressed that the sale was a strategic move to strengthen the company's balance sheet, reducing net debt significantly.
Additionally, Satchell addressed concerns raised by US regulators, assuring investors that the company is working diligently to resolve the issues. He expressed confidence in their remediation efforts and ongoing cooperation with the regulator.
Satchell concluded by highlighting LTG's strong cash generation and a significant reduction in net debt, attributing this success to strategic disposals and consistent cash conversion from EBITDA.