viewLearning Technologies Group PLC

Learning Technologies surges on back of 'material' improvement in earnings

Revenues for the first six months of the year are expected to rise 85% and adjusted earnings by 125%

The Content & Services arm returned to growth with a significant increase compared to the second half of last year

Learning Technologies Group PLC (LON:LTG) said full-year underlying earnings are likely to be “materially ahead” of market expectations after a strong first half for sales and profits.

Revenues for the first six months of the year are expected to come out at around £62.5mln, up 85% on this time last year, with adjusted earnings before interest and tax (EBIT) up 125% to no less than £20mln.

READ: Goldman Sachs thinks Learning Technologies' shares could see around 50% upside potential over 12 months

With sales surging and EBIT margins increased to circa 32% from 26.3%, the board expressed its confidence that full-year adjusted EBIT will be materially ahead of current expectations.

The two parts of the business are both enjoying growth, with the larger Software & Platforms segment contributing “strong” organic revenue growth and boosted by the acquisition of human resources and learning specialist PeopleFluent in May last year, which also significantly boosted recurring revenues. 

A return to growth for the Content & Services with a significant increase compared to the second half of last year plus a multi-million dollar contract win for LEO in the US pointed the way to “substantial organic growth” in the second half.

“LTG's outstanding margins and cash generation provide additional capacity to invest in further sales growth in the second half of the year, and pursue a number of new initiatives to augment organic growth into 2020,” said chief executive Jonathan Satchell, adding that the board was considering “a number” of acquisition opportunities. 

Shares in LTG surged 18% higher to 111p on Monday morning, their highest level since November.

-- Adds share price --

Quick facts: Learning Technologies Group PLC


Price: 220 GBX

Market Cap: £1.73 billion

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of named herein, including the promotion by the Company of in any Content on the Site, the Company receives from said issuer annual cash...


Learning Technologies highlights return to organic revenue growth and talks...

Learning Technologies Group PLC’s Jonathan Satchell talks Proactive through its half year results for the six months ended 30 June 2021. He says the company's swift return to organic revenue growth reflects a strong and well-integrated business. Satchell says the acquisition of GP Strategies...

3 days, 4 hours ago

2 min read