Learning Technologies Group PLC (LON:LTG) said its full-year revenues and earnings are expected to be ahead of consensus despite disruption in the wider market during the coronavirus (COVID-19) pandemic.
In a trading update for the year to December 31, 2020, the digital learning and talent management specialist said it expects revenues to be no less than £131mln, up from £130.1mln in the prior year, while recurring revenues increased to 80%growth from 74% driven by what the firm said was the ongoing performance of its software & platforms division and the expansion of its business in open-source learning management systems.
READ: Learning Technologies snaps up software group Reflektive
The company also said it's content & services division saw an expected revenue decline due to the impact of COVID-19, however, it added that sales momentum had increased throughout the second half of the year, giving it “confidence” that the division will recover to pre-pandemic levels.
Meanwhile, Learning Technologies said its adjusted earnings (EBIT) are expected to be ahead of forecasts at no less than £40mln compared to £41mln in 2019, which the company said demonstrated the “resilience of the company amid wider market disruption and its ability to adapt its operating model in the face of significant changes in demand across the business”.
The group said its net cash position at the end of the year was also “significantly ahead of consensus” at £70.2mln, which it said will enable it to continue its track record of acquisitions. Learning Technologies continued, saying it is “actively pursuing a near term pipeline of attractive opportunities to deliver further organic and inorganic growth across both Software & Platforms and Content & Services”, helping to achieve its strategic goal of run-rate revenues of £230mln and run-rate adjusted EBIT of £66mln by the end of 2022.
"LTG ended 2020 on a high, with strong momentum across our divisions continuing into the new year from mid-market customers and large enterprises. The group is well placed as businesses continue to look for best-of-breed technologies and services to develop their talent and enhance their workplace learning”, Learning Technologies chief executive Jonathan Satchell said in a statement.
“Amid the disruption of the past year, 2020 also saw an acceleration of structural trends towards digital learning and talent management. This underpins the board's confidence in the group's near-term and long-term prospects and, further to the growth we expect to deliver in the year ahead, we will continue our disciplined approach to acquisitions that bring additional benefits to our stakeholders", he added.