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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
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Software & services

Learning Technologies Group PLC on track to meet full-year expectations as key acquisitions bed in

The purchase of GP Strategies, announced in July, is on track to complete in the fourth quarter

Learning Technologies Group PLC said it had made a strong start to the second half, adding that it is on course to meet full-year expectations in spite of “continuing currency headwinds”.

Turnover for the six months ended June 30 jumped 29% to £82.6mln, thanks in part to first-time contributions from recent acquisitions Reflektive, PDT Global and Bridge.

Underlying growth was 7%, which chief executive Jonathan Satchell called “an exceptional achievement”, while the recurring revenue rate was 77%.

Earnings (adjusted EBITDA), meanwhile, grew by 20% in the six months to £22mln, while the EBIT margin was 26.7%.

The digital learning and talent management group said the content services operation was on track for a return to 2019 levels.

Digging under the hood, operating cash conversion was 79%, while net cash at the period-end was almost £25mln.

The £288mln purchase of GP Strategies in July has created a business with pro-forma revenues of £500mln, employing more than 5,000 people globally.

The acquisition is set to close in the fourth quarter funded by a share placing and a debt refinancing, investors were told.

“The enlarged business provides a platform for further organic growth in a marketplace that is increasingly receptive to solutions that help organisations efficiently recruit, train, motivate and retain their people,” said CEO Stachell.

Shareholders will be rewarded with a 0.3p a share dividend, up from 0.25p at the same point last year.

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