Learning Technologies Group PLC (AIM:LTG) said it will propose a 40% increase to its final dividend but has pushed back the date of its full-year results announcement to allow auditors to make a presentation adjustment to its prior year’s balance sheet.
Results had been expected today but in an announcement after market close yesterday the digital learning and talent management group said the adjustment to its 2020 balance sheet would have no impact on the income statement, net assets or cash.
This followed the need being identified over the week to net down trade receivables by circa £7mln and a corresponding reduction in contract liabilities in 2020, in accordance with the requirements of IFRS15, the company said, as well as a correction of the equivalent figures for 2019.
The company expects the review to be complete in time to announce its audited results on 3 May.
As work on the results was at an advanced stage, the company provided a detailed trading statement, including the board’s proposal of a final dividend of 0.7p, up from 0.5% a year ago and leading to a full year dividend of 1.0p, an increase of 33%.
Organic revenue growth for the past calendar year was up 8%, more than the 7% growth suggested in January’s trading update, with Content & Services recovering strongly and organic growth back to 2019 levels at 25%, while Software & Platforms grew 2% but at high margins.
Underlying earnings (EBIT) were up 36% to £54.8mln, with a statutory profit before tax of £9.3mln compared to £13.5mln a year earlier.
Net debt finished the year at £141.4mln thanks to “good cash generation” and putting the group on target for 1.0x leverage by the end of the current year.
Trading in the first quarter of 2022 has been “strong, in line with management expectations”, Learning Tech said, with the acquisition of GP Strategies giving opportunities for “significant margin enhancement and cross-selling, as a global business”.
On the outlook the company said: “While mindful of the current macro environment, strong business momentum continuing into the new financial year and a robust balance sheet that supports further software company acquisitions in due course, underpin the board's confidence of significant progress in FY 2022.”