LTG demonstrates ‘excellent progress through 2016’ in year end results

Learning Technologies Group plc (LTG), is pleased to announce its audited results for the year ended 31 December 2016.

Financial highlights:

Revenue increased to £28.3 million (2015: £19.9 million) – up 42%
Recurring revenues increased to 27% (2015: 10%) – up 170%
Revenues generated outside of the UK increased to 36% (2015: 12%) – up 200%
Adjusted EBITDA increased to £7.7 million (2015: £4.3 million) – up 77%
Significantly improved adjusted EBITDA margin of 27% (2015: 22%) – up 29%
Statutory loss before tax of £1.2 million after accounting for acquisition related deferred consideration as deemed remuneration
Adjusted diluted earnings per share of 1.184 pence (2015: 0.756 pence per share) – up 57%
Proposed dividend for the full year of 0.21 pence per share (2015: 0.15 pence) – up 40%
Strong balance sheet with shareholders’ equity of £30.7 million (2015: £25.1 million)


Operational highlights:

Excellent progress in delivering on LTG’s strategic ambition to build an international comprehensive digital learning offering for corporate and government clients
Successful acquisition in January 2016 of Rustici Software, the acknowledged global leader in e-learning interoperability standards; results significantly ahead of expectations
27.3% stake in Watershed Systems in January 2016 developing suite of analytical tools to capture rich data on learners and measure performance
Acquisition of NetDimensions post year-end in March 2017; leading global enterprise solutions provider of talent and learning management systems
Leveraging of LTG’s blended service strategy reinforcing strong organic growth
Successful, on time and on budget implementation of landmark Civil Service contract with revenues anticipated to grow significantly in 2017
Strong start to 2017 with trading in line with management’s expectations and order book significantly ahead of the prior year on a like for like basis


Commenting, Jonathan Satchell, CEO of LTG, said:

“2016 was another fantastic year for LTG during which we delivered strong revenue and profit growth as well as completing the acquisition of Rustici Software and investment in Watershed Systems.

LTG is very well placed in its digital learning segment of the global corporate training market and it is pleasing to see that recurring revenues increased to 27% and revenues outside of the UK to 36%.”

Commenting, Andrew Brode, Chairman of LTG, said:

“The Group has enjoyed a strong start to 2017 and is trading in line with management’s expectations, and significantly ahead of last year.  We expect the current financial year to benefit from a healthy order book, increased sales resulting from our compelling blended learning capability and continuing strong margins.  LTG has substantially diversified its geographical reach in the past year and has developed a broad client base both across corporate and government sectors.  The Board is excited by the opportunities already identified that the acquisition of NetDimensions offers the Group.  The Board is therefore confident in the Group’s prospects and expects to report enhanced progress during 2017.”

Enquiries:

Learning Technologies Group plc

Jonathan Satchell, Chief Executive

Neil Elton, Group Finance Director 

+44(0)207 402 1554

Numis Securities Limited

Stuart Skinner/Michael Wharton (Nominated Adviser)

Ben Stoop (Corporate Broker) 

+44 (0)20 7260 1000

Hudson Sandler LLP

Andrew Hayes/Bertie Berger

+44 (0)20 7796 4133

View the full published report

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