Learning Technologies Group plc (LTG) is today pleased to announce a trading update for the half year ending 30 June 2014.
It is anticipated that the Group will publish interim results in September.
The period under review incorporates the successful acquisition of both LINE Communications, previously regarded as our principal UK competitor, and Preloaded, a dynamic Shoreditch business enjoying a high reputation for their creation of quality, innovative learning games. These businesses were acquired in April and May and have therefore had a limited contribution to the half year being reviewed.
LTG’s core business has traded in line with our expectations, with revenues up 8% on the corresponding period in 2013, a good performance given the hiatus seen in our Brazilian business due to the World Cup. Some of that improvement has been achieved at our rapidly growing New York office, and we are also very encouraged by the customer reaction to the release in April of gomo 2.0, our multi-device authoring tool.
As mentioned above, and in line with our stated strategy to consolidate the industry, both LINE Communications and Preloaded were acquired during the period for a mixture of cash and shares. These two strategic acquisitions extend the Group’s capabilities and further enable the Group to both win and better serve the increasingly complex requirements of our largely blue-chip international customer base.
Preloaded, managed by a young vibrant team, takes the Group into the fast expanding learning games and simulations market for the corporate sector, whilst LINE has been immediately merged with Epic and together rebranded as LEO (leolearning.com) to form what we believe is the European leader in the custom content market.
Integration of both businesses has been achieved to plan with little or no disruption and all key members of staff have been retained.
These two acquisitions confirm our view that a ‘buy and build’ strategy, alongside strong international organic growth is both attractive and achievable and that the creation of a global leader in the e-learning space, with revenues in excess of £50m remains our goal. Further interesting acquisition opportunities are being carefully considered.
Looking forward, we are delighted that the enlarged LEO sales force are involved in a significant number of negotiations with large international corporations to provide significant and strategic learning solutions, complemented where appropriate by learning ‘games with purpose’. Accordingly, we view the second half of 2014 with confidence.
Andrew Brode, Chairman said
“Great businesses, in my opinion, are created and run by outstanding people. At LTG we have an excellent group of committed professionals in three major centres, and I am particularly excited that our two acquisitions have added an even greater range of skills and experience to the Group. LTG has a unique opportunity with a head start and momentum to create a major global business in an exciting and rapidly expanding space.”