Learning Technologies Group plc, the global integrated e-learning technology and services business, is pleased to announce interim results for the six months ended 30 June 2016, which demonstrate substantial profit and earnings growth in line with the Board’s expectations.
- Revenue increased to £12.8 million (H1 2015: £8.4 million) – up 52%
- The proportion of recurring revenues is now 25% (H1 2015: 8%)
- Adjusted EBITDA* more than doubled at £3.2 million (H1 2015: £1.3 million) – up 145%
- Adjusted EBITDA* margin improved by ten percentage points to 25.4% (H1 2015: 15.8%)
- Adjusted diluted earnings per share of 0.483p (H1 2015: 0.232p per share) – up 108%
- Operating cash flows strong, despite significant investment in CSL project and IP development
- Interim dividend of 0.07p per share (H1 2015: 0.05p) – up 40%
- Focus on extending and deepening best working practices across the Group has improved margins
- Acquisition of Rustici, places LTG at the heart of global e-learning interoperability standards
- Delivers substantial recurring revenues and already performing ahead of Board’s expectations
- Strategic investment in ground-breaking Watershed business – USD3 million for 27% equity stake
- Analytic tools which show the impact and effectiveness of learning programmes
- Good progress in LEO’s landmark UK Civil Service Learning (CSL) project in partnership with KPMG LLP
- Significant upfront investment being funded from operating cash flows
- Revenues expected to accrue in Q4 2016 and accelerate substantially in 2017
- Further acquisition opportunities being evaluated and pursued, particularly in the US and UK
Andrew Brode, Chairman of LTG, said:
“The Group continues to make strong progress in its strategic ambition to build a diversified international business with revenues of £50 million. The acquisition of Rustici and investment in Watershed bring exciting new capabilities to the Group, which will enable us to take learning to the heart of the business strategy at Board level. Our ability to deliver a truly blended learning experience to large organisations has been confirmed by the CSL project win with our partner KPMG. We will continue to capitalise on our existing strengths to deliver further profitable organic growth, whilst seeking new acquisition opportunities to extend the Group’s reach and scale.”
*Adjusted EBITDA excludes the amortisation of acquisition-related intangibles assets, the amortisation of internal capitalised development costs, depreciation, share of losses on associates, acquisition earnout charges, share based payment charges and other exceptional items.
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