Learning Technologies Group full-year results 2018

Learning Technologies Group plc, the leading integrated digital learning and talent management services and technologies provider, is pleased to announce audited results for the year ended 31 December 2018. For the full results, you can access the RNS here.

Strategic highlights

  • Fundamental transition towards software licence model delivering high margin, recurring revenues
  • Transformational PeopleFluent acquisition integrated ahead of schedule and expectations
  • Acquisition of Watershed brings innovative data analytics capability in-house giving clients
    compelling insights into learning programs
  • 56% of revenue derived from the US; the largest global market for learning and talent solutions
  • New strategic goal announced in November 2018, to achieve run-rate revenue of £200 million and run-rate EBIT of at least £55 million by the end of 2021

Financial highlights

  • Revenue up 83% to £93.9m, with recurring revenue up to 68% (2017: 38%) primarily driven by PeopleFluent acquisition
  • Software & Platforms organic revenue (64% of Group revenue) up 9%, on a like for like basis, reflecting growth across all software businesses
  • Content & Services organic revenue (excluding CSL) on a like for like basis, declined 8% against a particularly strong prior year which had delivered 21% organic growth
  • Profit ahead of expectations, with EBIT up 104% to £27.2m
  • Strong margin progression, with EBIT margins up 300 basis points to 29%
  • Adjusted diluted EPS up 68% to 3.232
  • Compound annual growth rate of 48% in adjusted diluted EPS in five years since listing on London Stock Exchange
  • Proposed full-year dividend up 67% to 0.50 pence per share
  • Strong balance sheet and debt facility supports pipeline of attractive international acquisition opportunities to consolidate the corporate learning and talent markets
  • Excellent cash generation, resulting in net debt of £11.5m
  • Investment for long-term, organic growth: run-rate R&D spend of c£17.5m represents c19% of Software & Platforms revenue

Current trading and outlook:

  • Good start to 2019 with trading in line with management expectations
  • Continuing excellent cash generation; net debt at end February 2019 down to c£5.0m
  • Improving content projects order book and a high proportion of recurring revenue underpins the Board’s confidence for 2019 and beyond

Commenting, Jonathan Satchell, CEO of LTG, said:
“2018 was an important year for LTG. We continued our evolution towards a predominantly software licence model delivering high-margin recurring revenue, the majority of which comes from the US. We are delighted with the progress made at PeopleFluent which has extended our offering beyond corporate digital learning, into talent management, and underlined our track record of improving the operating model of businesses we acquire.

“We have made a good start to the year, which supports our confidence in further progress during 2019, and achieving our new strategic goal of run-rate revenues of £200m and run-rate EBIT of at least £55m by the end of 2021. This is supported by robust underlying performance, a strong balance sheet, and a healthy pipeline of attractive acquisition opportunities.”

To find out more, read the results  To view the presentation, click here