Learning Technologies Group plc reports 2017 pre-close profits significantly ahead of market expectations
Learning Technologies Group plc (LTG), is pleased to announce the following update for the year ending 31 December 2017, ahead of its full year results, expected on 19 March 2018.
The Board expects LTG revenues to be no less than £51.8 million (2016: £28.3 million).
This excellent performance has been driven by exceptional underlying organic revenue growth of more than 20%, with recurring revenues increasing to 39% (2016: 27%. It is primarily the result of strong growth in the Group’s software businesses, as well as a new contribution from NetDimensions, acquired in March 2017.
Adjusted EBIT are also ahead of market expectations at no less than £14.0 million (2016: £7.0 million). Strong growth in services and software licence sales, continued cost control and the successful integration of NetDimensions are all cited as key factors in this result.
In addition to these results, LTG’s cash position is significantly ahead of market expectations following good operating cash conversion, the successful integration of NetDimensions, and the exercise of employee share options. As of 31 December 2017 gross cash was £15.7 million (2016: £5.3 million) and net cash was £1.0 million (2016: net debt of £8.5 million).
LTG continues to enjoy an encouraging pipeline of international acquisition opportunities as it continues to diversify and deepen its strategic consultancy, creation, delivery, and analytics offering in the fast growing learning technologies market.
Andrew Brode, Chairman of LTG, said:
“2017 has been another exceptional year. LTG has experienced robust organic revenue growth during the year and, along with the successful acquisition and integration of NetDimensions, now enjoys a higher proportion of recurring revenues and an increasingly diversified client base both in terms of market sectors and geographical reach.
LTG’s scale and expertise allows it to work closely with large blue-chip corporates and national governments as their trusted strategic partner, who are increasingly embracing e-learning solutions as evidenced by the record order book we carry into 2018.
In October we announced our new strategic objective to deliver run-rate revenues of £100 million and run-rate EBIT of £25 million by the end of 2020, financed through the use of internally generated operating cash flows and prudent debt financing, minimising dilution for shareholders. These impressive results for 2017 are an encouraging indicator of the progress that is being made towards this ambitious goal.”