Profit for the year is in-line with expectations with the Group having generated excellent EBITDA margins in the second half of the year. Cash generation remains strong with net cash at 31 December 2015 of £7.0 million (2014: £4.4 million). The Group has no debt.
2015 saw the Company continue to build on the foundations that were laid in 2014. This included the acquisition of Eukleia Training Limited in July which added specialist Governance, Risk and Compliance (GRC) expertise to the Group, particularly in the financial services sector. The integration of Eukleia is complete and the business is trading in line with expectations.
In December 2015, LEO, in a strategic alliance with KPMG UK, won a formal tender process to provide learning and development services for the entire UK Civil Service (CSL). This is a landmark deal which endorses the Group’s strategy to build a multi-discipline e-learning business of scale. The contract is for a period of 3 years, with CSL having the option to extend the agreement by a further year. Delivery of the initial learning components will commence in March 2016 and be complete by September 2016. The financial implications for the Group are expected to be significantly beneficial in 2016 and transformational in 2017 onwards.
In addition to CSL, recent contract wins provide LTG with a strong platform as it enters 2016. The Group continues to pursue exciting new strategic contract opportunities and is actively seeking to acquire suitable businesses as part of its commitment to
The Group continues to pursue exciting new strategic contract opportunities and is actively seeking to acquire suitable businesses as part of its commitment to build an international e-learning business with revenues of at least £50 million and EBITDA margins in excess of 20 per cent.
LTG expects to update the market on progress during Q1 2016. It is anticipated that the preliminary results for the year ended 31 December 2015 will be announced towards the end of March 2016.
Andrew Brode, Chairman said: “LTG has made good progress in 2015 delivering on its strategy of consolidating the fragmented e-learning industry and is optimistic about acquisition opportunities on both sides of the Atlantic. As demonstrated by recent contract wins, customers value the comprehensive blended learning services; strategic insight and solutions; and international reach, scale and responsiveness that the Group is able to offer.”