Strong organic revenue growth
Transformational GP Strategies acquisition progressing ahead of plan
Results to be announced on 3 May, to allow for a review of a presentation adjustment to the 2020 balance sheet with no impact on the income statement, net assets or cash
Learning Technologies Group plc (“LTG” or the “Company”), a market leader in digital learning and talent management, expects audited full year results to be announced on 3 May 2022, instead of 26 April. This is to allow the Company’s auditors time to review a presentation adjustment to the 2020 balance sheet which has no impact on the income statement, net assets or cash. As the audit of the full year results is at an advanced stage, the Company is today providing a detailed full-year trading update.
Over the weekend, the Company identified the need to make a presentation adjustment to the 2020 balance sheet which relates to a netting down of trade receivables by circa £7m and a corresponding reduction in contract liabilities in 2020, in accordance with the requirements of IFRS15. A correction of the equivalent figures for 2019 will also take place.
This requires additional work and reviews by the Company’s auditors. The Company expects the review to be complete in time to announce its audited results for the year ending 31 December 2021 on 3 May.
FY 2021 highlights
- Strong organic revenue growth, up 8%
- Content & Services recovered strongly, organic growth of 25%, and now back to 2019 levels, as expected
- Software & Platforms organic growth of 2%, continuing its track record of high-margin growth; PeopleFluent decline more than offset by organic growth in the remainder of the segment including strong contributions from Rustici and Breezy
- Excellent profit growth, following from strong organic revenue growth, contribution from recent acquisitions and a continued focus on EBIT margin improvement as the Group expands
- Net debt of £141.4m and good cash generation; on target for leverage c.1.0x by FY 2022
- 17% increase in adjusted diluted EPS driven by organic growth and contribution from acquisitions
- The Board will propose a final dividend of 0.7p, an increase of 40%, leading to a full year dividend of 1.0p, an increase of 33%
Strategic and operational highlights
- Sustained momentum and organic growth across the business, with high quality earnings from SaaS and long-term contracts
- Transformational GP Strategies acquisition significantly broadens scale, offering and cross-selling opportunities – delivering earlier than anticipated with EBIT margin improving in line with guidance
- New go-to-market strategy to support greater breadth and depth of offering and geographical reach and faster growing markets
- Q1 2021 acquisitions (Reflektive, PDT Global and Bridge) fully integrated and achieving substantially improved profit margins
Current trading and outlook
- Current trading in Q1 2022 is strong, in line with management expectations
- Following the transformational GP Strategies acquisition, LTG has:
- Opportunities for significant margin enhancement and cross-selling, as a global business
- Increased reach in the £100bn addressable market in digital learning and talent management
- While mindful of the current macro environment, strong business momentum continuing into the new financial year and a robust balance sheet that supports further software company acquisitions in due course, underpin the Board’s confidence of significant progress in FY 2022.
|£m unless otherwise stated||2021||2020||Change|
|Adjusted EBIT margin||21.2%||30.5%|
|Adjusted diluted EPS (pence)||5.02||4.29||+17%|
|Proposed final dividend per share (pence)||0.70||0.50||+40%|
|Net debt / (cash)||141.4||(70.2)|
|Profit before tax||9.3||13.5|
|Basic EPS (pence)||1.88||2.45|
Analyst and investor presentation dates
LTG will host an analyst and investor webcast:
- At 08.00 BST on Tuesday 26 April, in relation to today’s FY 2021 Trading Update.
- At 09.30 BST on 3 May, to present the Company’s audited FY 2021 results.
Please contact LTG@fticonsulting.com for further details.
|Learning Technologies Group plc
Jonathan Satchell, Chief Executive
Kath Kearney-Croft, Chief Financial Officer
|+44 (0)20 7402 1554|
|Numis Securities Limited (NOMAD and Corporate Broker)
Stuart Skinner, Nick Westlake, Ben Stoop
|+44 (0)20 7260 1000|
|Goldman Sachs International (Joint Corporate Broker)
Bertie Whitehead, Adam Laikin
|+44 (0)20 7774 1000|
|FTI Consulting (Public Relations Adviser)
Rob Mindell, Jamie Ricketts, Jamille Smith
|+44 (0)20 3727 1000|
LTG is a leader in the growing workplace digital learning and talent management market. The Group offers end-to-end learning and talent solutions ranging from strategic consultancy, through a range of content and platform solutions to analytical insights that enable corporate and government clients to close the gap between current and future workforce capability.
LTG is listed on the London Stock Exchange’s Alternative Investment Market (LTG.L) and headquartered in London. The Group has offices in Europe, North America, LATAM and Asia-Pacific.