ILX ILX

TIDMILX

RNS Number : 5808U

ILX Group PLC

19 October 2010

ILX Group PLC

("ILX" or the "Group")

Trading Update

ILX Group plc (AiM: ILX), the AIM quoted provider of e-learning software and business training, is pleased to provide an update on trading for the year to date.

The growth seen at the end of the last financial year has continued into the current year, with H1 revenues and profits within Best Practice, particularly the international division, continuing to increase. However the Board has taken the decision to close the Finance Training business, which is entirely classroom based and which has been underperforming for some time. This will allow the Company to focus on its rapidly growing software based e-learning business, where significant increases in revenue have been seen in the last few years.

The Company has requested that the FTSE sector in which it resides be changed from Support Services to Software, given the significant and continuing change in the business. The Group's unique strength lies in its proprietary software products and in the last financial year they accounted for 44% of revenue and 62% of gross profit. This, allied to our overseas expansion will provide the principal focus for future growth.

The newly formed International Division has generated revenue growth of approximately 50% in the first half and with an increasing shift towards software sales has almost doubled its gross profit. The Australian operation has continued to perform particularly well generating nearly AU$0.9 million of sales, up from AU$0.2 million over the same period last year. A regional office in Copenhagen has been established to take advantage of growing demand in the Nordic region, and growth has also continued in the Middle East, where ILX recently won a GBP420,000 contract principally for delivery in the second half of the year. In Africa, ILX is in discussions regarding the opening of an office in South Africa, to build on the GBP150,000 per annum revenues currently coming from this region.

ILX continues to look to open sales offices abroad once the key criteria are in place; intelligence regarding PRINCE2 current and forecast usage in that market and the establishment of an existing revenue stream through export sales.

Alongside the rapid growth of the International Division the domestic Best Practice Division continues to build upon its market leading position with a high degree of repeat business and a number of new contract wins. Despite the difficult economic conditions in the UK it has seen revenues remain steady during the period.

The market for the Finance Training division has been difficult since the banking crisis and the start of the economic downturn and in particular for CTG. As a result the Board has taken the decision to cease the delivery of Financial classroom training, which has been delivered through the CTG brand, from 31 December 2010. Programmes will continue as normal until that point, ensuring that the cash close-down costs will be minimal. From January, the company has reached agreement with a business operating in the same area of activity to sell certain assets relating to the business for a small initial sum with further contingent payments based on performance. The sale of Financial e-learning products will continue through the UK Best Practice division.

Ken Scott, Chief Executive, ILX Group plc commented:

"The decision to close CTG was taken with considerable regret but given the opportunities in the e-learning area the Board has decided to focus on our software business which is growing rapidly and is easily scalable worldwide.

"The UK market remains very competitive but public sector budget cuts have not adversely affected the business to date, whilst overseas we are seeing sustained growth.

"We now have a far more sharply focussed business model, based on our proprietary software, which can be replicated in various parts of the world. I am confident that we can continue to grow in the UK whilst taking advantage of the opportunities available globally."

19 October 2010

For further information, please contact:

 
 ILX Group plc                       020 7751 7100 
 Ken Scott, Chief Executive 
 FinnCap                             020 7600 1658 
 Marc Young - Corporate Finance 
  Tom Jenkins - Corporate Broking 
 Lothbury Financial Services 
  Limited                            020 7868 2010 
 Michael Padley / Chris Roberts 
 

Editors' Note

ILX Group plc (www.ilxgroup.com) is a leading provider of vocational training to the private and public sectors, offering a variety of accredited courses, delivered through e-learning. It has developed its own proprietary software and is the market leader in PRINCE2. It trades through three divisions:

1. Best Practice provides e-learning, instructor-led training and implementation consultancy principally to the programme and project management, IT service management and business finance markets.

2. International was formed in late 2009 and provides e-learning and implementation consultancy in overseas markets. Offices have been established in Australia, Dubai, Denmark, The Netherlands, and USA.

3. Banking & Financeprovides training, workshops and related services, principally to the investment banking community.

ENDS

This information is provided by RNS

The company news service from the London Stock Exchange

END

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