26
January 2024
Learning Technologies Group
plc
("LTG", the "Group" or the
"Company")
(AIM: LTG)
Full Year Trading
Update
Revenue and profit in line
with consensus expectations
Strong margin progression in
a challenging macro environment
Excellent cash performance,
significantly ahead of consensus expectations
Learning Technologies Group plc, a
global market leader in digital learning and talent management, is
pleased to announce a trading update for the year ended 31 December
2023.
The Board expects to deliver Group
revenues for continuing operations of not
less than £560 million, in line with consensus
expectations1 (2022: £588.6 million2).
As previously indicated, revenue declined c.2% on an
underlying organic basis, a resilient performance in a challenging
macroeconomic backdrop that impacted transactional and
project-based work4.
The Board expects Adjusted EBIT for
continuing operations to be not less than £98 million, in line with
consensus expectations1 (2022: £99.9
million3), with an Adjusted EBIT margin of c.17.5%
(2022: c.17%). Margins strengthened through the year, driven by a
focus on profitability and a significant improvement within GPLX
since H1 2023 following an initiative to improve the integration of
Leo. This resulted in H2 margins for GP Strategies of c.15% (H1
2023: c.12%) with an exit run-rate EBIT margin that is slightly
ahead of previous guidance of c.17%.
The Group has a substantially
reduced net debt5 position of c.£78.6 million (31
December 2022: net debt £119.8 million), significantly better than
consensus expectations1, reflecting strong cash
generation which has contributed to the continued deleveraging of
the balance sheet. On 2 January 2024, LTG completed the
disposal of non-core asset Lorien Engineering Solutions for a cash
consideration of $21.4 million on a cash and debt free
basis (subject to customary adjustments) which further supports the Group's
swift deleveraging.
Notice of Results
The Group will announce
its results for the year ended 31 December 2023 in
April 2024, at which time it will provide further guidance on the
year ahead.
Jonathan Satchell, Chief Executive of LTG,
said:
"LTG has delivered a resilient
performance in a challenging macro backdrop, underpinned by our
SaaS and long-term contracts, representing 72% of H1 2023 revenues.
Our continued focus on margin progression has supported a strong
relative profit performance. As expected, revenues on an organic
constant currency basis were marginally down as a result of lower
transactional volumes, as indicated in July.
LTG remains uniquely placed to
capture growth opportunities in a >$100 billion addressable
market as a result of our scale and breadth of offering in digital
learning and talent management. Our strong balance sheet supports
investment and accretive acquisitions that fit with our business
model, as we continue to optimise our portfolio of businesses. Our
reliable and strong cash generation creates optionality as
demonstrated by our voluntary debt repayment in September
2023.
Demand from organisations to
recruit, motivate and retain the best talent, allied with
improvements from our commercial transformation programme in GP
Strategies, support our confidence of further progress and
resilience in 2024."
Enquiries:
Learning Technologies Group plc
Jonathan Satchell, Chief
Executive
Kath Kearney-Croft, Chief Financial
Officer
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+44 (0)20
7832 3440
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Deutsche Numis (NOMAD and Corporate Broker)
Nick Westlake, Ben Stoop, Tejas
Padalkar
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+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)
Jamie Ricketts, Emma Hall, Lucy
Highland, Jemima Gurney
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+44 (0)20
3727 1000
|
About
LTG
Learning Technologies Group plc (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, South America and
Asia-Pacific.
Notes
1.
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Company-compiled, publicly available
consensus can be found at https://www.ltgplc.com/investor-information/analyst-consensus/
|
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Consensus for FY23: Revenue
of £560.2m, Adjusted EBIT of £98.0m and Net Debt
of £99.3m
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2.
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Reported revenue from continuing
operations excludes the discontinued UK apprenticeships business, further to
our announcement in December 2022 on non-core assets. Including the
discontinued UK apprenticeships
business, FY 2022 reported revenues were £596.9
million.
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3.
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Reported Adjusted EBIT from
continuing operations excludes the
discontinued UK apprenticeships business, further to our announcement
in December 2022 on non-core
assets. Including the discontinued UK apprenticeships business, FY 2022 reported Adjusted EBIT
was £100.9 million.
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4.
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Underlying organic growth is stated
on a constant currency basis, excluding the planned exit of the UK
apprenticeship businesses in March 2023.
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5.
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Net debt as defined on page 145 of
the 2022 Annual Report & Accounts.
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