E-learning specialist Learning Technologies is expected to report 2017 earnings 'materially ahead of expectations' thanks to strong growth in services and software licence sales as well as the successful integration of NetDimensions, acquired in March 2017.
The Board expects Group revenues to be not less than £51.8 million (2016: £28.3 million) with adjusted earnings before interest and tax of £14m (2016: £7m).
The Group's cash position is also significantly ahead of market expectations, primarily as a result of good operating cash conversion, the successful integration of NetDimensions, and the exercise of employee share options. At 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).
Andrew Brode, Chairman of LTG, said: '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.'
Results will be published in full on 19 March
At 9:24am: (LON:LTG) Learning Technologies Group share price was +4.9p at 79.7p