Learning Technologies Group plc

("LTG", the "Group")

(AIM: LTG)

Half Year Trading Statement and Notice of Results

LTG, the provider of services and technologies for digital learning and talent management, announces the following trading update for the six months to 30 June 2021.

LTG has delivered a robust performance in the first half of the year, in line with management expectations.  The Board expects Group revenues to increase c.29% to approximately £82.5 million (H1 2020: £64.1 million) despite challenging exchange rate headwinds compared with the same period last year.

The growth in revenue reflects the contribution from recent acquisitions and, as anticipated, strong organic growth on a constant currency basis of c.7%.  This was seen particularly in the Content & Services division where growth of c.14% has been driven by increased demand for LEO's blended learning and Affirmity's diversity & inclusion (D&I) solutions.

Our Software & Platforms division has grown c.5% on an organic basis with especially strong performances from Breezy HR and Rustici.

The businesses acquired in Q1 2021 have performed well.  Both Bridge and Reflektive, which were loss making at the time of acquisition, are now profitable and have combined well with LTG's other software offerings.  PDT continues to demonstrate strong growth and, operating alongside LTG's Affirmity D&I offering, the combined business is enjoying increased momentum with a unique data-driven solution.

Adjusted EBIT of approximately £22.0 million (c.27% margin) is c.20% ahead of prior year (H1 2021: £18.4 million; 28.7% margin) with the margin temporarily impacted as the Q1 acquisitions were integrated.  Net cash at 30 June 2021 of £24.9 million (31 December 2020: £70.2 million) is in line with expectations and reflects M&A spend in the period.

Post period-end, LTG announced the proposed acquisition of GP Strategies, a leading provider of managed learning services and workforce transformation, for $394 million. The strategically compelling combination would create a leading workforce transformation business focused on learning and talent. LTG has identified significant margin enhancement and cross-sell opportunity, with the proposed transaction expected to be significantly EPS accretive in the first year following completion. 

LTG will publish its half-year results on 21^st September 2021.

Jonathan Satchell, Chief Executive, said:

"I'm delighted to see LTG delivering in every aspect since the start of the year. Our business is growing well organically, with sustained momentum in Content & Services complementing our resilient Software & Platforms division. Most pleasingly, after a number of recent acquisitions, the portfolio is now well-integrated and combining to create new opportunities for LTG and its clients.

Following our excellent first half performance we are excited about the value that can be achieved with the proposed acquisition of GP Strategies. Looking to the second half of the year, we take great confidence from our strong growth and resilient performance."

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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.