Full Year Results 2019

Excellent profit and cash performance, ahead of expectations
Strong liquidity position and a robust balance sheet

View LTG’s 2019 final results

Learning Technologies Group plc (“LTG” or the “Company”), the provider of services and technologies for digital learning and talent management, is pleased to announce its full year results for the twelve months ended 31 December 2019. This is further to the publication of a summary of its unaudited results on 24 March 2020 following the Financial Conduct Authority’s request of the Group, and other listed businesses, to delay any forthcoming announcements of preliminary statements of annual results. 

FY19 strategic highlights

  • Good organic momentum from cross-selling initiatives and investment in product development
  • Content & Services returned to organic constant currency growth, as expected
  • Highly complementary acquisition of Open LMS, post period-end, has added expertise in a market-leading Learning Management System (‘LMS’) predominantly for higher education institutions and is immediately earnings enhancing

Financial summary:

£m unless otherwise stated








Recurring Revenue %



Revenue Outside UK %







Adjusted EBIT margin



Statutory PBT




Adj. Diluted EPS (pence)




Proposed final dividend per share (pence)*



Net Cash/(Debt)



 *Proposed 2019 final dividend postponed until market conditions normalise

Current trading

  • Current financial year has started well and is in line with management expectations; we have not yet seen a material impact from the ongoing COVID-19 outbreak on our performance
  • We anticipate our multi-year recurring revenues to continue largely unaffected by the current market uncertainty although new business wins may be delayed
  • A small number of content and services projects have been delayed and we anticipate that new business wins may be impacted and payment periods extended as customers manage their own cash positions
  • We have seen an increase in activity in our Instilled LXP and our newly acquired Open LMS businesses resulting in a large number of new contract wins
  • Gross cash as of 31 March 2020 was £25.0 million, following completion of the acquisition of Open LMS for cash consideration of $31.7 million (less customary price adjustments)

Actions in response to COVID-19

In light of the potential impact of COVID-19, management has taken proactive measures to prioritise the strong liquidity and net cash position of the Group and to follow WHO and government guidance to protect the safety of our workforce, customers and partners.

Prioritising our people, continuing our business and making a positive social impact

  • With all our staff working from home we initiated a number of measures to encourage continued interaction between colleagues including regular one-on-one and team calls, on-line social events and a weekly ‘all-hands’ call with the Chief Executive
  • We have made a number of resources available to staff including on-line welfare programs and support through the HR service desk
  • We have postponed Director cash bonuses until market conditions normalise; however, we have honoured our substantial bonus payments to our staff to reflect their significant and positive contribution to our performance in 2019
  • We have made available to corporates, free-of-charge, LTG’s new LXP ‘Instilled’, for a period of 3 months to enable them to connect their remote workforces. To date c.30 large corporates have initiated use of the software
  • We have worked with long-term LEO client, Resuscitation Council UK, to deliver the required healthcare e-learning courses to all the former NHS doctors and clinicians returning to the NHS in response to the COVID-19 pandemic via the ‘Your NHS Needs You’ scheme. The content was designed using Gomo and provided through a free 6-month Instilled licence for 100,000+ clinicians

Sustaining our position of financial strength

  • The Board is adopting a prudent approach to shareholder distributions, and will postpone the final dividend (proposed at 0.50 pence per share) until market conditions normalise
  • We have funded the deferred consideration of BreezyHR through the issue of shares in lieu of a cash payment of $4.0 million that was due at end of March 2020
  • We have taken a number of other measures to protect LTG’s strong financial position including a reduction in marketing, travel and capital expenditure budgets. We have also postponed salary increases for all staff until 2021, terminated the majority of contractors, implemented a 20% salary deferral scheme with effect from 1 May 2020 and ceased recruitment
  • The Chief Executive, two members of the leadership team and the Non-Executive Directors have deferred their entire salaries for the period of the staff deferral scheme. The Chairman has never taken a salary since LTG listed in 2013
  • We estimate the combined cash saving in 2020 from these measures is in excess of £20.0 million

COVID-19 creates uncertainty for the remainder of the financial year but the Board has further cash preservation measures that it is willing to implement if appropriate, recognising that maintaining our dedicated and talented workforce is a key priority in anticipation of the upturn. We have run a number of sensitised business models and the Board is confident that the Group’s strong balance sheet, large proportion of recurring revenues, and diverse blue-chip customer base – both in terms of vertical markets and geographical reach – put it in a strong position through this uncertain period and beyond.

 Jonathan Satchell, CEO of LTG, said:

“Despite the current market uncertainty I’m reassured by the strong and resilient position of LTG.  We are well positioned to further consolidate the digital learning and talent sector as opportunities emerge.”

 Analyst and investor presentation

LTG will host an analyst and investor webcast at 09:00 today, Thursday 16 April 2020.

The registration link can be found here: https://attendee.gotowebinar.com/register/84915689006595597

To join via telephone, attendees can dial: +44 330 221 9914
Webinar ID: 876-199-731
Access code: 507-982-456


Learning Technologies Group plc

Jonathan Satchell, Chief Executive

Neil Elton, Chief Financial Officer

+44 (0)20 7402 1554

Numis Securities Limited (NOMAD and Corporate Broker)

Stuart Skinner, (NOMAD), 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, Chris Birt

+44 (0)20 3727 1000

View LTG’s 2019 final results