Full year trading update for the year ended 31 December 2023

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.”