LTG Half-Year Results 2018

Learning Technologies Group plc (“LTG” or the “Company”), the leading integrated learning and talent software and services provider, is pleased to announce its half year results for the six months ended 30 June 2018.

Key Financial highlights

· Revenues up 60% to £33.8m
· Organic revenues up 10% on a constant currency basis (excluding CSL)
· Strong EBIT margin performance; 26.3% (H1 2017: 17.8%)
· Adjusted diluted EPS increased by 140% to 1.122p (H1 2017: 0.468p)
· Business model continuing to support robust margin progression
· Strong cash generation with significant funding capacity for further acquisitions
· Interim dividend of 0.15p; a 67% increase on 2017

Strategic highlights

· Significant expansion in recurring software revenues via transformational PeopleFluent acquisition
· Strong recurring revenue growth, c70% on a pro forma basis; H1 2018: 51% (H1 2017: 37%)
· Integration of PeopleFluent ahead of expectations and adds talent capability and US reach
· Increased revenue diversity with majority now generated outside the UK
· Active pipeline of attractive acquisition opportunities


· Full year profit will be significantly ahead of the Board’s expectations based on the upgraded PeopleFluent EBIT margin
· High recurring revenue provides good visibility into 2019
· Healthy order book and strong margins provide further confidence

Commenting, Jonathan Satchell, CEO of LTG, said:
“The first half of 2018 has been pivotal for LTG with the PeopleFluent acquisition confirming our shift towards recurring software revenues, and significantly increasing our US presence. Together with NetDimensions, PeopleFluent demonstrates our ability to successfully integrate businesses and drive growth and margin progression through operating model improvements.

Alongside our track record of delivering organic growth and substantial margin improvements, LTG has a strong balance sheet and acquisition pipeline, and is well placed to continue its strategy of consolidating the high growth corporate e-learning market. A robust performance from our core business and the successful integration of PeopleFluent underpins our confidence that full year profit will be significantly ahead of the Board’s expectations.”

Financial summary

H1 2018 H1 2017 change
Revenue £33.8m £21.1m +60%
Recurring Revenue % 51% 37%
Revenues Outside UK % 59% 45%
Adjusted EBIT £8.9m £3.8m +137%
Adjusted EBIT margin 26.3% 17.8%
Statutory PBT £1.3m (£2.3m)
Adj. Diluted EPS 1.122p 0.468p +140%
Interim Dividend per share 0.15p 0.09p +67%
Net Debt (£15.7m) (£6.1m) -159%

Operational highlights

Software & Platforms – 51% of Group revenues (H1 2017: 40%)

· NetDimensions returned to organic growth at a substantially lower cost base; renewal rate in excess of 100% in H1 2018, plus new sales wins 500% higher than H1 2017
· Integration of PeopleFluent acquisition ahead of expectations; the Board now expects the EBIT margin of PeopleFluent to be at least 25% in 2019
· Merging NetDimensions and PeopleFluent’s talent software businesses – substantial benefits to be gained from leadership, operational and revenue synergies
· Rustici Software and gomo continue to show strong organic growth

Content & Services – 49% of Group revenues (H1 2017: 60%)

· In-line performance despite tough prior year comparators in LEO Learning and PRELOADED
· CSL project revenues completed in H1 2018 as anticipated
· Margin progression from 9% in H1 2017 to 18% in H1 2018

Analyst and investor presentation

LTG will host an analyst and investor presentation at 9 a.m. today, Tuesday 25 September 2018, at the offices of Numis.

Capital Markets Day

LTG expects to host a Capital Markets Day for analysts and investors on Thursday 15 November 2018.


Learning Technologies Group plc

Jonathan Satchell, Chief Executive

Neil Elton, Chief Financial Officer

+44 (0)20 7402 1554
Numis Securities Limited

Stuart Skinner / Michael Wharton (Nominated Adviser)

Ben Stoop (Corporate Broker)

+44 (0)20 7260 1000
Goldman Sachs International (Joint Corporate Broker)

James A Kelly

Adam Laikin

+44 (0)20 7774 1000
FTI Consulting (Public Relations Adviser)

Rob Mindell / Jamie Ricketts

+44 (0)20 3727 1000

About LTG

LTG is a leader in the high growth workplace learning industry. 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 meet their performance objectives.

LTG is listed on the London Stock Exchange Alternative Investment Market (LTG.L) and headquartered in London. The Group has offices in Europe, the United States, Asia-Pacific and South America.

Further information on the Group is available at

To find out more, read LTG’s Interim Report 2018