Interim Report 2021

Learning Technologies Group plc (“LTG” or the “Company”), the provider of services and technologies for digital learning and talent management, announces half year results for the six months ended 30 June 2021.

Strategic highlights

  • Successful integration of Q1 acquisitions Reflektive, PDT Global and Bridge
    • Reflektive and Bridge swiftly moved to profit
    • PDT Global achieving high margins and complements LTG’s D&I solutions offering
  • Software & Platforms: functionality enhanced and go-to-market strategy embedded
  • Announcement in July 2021 of proposed acquisition of GP Strategies for $394 million; will create a global business with more than 5,000 employees and proforma revenues of c.£500m
    • The strategically compelling combination will create a leading, global workforce transformation business focused on learning and talent management
    • LTG has identified significant margin enhancement potential and cross-sell opportunities and expects the transaction to be significantly EPS accretive from 2022


Financial highlights

  • Revenue up 29% to £82.6m (H1 2020: £64.1m) including first time contributions from Reflektive, PDT Global and Bridge
  • Organic revenue growth* rate of 7% includes strong recovery in professional services
    • Software & Platforms: 5% organic growth; particularly strong growth at Rustici and Breezy
    • Content & Services: 14% organic growth; on track to return to 2019 levels as expected
  • Recurring revenues at 77% (H1 2020: 81%) as C&S revenues recover
  • Adjusted EBIT increased 20% to £22.0m (H1 2020: £18.4m)
  • EBIT margin down to 26.7% (H1 2020: 28.7%) primarily due to currency headwinds and short-term losses from Reflektive and Bridge following acquisition in Q1 2021; expect to return to guided margin levels for FY 2021
  • Operating cash conversion at 79% (H1 2020: 100%; FY 2020: 85%)
  • Net cash of £24.9 million (FY 2020 £70.2 million) after deployment of £52.1 million for the three acquisitions made during the first half



  • The Board is committed to a progressive dividend policy and is pleased to approve an interim dividend of 0.30 pence per share (H1 2020 0.25 pence per share) representing a 20% increase.
  • Interim dividend will be paid on 29th October 2021 to all shareholders on the register as at 8th October 2021.
  • Current trading and outlook
  • Good start to second half reflecting strong order book growth during the first half
  • Content & Services on track to return to 2019 revenue levels for the full year
  • Robust organic and acquired growth across Software & Platforms division; market offering positioned to leverage opportunities in the small and mid-market sectors
  • Acquisition of GP Strategies on track to complete in Q4 2021, funded by the £85m equity placing and $305m debt refinancing completed in July 2021
  • LTG remains on target to deliver on market expectations for the full year despite continuing currency headwinds

Jonathan Satchell, CEO of LTG, said:

“LTG’s swift return to organic revenue growth reflects a strong and well-integrated business with class-leading multi-product solutions for the growing global learning and talent management market. Delivering 7% organic revenue growth has been an exceptional achievement by our employees who have adapted well to an evolving and more flexible working environment.

Following this excellent first half performance, including the integration of our three most recent acquisitions, we are excited about the potential to generate further substantial shareholder value from the addition of GP Strategies, which is expected to complete in Q4 2021. The enlarged business provides a platform for further organic growth in a marketplace that is increasingly receptive to solutions that help organisations efficiently recruit, train, motivate and retain their people.”

For more information, check out the interim report or read our investor presentation.