Learning Technologies Group plc
Half Year Results 2022
Stronger than expected revenue and EBIT growth including GP Strategies
Learning Technologies Group plc, a global market leader in digital learning and talent management, announces half year results for the six months ended 30 June 2022.
Strategic highlights
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Resilient growth across LTG, with stronger than expected organic growth in GP Strategies |
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The Group is benefitting from its well embedded commercial discipline in the current economic environment |
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GP Strategies delivering margin improvements in line with expectations |
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New compelling market position from which to deliver our powerful integrated product offering is already driving new growth opportunities |
Financial highlights
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Strong revenue growth of 241% to £281.8 million (H1 2021: £82.6 million), supported by GP Strategies which contributed £184.9 million and the FX tailwinds of a stronger US dollar |
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Group organic revenue growth (on a constant currency basis) of 5.2%: |
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Software & Platforms: 6.5% organic growth driven by strong performance in Breezy, Rustici and Watershed |
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Content & Services: 1.6% organic growth supported by good performance in PRELOADED and Affirmity |
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SaaS & long-term contract revenues at 71% of Group (H1 2021: 77%), reflects the change in the portfolio mix since the acquisition of GP Strategies, partially offset by higher organic growth. Adjusted EBIT growth doubled over the prior year to £44.1 million (H1 2021: £22.0 million) |
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Cash generated from operations £26.8 million (H1 2021: £19.9 million). Cash conversion[1] of 60% included a normal H1 cyclical working capital investment in GP Strategies masking a 98% cash conversion in the rest of the Group |
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Gross cash of £71.9 million and net debt of £145.3 million at 30 June (compared to £24.9 million net cash at 30 June 2021 prior to the GP acquisition) includes the impact of a stronger US dollar on the dollar denominated debt. Gross cash as at 16 September was £83.3 million |
Dividend
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The Board is committed to a progressive dividend policy and is pleased to declare an interim dividend of 0.45 pence per share (H1 2021: 0.30 pence per share) representing a 50% increase on 2021 interim dividend |
Current trading and outlook
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LTG's robust performance has continued into the second half, further enhanced by FX tailwinds |
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GP Strategies' transformation is progressing strongly, with EBIT margin on track to achieve an average of 12% for FY22 and an exit rate of c.15%, in line with plan |
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LTG expects to deliver ahead of company compiled analysts' consensus[2] for FY22 with the strength of the US dollar substantially contributing to the increasing Group EBIT |
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Net debt: adjusted EBITDA of 1.5x at the end of June 2022 (FY21: 1.8x), expected to fall to c.1.0x by FY22, excluding the impact of any potential acquisitions or further strengthening of the US dollar |
Capital Markets Day
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On 13th October 2022, LTG will host a Capital Markets Day in London for analysts and investors. During this time, we will expand upon our new go-to-market strategy, introduce our comprehensive approach to talent transformation, and share how our cohesive offering helps large global clients unleash the potential of their talent and drive their businesses forward. To register to attend, please contact LTG@fticonsulting.com . |
Jonathan Satchell, Chief Executive Officer of Learning Technologies Group, said:
“The strong performance is a reflection of LTG's strategy in action. I am excited to see the positive impact that GP Strategies is already having, and I am delighted with the improving EBIT margin and sustained organic revenue growth in the business.
We remain confident in LTG's resilience as we continue to deliver growth despite the wider macro environment. LTG is in a strong position as more organisations focus on recruiting, training, motivating, and retaining the best talent. I look forward to conveying more detail about the enhanced capabilities of LTG at our Capital Markets Day on 13th October.”