Financial highlights:
|
· |
Revenue increased to £21.5 million (H1 2016: £12.8 million) – up 68%
|
|
· |
Organic revenue grew to £17.6 million – up 33% |
|
· |
Recurring revenues increased to 37% (H1 2016: 24%) – up 153% |
|
· |
Revenues generated outside of the UK increased to 46% (H1 2016: 32%) – up 140% |
|
· |
Adjusted EBIT increased to £4.1 million (H1 2016: £2.9 million) – up 41% |
|
· |
Adjusted EBIT margin of 19.2% (H1 2017: 23.0%) – down 380bp due to NetDimensions |
|
· |
Adjusted diluted earnings per share of 0.523 pence (H1 2016: 0.597 pence per share) – down 7% due to NetDimensions
|
|
· |
Proposed interim dividend of 0.09 pence per share (H1 2016: 0.07 pence) – up 29% |
|
· |
Successful debt refinancing provides LTG with £20 million facility for five years |
|
· |
Strong balance sheet with adjusted net debt of £9.8 million – c1.1x Net Debt/LTM EBITDA |
Operational highlights:
|
· |
Excellent progress in delivering on LTG's strategic ambition to build an international full-service digital learning offering for corporate and government clients
|
|
· |
Successful acquisition in March 2017 of NetDimensions brings to the Group a leading proprietary Learning Management System and adds the final key technical capability to LTG's service offering
|
|
· |
Integration of NetDimensions completed on time and to plan in Q2 2017; the majority of the annualised incremental EBIT benefits of c$8 million (c£6.2 million), as stated at the time of the acquisition being announced, have been realised and the remainder will be realised in Q4 2017
|
|
· |
Civil Service Learning ('CSL') project being delivered in line with expectations |
|
· |
Strong start to H2 2017 with trading ahead of management's expectations and order book significantly ahead of the prior year on a like for like basis |
Commenting, Andrew Brode, Chairman of LTG, said:
“The Group has made excellent progress delivering on its strategic ambition of building an international business with annual revenues in excess of £50 million and strong operating margins. LTG has demonstrated strong organic revenue growth across all businesses and has continued to expand its client base and international reach whilst at the same time increasing its recurring revenue base.
The acquisition of NetDimensions completes the final key technical capability that will allow the Group to offer its corporate and government clients a truly comprehensive service. The ambitious integration of NetDimensions has been completed on time and the Board is confident that this will result in a strong margin performance in the second half of the year.
The Board continues to look at acquisition opportunities where the Group will be able to leverage its established technical capabilities and working practices in domain specific market sectors, supported by its industry leading employees.
The Board is therefore confident in the Group's prospects and expects to report enhanced progress during the remainder of 2017.”