Trading Update; Restoration of Dividend (2085F)

TIDMILX

RNS Number : 2085F

ILX Group PLC

20 April 2011

ILX Group PLC

("ILX" or the "Group")

TRADING UPDATE and SECTOR CHANGE

RESTORATION OF DIVIDEND PROPOSED

ILX Group plc (AiM: ILX), the AIM quoted provider of e-learning software and consulting services, is pleased to provide an update on trading for the year ended 31 March 2011. The Company expects its results to meet market expectations.

Turnover from continuing operations is expected to be GBP12.9 million (2010: GBP11.9 million) and profit before tax from continuing operations is expected to exceed GBP1.4 million (2010: GBP0.8 million), representing growth in excess of 75%.

The UK Best Practice operations have had a strong year, maintaining sales and improving margins despite the difficult economic climate. This trend has continued into the current financial year with the recently announced major contract win which is not only substantial in its own right but will give ILX the ability to work with and to influence some of the key decision makers in Government.

The International division has shown very strong growth during the year with sales up by 70% to GBP3 million and its contribution to operating profit almost doubling. The Australian office in particular has exceeded expectations, achieving sales in its first year of AUS$2.3 million, including a $180,000 contract with one of the largest state legislatures in Australia, to provide PRINCE2 and MSP Foundation e-learning and related consulting.

As a result of the capital restructuring, and based on the expected results, the Directors intend to recommend to shareholders at the AGM in September a resumption in the dividend payment, and for the year just ended to propose a payment of 1.5p per share, with the offer of a scrip alternative.

In addition, reflecting the increasing focus on a technology led learning model, ILX has sought and obtained a reclassification in sector from 2793 "Business Training and Employment Agencies" to 9537 "Software". This change will be implemented with an effective date of 20 June 2011.

Preliminary results are expected to be announced in late June.

Ken Scott, Chief Executive, ILX Group commented:

"I am pleased with the Company's performance in the year ended 31 March 2011. The decline and subsequent closure of CTG was at the time a significant disappointment. However, the continuing business has performed extremely well and we now have a vibrant and growing company with considerable potential for future growth both in the UK, where market conditions remain challenging, and Internationally.

"We have recently announced a number of major orders with international companies and with UK Government. Overall, the outlook for the current year is positive.

"The resumption of the dividend is a key part of our commitment to translate these results into shareholder value and we are hopeful that the change of sector will help investors understand more clearly the focus of the business and the scalability inherent in it."

20 April 2011

For further information, please contact:

 
 ILX Group plc                                 020 7751 7100 
 Ken Scott, Chief Executive 
 FinnCap                                       020 7600 1658 
 Marc Young, Charlotte Stranner - Corporate 
  Finance 
  Tom Jenkins, Joanna Weaving - Corporate 
  Broking 
 Lothbury Financial Services Limited           020 7868 2010 
 Michael Padley / Chris Roberts 
 

Editors' Note

ILX Group plc (www.ilxgroup.com) is a leading provider of vocational training to the private and public sectors, offering a variety of accredited courses, delivered through e-learning. It has developed its own proprietary software and is the market leader in PRINCE2. It trades through two divisions:

1. Best Practice provides e-learning, instructor-led training and implementation consultancy principally to the programme and project management, IT service management and business finance markets.

2. International was formed in late 2009 and provides e-learning and implementation consultancy in overseas markets. Offices have been established in Australia, Dubai, Denmark, The Netherlands, and USA.

ENDS

This information is provided by RNS

The company news service from the London Stock Exchange

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