Learning Technologies Share Discussion Threads

[multibagger] 06/2/2017 08:22

LTG have irrevocable agreement for the sale 56%+ of the equity already (from memory)...so I am pretty relaxed about completion of the transaction. Let's hope I am right as NETD would be a cracking acquisition for us !

[janeann] 06/2/2017 08:08

well I hope you're right! time will tell.

[multibagger] 06/2/2017 07:58

Hi Janeann, Brode and Satchell are masters in the M&A game - they are unlikely to have shown their hand, unless it is already in the bag.

They have been wooing NETD since Oct 2016.

[janeann] 06/2/2017 07:51

my main worry is if there is a rival bid as that could have a big impact on LTG share price

[multibagger] 06/2/2017 07:44

Well done fbrj and welcome aboard with that massive buy !

I am sure that we'll all do well out of LTG...good luck all :)

[martinthebrave] 03/2/2017 18:38

Reading the NETD thread, 100p is at the lower end of their expectations and they are hopeful of a competing bid of 110p emerging.

[ygor706] 03/2/2017 18:14

On the face of it, paying £50m+ for the acquisition of a company with a 2016 turnover of US$26m, an EBITDA of US$2m and a history of losses looks a bit on the rich side. The dilution of a placing of c.£45m of LTG shares also doesn't help. Management comment on the prospects for the merged entry also appear thin to me. We could be in for a bumpy ride here.

[janeann] 18/1/2017 09:06

Yes - certainly well worth the wait and in fact it hasn't been that long given my first purchase less than 2 yrs ago is getting close to doubling!! Need more patience!!

[multibagger] 18/1/2017 09:00

From RNS: "Preloaded and Eukleia are engaged in large scale, global learning campaigns in 2017, for a fast food restaurant chain and a global bank respectively."

The mention of doing business with a global fast food chain and a global bank in 2017 it seemed to have been casually slipped into the RNS, but could belie its significance and potential - I see is a massive revenue generator. Could even be McDonalds.

Satchell is on record about building LTG into £50m revenues - could happen sooner than we think !
If track record is anything to go by, Jonathan Satchell will be on Proactive Investors giving an interview on the latest update, so need to look out for it.

Good luck all :)

[tarrant777] 17/1/2017 15:42

Margins up. Recurring income up. Overseas earnings (mainly in US $) up from outperforming American subsidiary acquisition. Apparently great achievement in re-writing entire CSL programs.Considerable optimism from highly respected and normally conservative Chairman.What is not to like? No wonder the shares have been marked up and well bought.

[microscope] 17/1/2017 12:00

Delighted with this trading ahead of expectations statement. The debt will worry some no doubt, but not me. It's for a reason. Without a balance of debt and investment/acquisitions most AIM companies remain locked down by remaining niche and happy with what they've got.

LTG wanted to expand from the start, and it has (imho) got things spot on, a strong balance that will lead to further 'transformational growth' as Brode has said again this morning. There's more to come if people are patient and don't sell on profit taking of others.

I see this as an investment stock, not a traders' share and 2017 just looks like growth growth and more growth. maybe i should spend more time on charting.... :)

Brilliant!

[multibagger] 17/1/2017 11:12

Clear breakout with new share price high backed by great volumes :)

[multibagger] 17/1/2017 10:11

Good resilience in an otherwise anxious market...

Only NUM left on 44p :)

Edit: Expect a tick up shortly...

[nfs] 17/1/2017 09:21

Used the word transformational again re 2017

[nfs] 17/1/2017 08:20

Whoosh! Very nice boostEBITDA margins in the mid 20s makes for a strong profit conversion from extra revenues.

[multibagger] 17/1/2017 08:17

Breakout at last :)

[multibagger] 17/1/2017 07:12

Continued strong propects...should add a couple of pennies to the share price today :)

RNS Number : 2987U

17 January 2017

Learning Technologies Group plc

("LTG" or the "Company")

(AIM: LTG)

Pre Close Update

Strong cash generation and profit ahead of expectations

Learning Technologies Group plc, the leading e-learning company, is pleased to announce a trading update for the year ended 31 December 2016.

Financials

Profit for the year was ahead of market expectations, with EBITDA margins firmly ahead of LTG's strategic ambition of 20 per cent.

The Group has increased its recurring revenues to c27% in 2016 from c10% in 2015. Over the same period, revenues generated outside of the UK have risen from c12% to c36%. These trends underpin the Group's successful development of new learning technology solutions and expansion into new geographical markets.

Cash generation remains strong with gross cash at 31 December of GBP5.3 million and net debt of GBP8.5 million (2015: net cash GBP7.3 million), after significant operational investment.

In January 2016, the Company acquired Rustici Software LLC ("Rustici"), the acknowledged global leader in digital learning interoperability which enables online content and management systems to communicate and work together. The Board is pleased to report that, since acquisition, this business has performed significantly ahead of expectations.

In December 2015, LEO, in a strategic alliance with KPMG UK LLP ("KPMG"), won a formal tender process to provide learning and development services for the entire UK Civil Service ("CSL"). In less than a year, we have redesigned and built the entire core curriculum for 400,000 civil servants, creating a more engaging and 'blended' offering for its learners. Revenues have begun to accrue in 2016 in line with our plans and will grow significantly in 2017 onwards.

Preloaded and Eukleia are engaged in large scale, global learning campaigns in 2017, for a fast food restaurant chain and a global bank respectively. gomo continues to build on its success by adding enterprise customers such as the Foreign and Commonwealth Office, Telefonica, the BBC, Fujitsu and Vodafone.

Acquisitions

LTG continues to pursue acquisition opportunities to diversify and deepen its strategic consultancy, creation, delivery, and analytics offering in the learning technologies market.

Andrew Brode, Chairman said:

'The Group has made excellent progress during 2016. In addition to the acquisition and strong subsequent performance of Rustici in the US, LEO has successfully completed the largest contract that it has ever undertaken. The revenues from this, combined with other strategic wins, will have a transformational impact on profits in 2017 and beyond."

"LTG has made great strides in delivering on its strategic objectives to create an international e-learning business of scale. EBITDA margins are now firmly in the mid twenties, underpinned by strong recurring revenues and expansion of sales outside our core UK market, and we have entered the new financial year with significant momentum. The Board is confident of delivering further strong performances given the Group's industry leading capabilities in a fast growing sector."

It is anticipated that the Group's preliminary results for the year ended 31 December 2016 will be announced at the beginning of April 2017.

[janeann] 17/1/2017 07:11

well looks pretty positive to me ..........

Learning Technologies Group plc, the leading e-learning company, is pleased to announce a trading update for the year ended 31 December 2016.

Financials

Profit for the year was ahead of market expectations, with EBITDA margins firmly ahead of LTG's strategic ambition of 20 per cent.

The Group has increased its recurring revenues to c27% in 2016 from c10% in 2015. Over the same period, revenues generated outside of the UK have risen from c12% to c36%. These trends underpin the Group's successful development of new learning technology solutions and expansion into new geographical markets.

Cash generation remains strong with gross cash at 31 December of GBP5.3 million and net debt of GBP8.5 million (2015: net cash GBP7.3 million), after significant operational investment.

In January 2016, the Company acquired Rustici Software LLC ("Rustici"), the acknowledged global leader in digital learning interoperability which enables online content and management systems to communicate and work together. The Board is pleased to report that, since acquisition, this business has performed significantly ahead of expectations.

In December 2015, LEO, in a strategic alliance with KPMG UK LLP ("KPMG"), won a formal tender process to provide learning and development services for the entire UK Civil Service ("CSL"). In less than a year, we have redesigned and built the entire core curriculum for 400,000 civil servants, creating a more engaging and 'blended' offering for its learners. Revenues have begun to accrue in 2016 in line with our plans and will grow significantly in 2017 onwards.

Preloaded and Eukleia are engaged in large scale, global learning campaigns in 2017, for a fast food restaurant chain and a global bank respectively. gomo continues to build on its success by adding enterprise customers such as the Foreign and Commonwealth Office, Telefonica, the BBC, Fujitsu and Vodafone.

Acquisitions

LTG continues to pursue acquisition opportunities to diversify and deepen its strategic consultancy, creation, delivery, and analytics offering in the learning technologies market.

Andrew Brode, Chairman said:

'The Group has made excellent progress during 2016. In addition to the acquisition and strong subsequent performance of Rustici in the US, LEO has successfully completed the largest contract that it has ever undertaken. The revenues from this, combined with other strategic wins, will have a transformational impact on profits in 2017 and beyond."

"LTG has made great strides in delivering on its strategic objectives to create an international e-learning business of scale. EBITDA margins are now firmly in the mid twenties, underpinned by strong recurring revenues and expansion of sales outside our core UK market, and we have entered the new financial year with significant momentum. The Board is confident of delivering further strong performances given the Group's industry leading capabilities in a fast growing sector."

It is anticipated that the Group's preliminary results for the year ended 31 December 2016 will be announced at the beginning of April 2017.

[molybdenum] 11/1/2017 13:01

When's the full year trading statement due? Was 25 Jan last year.... Is today's jump due to the well-informed buying in advance?....

[multibagger] 11/1/2017 11:43

About time too...as I have been patiently waiting as many others !

[janeann] 11/1/2017 11:42

well someone wants these today. Some decent sized trades too.

[microscope] 09/1/2017 14:39

Any chartists around? Well aware that Aim charts not always the most reliable, but if we get past the old double top, looks to my untrained eye we could be set for a good run