Learning Technologies Share Discussion Threads

[multibagger] 21/1/2020 07:03

21 January 2020

Learning Technologies Group plc

("LTG", the "Group")

(AIM: LTG)

Full Year Trading Update and Notice of Results

Profit and cash comfortably ahead of expectations

Learning Technologies Group plc, the provider of services and technologies for digital learning and talent management, is pleased to announce a trading update for the year ending 31 December 2019.

The Board expects Group revenues to be up c.38% to c.GBP130.0 million (2018: GBP93.9 million). Recurring revenues increased to c.73% (2018: 68%), driven by strong ongoing performance in the Software & Platforms division, a full year contribution from PeopleFluent and Watershed, and the acquisition of BreezyHR in April 2019. Excluding PeopleFluent, LTG delivered organic revenue growth on a constant currency basis in both the Software & Platform and Content & Services divisions.

PeopleFluent delivered revenues of c.$93.0 million in 2019, ahead of previously announced expectations of c$91.0 million, supported by a significantly improved retention rate for its software licences and a good sales performance by Affirmity. This underscores the Board's confidence that, as guided at the time of the acquisition in 2018, PeopleFluent will return to growth in 2020.

Adjusted EBIT* is expected to be comfortably ahead of market expectations at not less than GBP41.0 million (2018: GBP26.0 million), an increase of c.58%, primarily as a result of a continued trend of improved margins across the Group and synergies being realised from the successful integration of acquisitions.

The Group's net cash position at 31 December 2019 of GBP3.8 million (2018: GBP11.5 million net debt) was better than anticipated due to substantial cash generation in H2.

An active pipeline of attractive international acquisition opportunities in both Software & Platforms and Content & Services, supports the Group's ambition to further consolidate the high growth corporate learning and talent market.

Further details will be provided with LTG's full year results which are expected to be announced on 24 March 2020.

Jonathan Satchell, CEO of LTG, said:

"2019 has been a year of encouraging growth across the Group with a strong performance in Content & Services in the second half of the year and outstanding results from our innovative Software & Platform businesses such as BreezyHR, Rustici and Watershed complementing our established PeopleFluent talent and learning business. We are seeing the early successes of the Board's decision to make focussed investments in R&D and incremental sales initiatives to support sustainable organic growth, driving momentum into 2020.

In 2019, the Group continued its track record of delivering strong margins, benefiting from enhanced leadership positions in our key markets. LTG has proven that it can successfully integrate, improve and grow the businesses we acquire, delivering excellent value for shareholders and comprehensive, innovative and industry-leading capabilities and services for our clients. We have an active pipeline of acquisition opportunities in 2020 and continue to invest in cross-selling initiatives and explore new routes-to-market."

* Adjusted EBIT results and comparator year data incorporate the new accounting standard IFRS16 - Leases (adopted 1 January 2019) and the inclusion of share-based payments as set out in the table below. Further details of these changes were provided in the Half Year Report dated 16 September 2019 and will be included in LTG's full year results.


FY 2018 FY 2019
(Estimate)
GBPm GBPm
-------- ------------

Adjusted EBIT pre accounting changes 27.2 43.0
-------- ------------
Adjusted EBIT margin (%) pre accounting
changes 29.0% 33.1%
-------- ------------

Share Based Payment Charge adjustment (1.2) (3.0)
-------- ------------
IFRS16 adjustment - 1.0
-------- ------------

Revised Adjusted EBIT 26.0 41.0
-------- ------------
Revised Adjusted EBIT margin (%) 27.7% 31.5%
-------- ------------

ENDS

[aimingupward2] 20/1/2020 10:18

Goldman Sachs raises it’s tp on LTG from 137p to 162p this morning.

[aimingupward2] 17/1/2020 13:36

A big buy of 125,000 shares has just gone through at 140p - shows a lot of confidence in there being an encouraging trading statement next week and a further rise in the share price

Edit - and 50,000 more shortly afterwards.

[christh] 14/1/2020 15:45

3rd week of January we should get a trading update.
Expect great results as already stated.
Waiting for my 165p and maybe 180p.

[jeffian] 14/1/2020 11:09

ADVFN, Support
jeffian13 Jan '20 - 22:43 - 474 of 476 Edit
0 5 0
StockSTracker

Why has this avatar been left to spam multiple threads for days? It's a pain!
dave454513 Jan '20 - 22:57 - 475 of 476
0 3 2
Advfn remove stocktracker he spams as onceatrader. Advfn remove onceatrader he spams as spurslegend11, advfn remove that he spams as fundfemale and so on so on

Advfn remove all his accounts he wakes up at 6am and sets up 20 new accounts during the day.

He's been spamming this site since 2004
bamboo214 Jan '20 - 07:53 - 476 of 476
0 3 0
Please remove StockSTracker

[microscope] 14/1/2020 11:02

Indeed toffeeman. The link turne out to be to a protected'twitter account so the '(top?)info' may not even be reliable?
From memory I seem to think Tempus was keen on LTG in the past.
650 posts since joining less than a month ago. Interests 'football'.

Why does all that seem to ring a bell? ;)

[toffeeman] 14/1/2020 10:07

May I humbly suggest that you filter StockSTracker.

This poster is peppering threads and is best ignored.

[aimingupward2] 14/1/2020 09:47

What, please, is Tempus' rationale for that, StocksTracker? It seems to be a very contrarian view.

[grahamnash] 13/1/2020 22:46

Anyone know the date of the trading statement later this month?

[aimingupward2] 09/1/2020 12:50

Thanks Toffeeman. Lot of tidying up then.

[toffeeman] 09/1/2020 11:57

Not a signal - just sorting out odd needs from larger trades - book-keeping

[aimingupward2] 09/1/2020 11:09

There have been a lot of buys this morning of less than ten shares, even a single share, which I find difficult to understand. Can there really be so many people rushing to invest £10, £2, or less in a stock? I’ve read from time to time that single share trades might be ‘a signal’, but are there really so many people wanting to communicate something? If so, then there are surely better ways of communicating than that.

So what’s going on? Does anyone have any suggestions?

[aimingupward2] 07/1/2020 17:04

Very surprising that they omitted Eco Animal Health,(EAH),for whom they are House brokers. It has been at a very low point and must surely recover. It’s certainly started the year well with an increase of about 20% today.

[epicsurf] 06/1/2020 15:27

For what its worth 1454 GMT - U.K. retailers, housebuilders, media firms and miners are among the stocks with the best growth prospects in 2020, Peel Hunt says. Peel Hunt's top 35 growth stocks of 2020 are: ASOS; boohoo; Homeserve; 4imprint; Atalya Mining; Boku; discoverIE; Future, Games Workshop, Genus, Gulf Keystone Petroleum, Harworth; JD Sports Fashion; Learning Technologies; Marshalls; Serica Energy; Sirius Real Estate; Tharisa; Avon Rubber; Abcam; Bovis Homes; Brooks Macdonald; Dunelm; GBG; IWG; Kenmare; Loungers; Manolete Partners; Next Fifteen Communications; Paragon Banking Group; Restore; Volution; Watkin Jones; WH Smith and Zotefoams. Last year's top growth selections delivered an average total return of 39% over 2019 with media company Future the star performer, up 203%, Peel Hunt analyst

[johndoe23] 03/1/2020 09:21

Hopefully if/when it hits 185p I will be happy too as would have bought back in for a nice profit by then!!

[christh] 03/1/2020 09:10

Target price is set to 185p.

Silly taking profits before the trading update due around 23 January.

The ceo already stated that is a bumper year for the company!

I am looking to see 185p and beyond.
We might see another aquisition pretty soon but also the big contract with Ministry of Defence.

Just keep watching this space.When it gets to 185p I will send you my greetings.

[johndoe23] 03/1/2020 08:59

Christh, that article was written when the share price was 125p, soaring to 145p soon after. No surprise some are taking profits now with any negative sentiment likely to hit the share price hard. The high pe leaves no room for error!I do like this company, however, prefer to wait until next update before making any move.

[christh] 03/1/2020 05:49

Sunday Times 15th December extract from 'Inside The City' by Ben Woods:

Gareth Davies, and analyst from Numis, remained bullish, writing that Learning Technologies' "active pipeline of acquisitions" could help boost its shares by another 50% to 185p.

It was also looking at some more growth in May so long as it secures a big training contract with the Ministry of Defence, as noted by Panmure Gordon analyst Paul Morland.

"With its dominant position, plenty of takeover targets to go after, and a track record of outperforming financial goals, LTG's shares should soar again," wrote Ben Woods.

"Buy," was his recommendation.

[ygor705] 02/1/2020 12:10

Took some profit on New Years Eve. At this level even the smallest negative comment could send the apples out of the cart and some of the accounting here is pretty hard to follow. This said, still a very good Brode company in my view.

[washbear] 24/12/2019 10:35

Hello John...Yes I agree.There arexstill 2.85% short positions Declared .Also the PE ratio is still toppy in this market.Keeping a very beedy eye on it.

[johndoe23] 24/12/2019 09:12

Christh, trading update in January, results in March. It will need very good news to push this to 165-180p, which it may well be. However, I'm on the fence for now. Would seem profit taking occurring now with investors looking to lock in profits...

[johndoe23] 24/12/2019 09:10

Chris, trading update in January, results in March. It will have to be very good news to push this up to 165-180p. Which it could well be, however, I'm going to wait until then...

[christh] 23/12/2019 22:37

I have set a target price of 165p and probably 180p

Do not sell them, they have much to go.
Results in January.
Record profits expected.