Learning Technologies Share Discussion Threads

[glennborthwick] 06/9/2016 07:25

great results. don't hold but you should do well from this one.

[multibagger] 06/9/2016 07:16

Very strong set of results with more to come in 2017 and 2018 :)

RNS Number : 0116J

Learning Technologies Group PLC

06 September 2016

6 September 2016

Learning Technologies Group plc

(AIM: LTG)

Interim Results 2016

Learning Technologies Group plc ("LTG" or the "Group"), the global integrated e-learning technology and services business, is pleased to announce interim results for the six months ended 30 June 2016, which demonstrate substantial profit and earnings growth in line with the Board's expectations.

Financial highlights:

-- Revenue increased to GBP12.8 million (H1 2015: GBP8.4 million) - up 52%

- The proportion of recurring revenues is now 25% (H1 2015: 8%)

-- Adjusted EBITDA* more than doubled at GBP3.2 million (H1 2015: GBP1.3 million) - up 145%
-- Adjusted EBITDA* margin improved by ten percentage points to 25.4% (H1 2015: 15.8%)
-- Adjusted diluted earnings per share of 0.483p (H1 2015: 0.232p per share) - up 108%

-- Operating cash flows strong, despite significant investment in CSL project and IP development

-- Interim dividend of 0.07p per share (H1 2015: 0.05p) - up 40%

Operational highlights:

-- Focus on extending and deepening best working practices across the Group has improved margins

-- Acquisition of Rustici, places LTG at the heart of global e-learning interoperability standards

- Delivers substantial recurring revenues and already performing ahead of Board's expectations

-- Strategic investment in ground-breaking Watershed business - USD3 million for 27% equity stake

- Analytic tools which show the impact and effectiveness of learning programmes

-- Good progress in LEO's landmark UK Civil Service Learning (CSL) project in partnership with KPMG LLP

- Significant upfront investment being funded from operating cash flows

- Revenues expected to accrue in Q4 2016 and accelerate substantially in 2017

-- Further acquisition opportunities being evaluated and pursued, particularly in the US and UK

Andrew Brode, Chairman of LTG, said:

"The Group continues to make strong progress in its strategic ambition to build a diversified international business with revenues of GBP50 million. The acquisition of Rustici and investment in Watershed bring exciting new capabilities to the Group, which will enable us to take learning to the heart of the business strategy at Board level. Our ability to deliver a truly blended learning experience to large organisations has been confirmed by the CSL project win with our partner KPMG. We will continue to capitalise on our existing strengths to deliver further profitable organic growth, whilst seeking new acquisition opportunities to extend the Group's reach and scale."

*Adjusted EBITDA excludes the amortisation of acquisition-related intangibles assets, the amortisation of internal capitalised development costs, depreciation, share of losses on associates, acquisition earnout charges, share based payment charges and other exceptional items.

[microscope] 05/9/2016 17:39

Generally looking forward to results in the morning, following the very bullish trading update recently.
The only thing i would caution was from the end of year results

'The CSL contract will require a significant "up-front" cash investment in 2016. The financial returns on this investment are expected to begin accruing in the second half of the current financial year with substantial returns expected in 2017 and 2018.'

So if the cash position looks less positive than people expect, it's probably explained by that, and certainly no cause for concern.

[tarrant777] 01/9/2016 23:47

Thank you ygor706, I have now found the Britishbulls.com site and read their short but encouraging BUY recommendation.Numis Securities, the house broker also today published a short upbeat note in advance of the first half results due out next week, in which they reiterated their BUY recommendation with a target price of 41p.They also state that they now believe that their EBITDA numbers for the company in '17 and '18 may be conservative and that the company will continue to pay a progressive dividend.Some people have no doubt already seen the note, which may explain the buying today and further encouraging strengthening of the stock price, which hopefully has more to come.

[ygor706] 30/8/2016 06:47

Tarrent777......Britishbulls.com is a free professional charting website that issues buy and sell signals on LSE companies, commodities etc. It also tracks its own record on signals issued for individual shares so that reliability can easily be tracked. Have a look: it can be quite useful.

[tarrant777] 29/8/2016 20:12

Let's hope so.Have never heard of Britishbulls.com, but I'm sure that management are pleased to have fans wherever they come from!Would indeed be good to see the shares recover lost ground in the next few days before the results, which hopefully will be positive (as flagged by the house broker) and then move further north afterwards.

[ygor706] 26/8/2016 12:08

Britishbulls.com issued a buy signal on the 23rd August at 28.8p and a firmer feel has developed to the share price over the past couple of days. Additionally, with a Bank Holiday on Monday we are now only 5 trading days away from the results. Unless the broader market turns sour there could be a useful run here.

[tarrant777] 26/8/2016 11:43

Doubt it Molybdenum! Following two or three big trades earlier in the week that maybe cleared out a seller (?) the stock feels now to have good momentum and I wouldn't be surprised to see it back in the mid/upper 30's again quite soon.

[molybdenum] 24/8/2016 14:35

I hope so too, as I took the opportunity of the lull to increase my stake on 15 Aug at 28.50p. Let's hope that Molybdenum's Law of Adverse Purchases does not apply.....

[ygor706] 24/8/2016 07:16

Bought a few of these yesterday as prospects look quite good with US dollar earnings increasingly coming into the mix. There has also been little share price reaction to the Broker upgrades published a month or so ago. Interims out the week after next so hopefully the news background will liven things up a little.

[tarrant777] 23/8/2016 17:04

Good to see steady buying of a stock that appears to have missed out somewhat on the recent strong market rally, despite having substantial US$ earnings alongside it's major UK business.

[multibagger] 10/8/2016 08:00

Nothing that I am aware of Molybdenum...just news vacuum I guess and it is a thinly traded share, so can drift quite easily.

[molybdenum] 10/8/2016 07:53

So - what's behind the drop in share price lately? I am pondering whether to increase my modest stake...

[microscope] 25/7/2016 08:40

It used to work! Did it via my browser successfully, cheers :)

[multibagger] 24/7/2016 16:12

Tried it Microscope.....it doesn't work ...so back to the daft link :(

Maybe you'll have better luck with it !

[microscope] 24/7/2016 11:08

In the http at the start, to make the link Live, put the two Ts in capitals, multibagger. Sounds daft i know, but it works :)

[multibagger] 24/7/2016 08:25

Interview from 15 July 2016

hxxp://www.proactiveinvestors.co.uk/companies/stocktube/5292/brexit-won-t-derail-learning-technologies-50mln-ambition-ceo-5292.html

[multibagger] 14/7/2016 22:32

Fully agree. I have built a decent stake by my standards...the track record of Brode and Satchell is stellar. They hold about 56% between them. And intend to have a progressive dividend policy (if I recall from one of the presentations). Lovely to hear that the margins are strengthening...and I think that the Rustici acquisition will bring on platform benefits from the IP. We'll be able to pay off the debt with no great bother...so dilution has been avoided.

Overall, LTG is a good one to tuck away :)

[microscope] 14/7/2016 20:04

Thanks Multibagger, agree with you entirely. Feel that the benefits will be seen in the next calendar year and 2018 should really be when the company blossoms. If i get the chance will quietly accumulate whenever I feel the price is value.

[multibagger] 14/7/2016 12:47

Welcome Microscope - I'm pretty sure we'll be well rewarded over a 3-5 year time frame :)

[microscope] 14/7/2016 09:51

Taken a small stake here finally at 31.6p. Back to the pre-acquisition price pretty much, and the company said that would be 'transformational' next year. A value entry point imho.
This is a very positive statement and with part of the business trading ahead of expectations and strong management the outlook here seems very positive.

[multibagger] 14/7/2016 07:13

Right on the money with 32% of revenues in USD/Euros :)

RNS Number : 1284E
Learning Technologies Group PLC
14 July 2016

Trading Update

Learning Technologies Group plc ("LTG" or "the Group"), the leading e-learning company, issues the following trading update for the half year ending 30 June 2016:



The Board is pleased to report significant progress during the first half of 2016. We continued to strengthen margins while making excellent progress in delivering on our strategic ambition of building an international business with revenues in excess of £50 million and delivering profits in line with expectations.



In December 2015 we announced that, alongside our strategic partner KPMG UK LLP, LTG had won a landmark contract to design and deliver blended courses that incorporate a combination of digital, informal and classroom components for the entire UK Civil Service ('CSL'). We have already created a substantial number of learning components and will have delivered the entire library by the year-end. We expect to see revenues begin to accrue in Q4 2016 with the majority of returns expected in 2017 and 2018.



In January 2016 we announced the acquisition of Rustici Software LLC ('Rustici') in the US, the acknowledged global leader in digital learning interoperability, which enables online learning content and management systems to communicate and work together. Rustici has substantial recurring revenues and has performed ahead of our expectations in the first half of 2016.



In the same month the Group also made a 27% investment in Watershed Systems Inc ('Watershed'). Watershed has developed a SaaS-based learning analytics capability, which evaluates the impact and effectiveness of learning programs. Although at an early stage of development, Watershed is making excellent progress, signing up a number of global clients and generating compelling and objective insights into the effectiveness of e-learning interventions.



LTG has maintained strong operating cash flows, whilst investing in the upfront costs of the CSL project. At 30 June 2016 gross cash was £4.3 million (31 December 2015: £7.3 million). As part of the financing of the Rustici acquisition the Group entered into a USD20 million, three year term loan. At 30 June 2016 net debt was £9.9 million (31 December 2015: net cash of £7.3 million).



While it is too early to identify any potential implications from the UK's likely exit from the European Union, we are confident that our strategic ambitions will ensure continued progress. Approximately 32% of LTG's business is undertaken for clients outside of the UK and a growing percentage of LTG's revenues are denominated in USD and Euros. Net USD cash inflows are used as an approximate internal hedge against the USD loan capital and interest repayments and, therefore, the business' overall exposure to exchange rate volatility is limited.



The Group continues to pursue acquisition opportunities particularly in the US and UK. We are also pleased that margins have strengthened further through improved working practices and increased scale, and the Board is optimistic about the prospects for LTG in H2 2016.



Andrew Brode, Chairman of LTG, said:

"LTG has made significant progress in the first half of 2016. With the acquisition of Rustici and investment in Watershed in January, LTG is delivering on its ambition to build a diversified international learning technology business of scale."



"The Group continues to invest in its industry leading portfolio of learning technologies and service offerings and the Board is optimistic about the prospects for LTG in the second half of 2016 and beyond."

[multibagger] 12/7/2016 16:16

LTG with its US acquisition and USD revenues of Rustici should benefit from the weakness of the pound.

No RNS in a long time, so hopefully a trading update or contract news is not too far away !

[microscope] 04/7/2016 17:28

Any feedback Davidosh? Effect of EU vote, integration of acquisitions etc? Iia :)

[davidosh] 21/6/2016 13:59

Learning Technologies Group LTG will be the 4th and final company to present tomorrow at the ShareSoc seminar at the FinnCap HQ. There are still a few places left … …