Learning Technologies Share Discussion Threads

[longshanks] 25/9/2018 07:32

The astonishing onward progress of this remarkable company continues.

[multibagger] 25/9/2018 07:11

For the record...
Half-year Report
RNS
RNS Number : 7831B
Learning Technologies Group PLC
25 September 2018

Learning Technologies Group plc

HALF YEAR RESULTS 2018


Learning Technologies Group plc ("LTG" or the "Company"), the leading integrated learning and talent software and services provider, is pleased to announce its half year results for the six months ended 30 June 2018.

Key Financial highlights

· Revenues up 60% to £33.8m
· Organic revenues up 10% on a constant currency basis (excluding CSL)
· Strong EBIT margin performance; 26.3% (H1 2017: 17.8%)
· Adjusted diluted EPS increased by 140% to 1.122p (H1 2017: 0.468p)
· Business model continuing to support robust margin progression
· Strong cash generation with significant funding capacity for further acquisitions
· Interim dividend of 0.15p; a 67% increase on 2017

Strategic highlights

· Significant expansion in recurring software revenues via transformational PeopleFluent acquisition
· Strong recurring revenue growth, c70% on a pro forma basis; H1 2018: 51% (H1 2017: 37%)
· Integration of PeopleFluent ahead of expectations and adds talent capability and US reach
· Increased revenue diversity with majority now generated outside the UK
· Active pipeline of attractive acquisition opportunities

Outlook
· Full year profit will be significantly ahead of the Board's expectations based on the upgraded PeopleFluent EBIT margin
· High recurring revenue provides good visibility into 2019
· Healthy order book and strong margins provide further confidence

Commenting, Jonathan Satchell, CEO of LTG, said:
"The first half of 2018 has been pivotal for LTG with the PeopleFluent acquisition confirming our shift towards recurring software revenues, and significantly increasing our US presence. Together with NetDimensions, PeopleFluent demonstrates our ability to successfully integrate businesses and drive growth and margin progression through operating model improvements.

Alongside our track record of delivering organic growth and substantial margin improvements, LTG has a strong balance sheet and acquisition pipeline, and is well placed to continue its strategy of consolidating the high growth corporate e-learning market. A robust performance from our core business and the successful integration of PeopleFluent underpins our confidence that full year profit will be significantly ahead of the Board's expectations."

Financial summary


H1 2018
H1 2017
change
Revenue
£33.8m
£21.1m
+60%
Recurring Revenue %
51%
37%

Revenues Outside UK %
59%
45%

Adjusted EBIT
£8.9m
£3.8m
+137%
Adjusted EBIT margin
26.3%
17.8%

Statutory PBT
£1.3m
(£2.3m)

Adj. Diluted EPS
1.122p
0.468p
+140%
Interim Dividend per share
0.15p
0.09p
+67%
Net Debt
(£15.7m)
(£6.1m)
-159%


Operational highlights

Software & Platforms - 51% of Group revenues (H1 2017: 40%)
· NetDimensions returned to organic growth at a substantially lower cost base; renewal rate in excess of 100% in H1 2018, plus new sales wins 500% higher than H1 2017
· Integration of PeopleFluent acquisition ahead of expectations; the Board now expects the EBIT margin of PeopleFluent to be at least 25% in 2019
· Merging NetDimensions and PeopleFluent's talent software businesses - substantial benefits to be gained from leadership, operational and revenue synergies
· Rustici and gomo continue to show strong organic growth

Content & Services - 49% of Group revenues (H1 2017: 60%)
· In-line performance despite tough prior year comparators in LEO and Preloaded
· CSL project revenues completed in H1 2018 as anticipated
· Margin progression from 9% in H1 2017 to 18% in H1 2018

Analyst and investor presentation

LTG will host an analyst and investor presentation at 9 a.m. today, Tuesday 25 September 2018, at the offices of Numis.

Capital Markets Day

LTG expects to host a Capital Markets Day for analysts and investors on Thursday 15 November 2018.

[douglas fir] 25/9/2018 07:08

Key Financial highlights



· Revenues up 60% to £33.8m

· Organic revenues up 10% on a constant currency basis (excluding CSL)

· Strong EBIT margin performance; 26.3% (H1 2017: 17.8%)

· Adjusted diluted EPS increased by 140% to 1.122p (H1 2017: 0.468p)

· Business model continuing to support robust margin progression

· Strong cash generation with significant funding capacity for further acquisitions

· Interim dividend of 0.15p; a 67% increase on 2017

Commenting, Jonathan Satchell, CEO of LTG, said:

"The first half of 2018 has been pivotal for LTG with the PeopleFluent acquisition confirming our shift towards recurring software revenues, and significantly increasing our US presence. Together with NetDimensions, PeopleFluent demonstrates our ability to successfully integrate businesses and drive growth and margin progression through operating model improvements.



Alongside our track record of delivering organic growth and substantial margin improvements, LTG has a strong balance sheet and acquisition pipeline, and is well placed to continue its strategy of consolidating the high growth corporate e-learning market. A robust performance from our core business and the successful integration of PeopleFluent underpins our confidence that full year profit will be significantly ahead of the Board's expectations."

[volsung] 21/9/2018 14:58

Doubled my stake in these. Going nicely

[megasonic] 21/9/2018 14:25

Given LTG's strategy of growth through acquisition, am also wondering what other acquisitions BoD might have in the pipeline. So far they have acquired:1. LEO 2. GoMo 3. PreLoaded 4. NetDimensions 5. PeopleFluentAnd have major stakes in:1. Eukelia 2. Rustici 3. WatershedAnd this is all within the last two financial years. I would not be surprised if BoD announce another acquisition before Full Year results in March 2019.

[megasonic] 21/9/2018 14:18

After today, there's only one trading day to interim results announcement on Tuesday. Looks like share price is building up some momentum as the day approaches.I expect some PI's are interested to see the impact of PeopleFluent acquisition. BoD will probably give us an update on performance of the new unit over the last few months but given the purchase only concluded in June, I don't anticipate there being any impact on revenue until full results in March. Still, am really keen to hear about its performance in these last 3 months. Should PeopleFluent bed into the Group as effectively as past acquisitions, I expect the current 130ish share price to look cheap come Full Results in March 2019.I agree with RM, LTG have a track record of underpromising and overdelivering on results, so would not be surprised if interim results beat forecasts from the Trading Update.

[drsamwaa] 21/9/2018 12:09

sticking...

[multibagger] 21/9/2018 11:23

Results - What I will be paying particular attention to is the post period issue of the integration of PeopleFluent (as we must be close to the 100 day integration plan)and outlook.

Revenue-wise, I don't think that there will be any major surprises, but I expect that will have beaten the numbers stated in July Trading Update. PeopleFluent would have been only 1 month as part of the enlarged LTG as of 30 June 2018, so not sure that LTG will try and attach numbers to that aspect of revenue / what the accounting conventions are in such matters.

I'm a LTH...so this is just a 6 monthly milestone and no investing decision making required from my side at this point.

[chartsworth] 21/9/2018 11:08

Hmmm, hold through results or not? Leaning towards yes...

[jeffian] 20/9/2018 12:27

To be honest, I'm not that fussed as my timescales for this are years rather than days.

[rampmeister] 20/9/2018 12:17

Well they seem to be a company inclined towards under promising and over delivering and consensus revenue forecast likely to be exceeded imv. Let's hope the sell on results brigade are outnumbered by new buyers and those topping up.

RM

[jeffian] 20/9/2018 11:34

He quoted 725. You may well be right, Phillis, but we won't know til after the results will we?

[phillis] 20/9/2018 11:24

think he was referring to my 723

[jeffian] 20/9/2018 11:01

Errr...we haven't had the results yet! Come back after 25/9.

[drsamwaa] 20/9/2018 10:54

thefartingcommie....seems Phillis was right...so less of the sarcasm

[megasonic] 14/9/2018 10:20

Investopia: I've found LTG share price climbs steadily after each set of results (interim and annual) over the last couple years. This is not an overhyped stock, nor is it "ramped up" by BoD. There will ofcourse be some volatility, but I fully expect share price to follow the pattern of previous positive results - which has been an gradual increase of 20-30% over a 4/5 week period. Ofcourse different investors have different strategies and there will be sell offs along the way as some achieve targets and others like Anley top slice. Both these are perfectly sound strategies. IMO, those in LTG for the long haul will reap benefits over the next 3-5 years.

[thefartingcommie] 13/9/2018 16:30

Phillis

but will fall back at results time


ah..Phillis...how nice to see you here again after such a long time.

...here speaks the all knowing voice of all things LTG.;).

We really do value your knowledge here;0..

ps...when exactly was the last time you posted here?..

[phillis] 13/9/2018 16:12

but will fall back at results time

[investopia] 13/9/2018 16:05

Or, breaking out after a fairly solid consolidation, which looks healthy. I'd say further to go in this move...

[phillis] 13/9/2018 15:10

getting too toppy

[megasonic] 12/9/2018 21:42

Tarrant: I don't think I did a great job of clarifying my point earlier. Certainly was not meant as a criticism of BoD, quite the opposite in fact. I'm glad to see an AIM company be so focused on product development. Like yourself, I feel share price will gain over time as other investors realise the potential of what is being built here. I am more surprised that more investors have not picked up on this stock given its performance over the last couple years.So, for any who read my earlier post as a criticism of BoD (gentle or otherwise), please let me leave you in no doubt ... LTG is going places and credit for that lies squarely on the shoulders of a competent, experienced and visionary Board of Directors. And, was that a breakout today? I agree with microscope: the pattern seems familiar. Looking forward to the results: we should see significant positive impact from NetD. IMO, PeopleFluent will add something to the September report (terrific acquisition by the way), but it's full impact will not be evident until March. It's certainly going to be an interesting short (4-6 weeks) and medium term (3-12 months) with LTG. Though personally I am looking at a long term horizon. GLA all!

[tarrant777] 12/9/2018 12:21

Megasonic Some would perhaps consider that gentle criticism of a BOD that appear to be more interested in solidly growing the business than "ramping" a share price is harsh.However, as like many other contributors to this string, my LTG in-price is materially below the current price and I'm very happy to let the market, aided by occasional broker notes, recognise the value.Like others, I will be pleased to read of progress, particularly with the 2 large US acquisitions later this month.

[microscope] 12/9/2018 12:07

On the one hand this could just be a breakout, though it also reminds me a little of the trading pattern before the US acquisition.

[megasonic] 12/9/2018 10:46

The consensus amongst a few people I've spoken with is that LTG will break through (or at least hit) 140 after results day.Given how well this company has performed since reverse takeover and that MCap could soon be £1 billion+, I'm amazed how little chatter there is about it. Granted LTG is still new in the market, but it has already performed well, beat targets and is growing at speed.I get the feeling BoD is more interested in progressing the products rather than marketing the stock ... and that's fine by me because like 'fbrj', I've been in this since late 30s and I'm very satisfied with my investment, especially as I am fully de-risked!Credit to BoD. And thanks to multibagger for your accurate and informed input. Roll on the results !GLA investors

[fbrj] 11/9/2018 12:52

Heading towards interims on 25 Sept. Peel Hunt re-iterated its buy rec on 5 Sept with TP of 140p. If current share price of 120p holds it will be a closing high. It will be interesting to hear how PeopleFluent and NetDimensions are progressing.

LTG remains my largest holding. Bought initially 2 years ago and have been adding since.