Learning Technologies Share Discussion Threads

[christh] 20/4/2020 08:10

130p today...
good stock,should take off from here.
Hopefully shorters like JohnDoe23, would drift away elsewhere

Dividend increased , new business picked up, institutions have bought in!!!

[christh] 20/4/2020 07:57

(Alliance News) - Learning Technologies Group PLC on Thursday reported a significant rise in its earnings for 2019 as it declared it will pay a higher dividend.

The stock was trading 5.3% higher at 121.30 pence each on Thursday afternoon in London.

For 2019, the e-learning services provider posted revenue of GBP130.1 million, rising 39% from GBP93.9 million reported for 2018. Pretax profit soared to GBP14.3 million from GBP3.4 million.

The rise in revenue was attributed to contributions of PeopleFluent and BreezyHR which were acquired in May 2018 and April 2019 respectively. PeopleFluent contributed USD93 million - around GBP74.4 million - to revenue ahead of expectations of around USD91.0 million.

Recurring revenue made up 74% of total revenue compared to 68% comprised in 2018. The London-based company said revenue from outside the UK accounted for 80% of revenue, up from 74% the previous year.

Learning Technologies proposed a final dividend of 0.50 pence, up from 0.35p declared the year prior but postponed payment of the dividend until market conditions normalise after the effects of the Covid-19 outbreak dissipate.

Looking ahead, the company said that while the outbreak has not materially hurt its business so far, it may result in delays to the sales pipeline, a decrease in content and services projects, and delays in customer payments. However, it assured that it has a strong balance sheet, a high proportion of recurring multi-year revenues and excellent cash generation to enable it to continue trading.

"Despite the current market uncertainty, I'm reassured by the strong and resilient position of Learning Technologies Group. We are well-positioned to further consolidate the digital learning and talent sector as opportunities emerge," said Chief Executive Jonathan Satchell.

As at the end of March, Learning Technologies had cash of and a non-committed finance facility of USD28.0 million.

By Ife Taiwo; [e-mail]

Copyright 2020 Alliance News Limited. All Rights Reserved.

[phillis] 19/4/2020 18:12

Investor
Of course

[johndoe23] 19/4/2020 16:32

I have next support at 110p then 100p. If it should fall back, who knows?!On a current PE of 25, hardly demanding for a growth company. 30 times earnings would imply a share price of 145p, my target

[investor0109] 19/4/2020 14:34

Are you referring to PeopleFluent, Phillis?

[phillis] 19/4/2020 14:15

If US companies are laying off employees in their millions how does Talent Management hold its top line

[investor0109] 19/4/2020 12:03

Toffeeman- right you are. Short positions remain and expect they will for some time. I think the next 6 months trading, if as forecast, will see some of those positions close as the share price falls back a little and finds new support.

[toffeeman] 19/4/2020 11:19

This is reasonably well-shorted - with 2.8% disclosable which probably means about 5% out on loan.

[investor0109] 19/4/2020 09:04

Investors Chronicle tip 16th April:

‘ IC View

As more companies cut their costs, it is inevitable that new business wins will stagger this year across the industry. But Learning Technologies is largely sheltered from market turmoil caused by coronavirus, given its digital nature and increasingly high proportion of recurring revenue. Buy.’

Also worth considering (same article):

‘ But LTG’s subscription-based model means that 74 per cent of revenue is recurring, up from 68 per cent in 2018, which means that a dip in new wins is unlikely to severely hurt its performance this year.’

[investor0109] 18/4/2020 17:24

Phillis- Agreed and believe unrealistic expectations are stunting share price growth to some extent. Investors have seen a recent acquisition and excellent results above forecast without a meaningful increase in the SP, which tells me that the market is struggling to value this stock, perhaps allowing sentiment to cloud judgment.

Unfortunately, LTG's share price seems to be driven almost entirely by sentiment- anybody who remembers the baseless fall from 160p down to 60p and then back up again may agree. The market reacted very badly to Goldman's downgrading to NEUTRAL in February, though that they have just this month issued a price target of 156p ought not to be overlooked. Goldman's recent price target represents and increase of more than 30% on current prices, which is terrific considering the current economic climate.

A deep and rapid sell-off immediately following share price gains indicates that whilst there is a a great deal of interest in the company, there may be a large number of short-term investors in LTG. I believe that LTG will prove most profitable as a long-term investment, so must simply weather the volatility, though frustrating at times.

In the short-term, I wouldn't be surprised to see the share price fall back some 20% from current prices, with a rapid resurgence should brokers Peel Hunt and Berenberg reiterate BUY ratings and price targets around or above 150p. After all, a stock bought at 100p with a target of 150p is a very attractive proposition!

[phillis] 18/4/2020 15:50

Well the market sears to have settled on what the ongoing valuation should be

Only more earnings or another major earnings enhancing acquisition is going to move this dramatically higher

[jeffian] 16/4/2020 23:19

Maybe I've misunderstood. I don't see what christh says so I assumed from your comment ("I wouldn’t be concerned Chris whether any member the board buys further shares") that he was complaining about directors not showing more confidence in the company by buying more shares at this level. As I say, they don't need to. If I've got it wrong, sorry, but it's not worth unfiltering to wade through more drivel just to find out.

By the way, as you don't have time, in the 10 seconds it took to turn to the RNS page for LTG covering the period from 1/6/18 to date, there are 16 announcements of the exercise of share options.

[tarrant777] 16/4/2020 18:19

I would have to go back through RNS announcements, which, even with nearly damn all else to do I have no appetite, but I think from memory that the only director to have ever been granted any share options is the FD who was recruited post the IPO, and that he has cashed in none of them.Like all successful companies, LTG appears to reward senior and middle management with options as part of their overall compensation. What on earth is wrong with that?

[jeffian] 16/4/2020 17:16

I don't see christh's posts but Tarrant777's #2051 refers to some comment about the Directors buying "more shares". As I've commented before, the one thing this company does do is dole out share options like confetti and a glimpse at the RNS shows more 'exercise of options' announcements than there are christh posts on this thread (just joking; no chance of that!). Why on earth would they want to buy in the market when they are effectively being given them?

[christh] 16/4/2020 13:35

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[tarrant777] 16/4/2020 13:13

Fine company with excellent, but already flagged results. Ex the current crisis, much of which makes short-term share price movements seem totally irrelevant, LTG would, I strongly suspect have a much higher market capitalisation reflecting the quantum of their recurring earnings from mainly blue-chip corporations and would probably have leveraged that strength to make further acquisitions. However, as the CV situation slowly resolves, if feel certain that LTG will be in a great position to cost effectively pick up further companies which have been less able to weather the storm.I wouldn't be concerned Chris whether any member the board buys further shares. If you study the report and accounts you will see that almost all of them already have very material holdings.

[christh] 16/4/2020 11:37

John,
I know, I did but useful to be mentioned here.Very good info to know.
Same applies to Investor0109


My intention is to try and encourage investors and shareholders and to counteract arguments by shorters!!!

[johndoe23] 16/4/2020 11:20

All useful info worth posting!

[johndoe23] 16/4/2020 11:20

Chris, think i posted "PEG of under 1 for fourth consecutive year" on another forum!! Kind of flattering...

[investor0109] 16/4/2020 11:18

christh- you might have misunderstood! I refer only to the last couple of lines you pasted from a post of mine on another forum- my previous regarding 'plagiarism' said tongue in cheek...I don't really mind, christh!

[investor0109] 16/4/2020 11:08

bulltradept- no apologies required here! Afterall, we're each posting our own view and that's what makes the board useful. Cheers!

[christh] 16/4/2020 10:59

Facts speak for themselves for those who can interpret them or basic arithmetic will do.

Investor0109
Am I guilty of what?
Is it considered a crime Posting known knowledge which is on the public domain and likely that invstors missed out?

If so then Guilty!
As for Phillis a dubious person , that is another story.
Different opinion, different motives, different interests.

I am a long term investor and that is where we split up with some posters in here.
As a Bull I do like to post real facts about my investment.

And by the way I have a large holding which is currently in negative territory, but long term hugely rewards await.

Think what you like!

[bulltradept] 16/4/2020 10:52

Investor, that is true once that is taken into account, should have added that. Apologies.

[investor0109] 16/4/2020 10:49

christh- consider yourself lucky that I consider plagiarism a form of flattery. You know what I mean!