16th Sep 2019 09:22
(Alliance News) - Learning Technologies Group PLC on Monday reported a surge in earnings in the first half of 2019, thanks to recently-acquired businesses.
The AIM-listed e-learning services provider said pretax profit jumped to GBP6.8 million in the six months to the end of June from GBP1.3 million reported for the same period a year earlier, as revenue climbed by 85% to GBP62.6 million from GBP33.8 million.
Like-for-like revenue, which excludes the post-acquisition contribution of BreezyHR Inc, the acquired PeopleFluent businesses, and the contribution from the civil service-learning contract, on a constant currency basis increased by 2%.
Learning Tech has hiked its interim payout by 67% to 0.25 pence.
Looking ahead, Chief Executive Jonathan Satchell said: "Our first-half performance increased recurring revenue and robust current trading provides great confidence for the year ahead to deliver further organic growth, strong margins and excellent cash generation. On the back of this momentum, we are investing in the second half of 2019 to drive sales further, as well as supporting organic growth initiatives into 2020."
The company noted it is seeing "excellent" trading momentum in the third quarter of 2019. Learning Tech continues to "actively" pursue acquisitions, particularly in the US, and in sectors that will extend its domain-specific expertise.
Learning Tech said it is on track to achieve its strategic goal of run-rate revenue of GBP200 million and run-rate adjusted earnings before interest and taxes of at least GBP55 million by the end of 2021.
The stock was trading 4.9% lower on Monday in London at 116.00 pence a share.
Related Shares:
Learning Technologies Group