Learning Technologies Boosts Dividend By 50% Amid "Very Strong" 2017

19th Mar 2018 11:31

LONDON (Alliance News) - Learning Technologies Group PLC hiked its full year dividend by 50% on Monday after reporting a swing to profit in 2017 amid massive revenue growth in "very strong" year as profit continues to be held back by acquisition-related costs.

In 2017, the education software firm swung to a pretax profit of GBP692,000 from a loss of GBP1.2 million the year prior. This was after revenue rose 84% to GBP52.1 million from GBP28.3 million the year before.

Profit performance was held back primarily by costs associated with acquisition activity. Although acquisition related deferred consideration and earn-outs fell to GBP1.9 million from GBP3.2 million the year before other costs rose.

Integration costs rose to GBP1.2 million from GBP73,000, amortisation of acquired intangibles rose to GBP7.8 million from GBP3.2 million and costs of acquisition rose to GBP920,000 from GBP99,000 the year before.

In March 2017, Learning Technologies acquired NetDimensions Holdings Ltd for GBP54.0 million. This followed its buying US-based Rustici Software in January 2016 for USD26.0 million, as well as a 27.3% stake in Watershed Systems for USD3.0 million.

Learning Technologies proposed a 0.21 pence per share final dividend, up 50% from 0.14p the year prior. For the full year, the dividend rose 43% to 0.30p from 0.21p.

"Learning Technologies Group enjoyed a very strong year in 2017, as we create a market leader in the fast-growing digital learning industry," Chief Executive Jonathan Satchell said. "We continue to diversify our revenue streams across a range of technical and service capabilities, geographies, and market sectors. The growth in recurring revenue provides us with greater visibility and supports our investment for long-term shareholder value as we scale the Group globally, broaden our capabilities and deepen our client relationships."

Chairman Andrew Brode added: "The group has enjoyed a strong start to 2018 and is trading ahead of management's expectations. We expect the current financial year to benefit from our record order book, increased sales resulting from our compelling blended learning capability and continuing strong margins. LTG has substantially diversified its geographical reach and recurring revenue base in the past year and has developed a broad client portfolio both across corporate and government sectors. Management is also actively pursuing acquisition opportunities in line with its strategic objectives."

Shares in Learning Technologies were 3.6% higher at 86.00 pence on Monday.

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