26th Jul 2023 11:29
(Alliance News) - Learning Technologies Group PLC on Wednesday that its expected organic revenue growth to be flat with its half year performance impacted by a disruptive acquisition.
Shares in Learning Technologies is a London-based digital learning and talent management company, dropped by 20% to 67.75 pence in London on Wednesday morning.
Learning Technologies said it expects revenue in its first half ended June 30 to be no less than GBP283 million, up 1.9% from GBP277.8 million the previous year.
It expects organic revenue growth in its first half to be flat, citing the challenging macro environment.
The company says it expects its adjusted earnings before interest and tax of no less than GBP43 million, down 1.1% from GBP43.5 million the year before.
The company said its first half performance was impacted by the integration of LEO and GP's content business in January to form a new business called GPLX, which "caused more initial disruption than expected." Learning Technologies noted that this was a one-off factor, and that it had been resolved.
The company noted tat it had a "strong balance sheet", with net debt on June 30 reducing 9.5% to GBP108.4 million, compared to GBP119.8 million at the end of financial 2022.
Learning Technologies expects full year revenue to be between GBP550 million and GBP570 million, and adjusted earnings before interest and tax to be between EUR98 and EUR103 million.
Chief Executive Jonathan Satchell said: "While macro conditions have impacted transactional volumes, we are well placed to take advantage of greater project activity as the macro environment improves.
"Learning Technologies Group's model is highly resilient, and we expect the commercial transformation programme within GP Strategies to continue to deliver substantial margin improvements in the second half and beyond."
By Will Neill, Alliance News reporter
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