25th Sep 2018 10:01
LONDON (Alliance News) - Shares rose in Learning Technologies Group PLC on Tuesday as it swung to a profit for the first half of 2018, on double-digit revenue growth.
Shares in the learning software and services provider rose 11% at 140.00 pence early Tuesday in London.
For the six months to the end of June, Learning Technologies reported a pretax profit of GBP1.3 million, swinging from a loss of GBP2.3 million a year before.
Adjusted earnings before interest and taxes more than doubled to GBP8.9 million from GBP3.8 million, as margins increased to 26% in the period from 18% in the prior year following the successful restructuring of talent management software platform NetDimensions (Holdings) Ltd.
This was on revenue that rose by 60% to GBP33.8 million from GBP21.1 million the prior year, due to doubled revenue from recurring licence fees and support contracts to GBP16.5 million from GBP7.7 million.
Learning Technologies proposed an interim dividend of 0.15 pence per share, up 67% from 0.09p the year before.
The group said it expects profit for 2018 to be significantly ahead of management expectations based on the upgraded Ebit margin for recent acquisition PeopleFluent.
"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," said Chief Executive Officer Jonathan Satchell.
"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," Satchell added.
Related Shares:
Learning Technologies Group