LEARNING TECHNOLOGIES GROUP PLC-FULL YEAR RESULTS 2022

LEARNING TECHNOLOGIES GROUP PLC-FULL YEAR RESULTS 2022

FULL YEAR RESULTS 2022

Strong momentum in 2022 with proforma constant currency organic growth of 5%

Revenues and profit ahead of expectations, as previously announced

Achieved margin targets for GP Strategies as part of successful integration

Learning Technologies Group plc, a global market leader in digital learning and talent management, announces results for the year ended 31 December 2022. All figures relate to that period unless otherwise stated.

Strategic highlights

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Transformational year for LTG following the successful integration of GP Strategies, which became our lead market-facing brand in Q4

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Broader offering supports cross-selling and positions LTG to capture growth opportunities in >$100bn digital learning and talent management market

·     

Resilient model with high levels of visibility due to the majority of revenues from SaaS and long-term contracts (71%) from diversified end markets

Financial highlights

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Significant addition of scale, with revenues more than doubling to £596.9 million, and adjusted EBIT of £100.9 million.  Statutory profit before tax increased 334% to £40.5 million

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Proforma constant currency organic revenue growth of 5%; organic revenue up 3%

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Achieved margin targets for GP Strategies of an average of 12% and a Q4 2022 exit rate of 14%, a significant increase compared to c.5% pre-acquisition

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Efficient cash conversion of 82% (2021: 81% on a like for like basis) resulted in swift deleveraging, in spite of US dollar strength, with net debt of £119.8m at year end (2021: £141.4m)

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Strong balance sheet supports ability to make accretive acquisitions that fit long-term strategy

Dividend

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The Board is committed to a progressive dividend policy and is pleased to propose a final dividend of 1.15p, an increase of 64%, leading to a full year dividend of 1.6p, an increase of 60%

Current trading and outlook

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Despite a more challenging macro environment, we have seen moderate revenue growth in Q1 and continue to expect to deliver high single-digit adjusted EBIT growth in 2023, supported by a strong pipeline

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Pipeline includes a number of significant long-term contracts for GP Strategies that are at an advanced stage

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Expect further margin improvements in the second half of 2023 from the next phase of GP Strategies integration

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On track to meet goal of £850m run-rate revenues and £175m run-rate adjusted EBIT by the end of 2025

Jonathan Satchell, Chief Executive of Learning Technologies Group, said:

"2022 was a transformational and successful year for LTG.  We have delivered a step-change in our scale, more than doubling revenues and almost doubling profits.  We also focused on our core priorities of organic growth, margin improvement in the businesses we acquire and excellent cash generation.

Our progress reflects the successful integration of GP Strategies, which has broadened and strengthened our offering to help us pursue the $100 billion addressable market for digital learning and talent management.  Our resilient model, with high levels of recurring revenues from diversified end markets - combined with cross-selling opportunities from this greater scale - support our confidence of further progress in 2023.  We remain confident of meeting our goal of £850m run-rate revenues and £175m run-rate EBITDA by the end of 2025."

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