Learning Technologies rises 20% on profit upgrade

The share price of Learning Technologies Group, the Aim-listed corporate education company, rose more than 20 per cent on Monday after saying it will “materially” beat full-year forecasts.

The London-based company said in a trading statement that its first-half revenues are expected to be £62.5m, up 85 per cent year-on-year, and earnings before interest and tax (Ebit) will be no less than £20m, a 125 per cent rise.

The group owns several businesses across Europe and the US which provide corporate training, such as making education videos for cabin crews, or developing platforms such as mobile apps for such content.

Its clients include British Airways, Shell and Barclays.

Jonathan Satchell, chief executive, highlighted the acquisition of PeopleFluent, a Massachusetts-based company offering corporate training software, in May last year.

LTG has been on a buying spree in recent years, acquiring companies including NetDimensions in 2017, PeopleFluent in 2018, and Breezy HR in April.

“[PeopleFluent] was our biggest acquisition to date and it required a lot of work,” he said. “It had a poorly constructed operating model, with far too much being spent on marketing, so we came in and fixed it.”

Mr Satchell said the company continues to consider “a number of very interesting acquisition opportunities” that would “meaningfully enhance the group”.

Benjamin May, associate director at Berenberg investment bank, said LTG looked “highly likely” to exceed even its revised, full-year profit forecast of £37m.

“Over the years, LTG has shown it can derive growth both organically and from acquisitions.” he said.

“If you model through the profit margin LTG is expecting, compared to what the market is expecting, then there’s plenty of room for another upgrade before the end of the year.”