Since listing in November 2013, Learning Technologies (LTG) has been busy bulking up its presence in the fragmented and lucrative e-learning sector. Adjusted cash profits more than doubling to £4.3m indicates that this strategy is having the desired effect, as big-name employers ranging from the BBC to British Airways splashed out on digital solutions for adult workplace learning.
A string of acquisitions have transformed the Aim-traded company into a unique provider of bespoke solutions capable of wooing the largest clients. A big contributor in 2015 was Eukleia, which was brought in last summer to deliver learning solutions to the heavily regulated financial services sector.
Deals made post-period have added further strings to the group's bow, including the $26m (£18m) purchase of Rustici Software and acquisition of a 27.3 per cent equity stake in Watershed Systems. Mindful that acquisitions have played a key role in boosting growth, chief executive Jonathan Satchell is keen to emphasise that the group is very selective about the businesses it brings in to fill its product gaps.
He also admits Learning Technologies is not immune to the global economic slowdown, but observes that organisations often turn to e-learning in times of difficulty as face-to-face training is much more expensive. Broker Numis Securities expects pre-tax profit of £6.1m in 2016, giving EPS of 1.1p (from £3.8m and 0.76p in 2015).
| LEARNING TECHNOLOGIES (LTG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 37.3p | MARKET VALUE: | £155m | |
| TOUCH: | 37-38p | 12-MONTH HIGH: | 38p | LOW: 20p |
| DIVIDEND YIELD: | 0.4% | PE RATIO: | 98 | |
| NET ASSET VALUE: | 6p* | NET CASH: | £7.3m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 5.0 | 0.27 | 0.88 | nil |
| 2012 | 6.9 | 0.78 | 2.17 | nil |
| 2013 | 7.6 | -0.93 | -0.43 | nil |
| 2014 | 14.9 | -0.13 | -0.05 | 0.10 |
| 2015 | 19.9 | 1.55 | 0.38 | 0.15 |
| % change | +33 | - | - | +50 |
Ex-div: 9 Jun Payment: 4 Jul *Includes intangible assets of £19.8m, or 5p a share | ||||
