Learning Tech director sells to fund home purchase

This follows the board’s announcement earlier in April that it intended to issue 2,408,585 new ordinary shares in order to settle a deferred consideration of BreezyHR in lieu of a cash payment. LTG bought the business in April 2019,  extending its talent acquisition products into the small, mid and enterprise market. The group also purchased Open LMS this year, a market-leading learning management system aimed at higher education institutions. The latter appears to have been well-timed, as national lockdowns have led to an increase in activity in its remote learning software. 

However, management has noted that the coronavirus has led to the delay of some of its content and services projects, and anticipates that new business wins are likely to fall. The group derives a high proportion of its sales from recurring revenue, but even here payment periods may be extended as its clients grapple with their own cash positions. 

The company has therefore identified combined cash savings of at least £20m, including deferring its final dividend, delaying directors' cash bonuses and postponing salary increases for all staff until 2021. It did, however, make its LXP ‘Instilled’ software available to corporates free-of-charge for a period of three months, enabling them to connect with their remote workforces. This could translate into extended contracts beyond the crisis – management noted that as at 16 April, 30 large corporates had picked up the software.