The corporate digital learning market is worth around $90bn-$110bn (£64bn-£78bn). Learning Technologies (LTG) is leaping on this opportunity. Strong top-line momentum for 2017 was buoyed by 20 per cent organic growth, and a £12.9m nine-month contribution from NetDimensions – the learning management software platform acquired last March. Along with a focus on new products and markets, this acquisition brought greater geographical diversification of sales and raised the proportion of recurring revenue from 27 per cent to 39 per cent. Elsewhere, Gomo, a cloud-based tool allowing clients to make their own e-learning content, retained over 90 per cent of customers.
Revenue for the larger content and services segment rose 57 per cent to £30.5m, albeit helped by a civil service learning contract that will complete in June. Even so, the group’s adjusted operating margin is expected to remain in the “mid-to-high twenties in future periods” after a full-year rise from 24.6 per cent to 27 per cent. Platforms sales, including NetDimensions, climbed 143 per cent to £21.6m.
Analysts at Canaccord Genuity forecast pre-tax profit of £15.2m and adjusted EPS of 2.85p for 2018, up from £12.2m and 2.16p in 2017.
| LEARNING TECHNOLOGIES (LTG) | ||||
| ORD PRICE: | 86p | MARKET VALUE: | £494m | |
| TOUCH: | 86-87p | 12-MONTH HIGH: | 88p | LOW: 40p |
| DIVIDEND YIELD: | 0.3% | PE RATIO: | 227 | |
| NET ASSET VALUE: | 13p* | NET CASH: | £1m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013 | 7.6 | -0.9 | -0.4 | nil |
| 2014 | 14.9 | -0.1 | -0.1 | 0.10 |
| 2015 | 19.9 | 1.2 | 0.3 | 0.15 |
| 2016 | 28.3 | -1.2 | -0.3 | 0.21 |
| 2017 | 52.1 | 0.7 | 0.4 | 0.30 |
| % change | +84 | - | - | +43 |
| Ex-div: | 7 Jun | |||
| Payment: | 6 Jul | |||
| *Includes intangible assets of £83.4m, or 15p a share | ||||
