A trading update from Learning Technologies (LTG) revealed that its performance for the half year to June was in line with market expectations. In May, the group completed its largest ever acquisition of cloud-based talent management platform PeopleFluent for $150m (£114m) – expanding its presence in the US. Its integration has gone well so far. But, excluding PeopleFluent, bosses still expect revenues for the respective six months to reach at least £27.3m – representing growth of around 27 per cent.
Meanwhile, operating margins “remain robust”, supporting a material improvement in operating profits over the first half. Perhaps most encouragingly, the group has continued to enjoy strong operating cash flows, and a net debt position of £15.7m was better than management’s expectations. Indeed, this was also “considerably better” than broker Numis’s forecast, supported by currency movements around the PeopleFluent transaction.
