Shares in Learning Technologies (LTG) climbed by more than a fifth on the news that management expects full-year adjusted operating profits to be materially ahead of current market expectations.
In a trading update, the group revealed that it expects revenues for the first six months of the year to land at around £62.5m – up by 85 per cent year on year. Organic sales for the content and services business rose “significantly” against the second half of 2018, and considerable growth is expected here in the second half of 2019.
First-half adjusted operating profits are expected to come in at no less than £20m – representing a 125 per cent increase – courtesy of an uptick in the operating margin from 26.3 per cent to approximately 32 per cent.
Meanwhile, net debt sat at £13.9m at the period-end, against £11.5m as at December – in line with expectations after acquisition and dividend payments.
