Learning Technologies Group PLC expects 2022 revenues and earnings to beat City forecasts

Learning Technologies Group PLC (AIM:LTG, OTC:LTTHF) (LTG) has said both its revenues and earnings for 2022 are set to be ahead of City expectations – putting it firmly on course to hit its long-term financial targets.

In a trading update, the company said it expects to deliver revenues of not less than £595mln. This marks a significant increase from the previous year’s revenue of £258.2mln.

Additionally, LTG will deliver adjusted earnings (EBIT) for 2022 of ‘not less than £100mln’, ahead of consensus forecasts and up from £54.8mln in 2021.

The digital learning and talent management specialist said the strong performance was driven by targeted margin improvements at GP Strategies, the workforce management specialist it bought in 2021 for £284mln.

It also cited ‘encouraging’ organic growth for its progress.

According to LTG chief executive Jonathan Satchell, this puts the company on course to hit its longer-term goal of achieving annual revenues of £850mln and an EBIT run rate of £175mln by the end of 2025.

Satchell told investors: “2022 has been a transformational year for LTG, more than doubling the size of the group through the addition of GP Strategies.”

“This is a testament to the quality of our people and the momentum for our new offering,” said Satchell.

The company also reported a significantly reduced net debt position of £119.8mln thanks to strong cash generation. This has contributed to the continued deleveraging of the balance sheet, a notable achievement given the strength of the US dollar over the year, the sole denomination of the company’s existing debt facilities.

“We are making good progress with our strategy to capture the structural growth opportunities in the digital learning and talent management market and remain laser-focused on delivering profitable growth across our businesses,” noted Satchell.

The company’s full-year results are expected to be announced in April.

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