Shares inare up over 18% following a trading update that reported £62.5 million in H1 2019 revenue for the company-- an 85% increase compared to 2018.
The company shared that approximately 67% of these revenues were derived from recurring contracts, especially the “transformational” acquisition of PeopleFluent back in May 2018.
At the time, Learning Technologies Group’s board pushed for the purchase by arguing it would make LTG a £135 million revenue business-- a target that H1’s reports show they could very well hit.
Today’s announcement also featured an adjusted EBIT that is “materially ahead of expectations” at over £20 million, a whopping 120% increase from last year; the board also stressed they believe that full-year adjusted EBIT will also be ahead of current market expectations.
Chief Executive Jonathan Satchell commented, “I am particularly delighted by the sales momentum in our Content & Services division that has built over the last nine months. Our Software & Platforms division continues to go from strength-to-strength.
LTG's outstanding margins and cash generation provide additional capacity to invest in further sales growth in the second half of the year, and pursue a number of new initiatives to augment organic growth into 2020. We continue to consider a number of very interesting acquisition opportunities that would meaningfully enhance the Group.
This strong H1 performance underpins the Board's confidence that full-year EBIT will be materially ahead of expectations."
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