Sign up USA
Proactive Investors - Run By Investors For Investors
Why invest in LTG?
Learning Technologies Group plc: THE INVESTMENT CASE

Learning Technologies puts down US marker as expansion continues

“[PeopleFluent] brings interesting technologies back to us … particularly in terms of interactive video and social collaboration tools”
Digital HR is PeopleFluent's business

Learning Technologies Group PLC (LON:LTG) made its first major step in the US market in April this year after it acquired digital human resources group PeopleFluent for US$150mln.

The acquisition is the latest push for the e-learning specialist, which has seen its value more than double in the last year, with shares climbing 127% from around 47p last May to 114p , giving a market cap of around £754mln.

PeopleFluent already has a foothold with big players in the US

PeopleFluent already works with 50 of Fortune’s list of the top 100 US companies and generated sales of £83mln and underlying profits [EBIT] of £9.2mln in 2017.

Aside from the obvious income prospects, Learning Technologies’ chief executive Jonathan Satchell says PeopleFluent could also bring technological innovation to the group.

WATCH: PeopleFluent 'a significant addition' to the Learning Technologies group

“[PeopleFluent] brings interesting technologies back to us … particularly in terms of interactive video and social collaboration tools” Satchell told Proactive, adding that PeopleFluent was one of those “unusual acquisitions where we’re not just acquiring a greater breadth of capabilities, some of their technologies …will actually be incorporated into our gomo [learning] and NetDimensions solutions”.

Satchell also says that the “constantly changing knowledge landscape” of the modern business environment gives prospect to the new acquisition as global corporations will “need to ensure their staff in the business are able to deliver at all times”.

The purchase will be Learning Technologies’ biggest to date, with recurring revenues for the enlarged group expected to rise to 68% of the total.

‘Serious’ institutions added to the roster

Satchell added that a share placing to help fund the PeopleFluent acquisition, which generated £85mln in funds and was “many times oversubscribed”, saw some “serious new institutions” added to the shareholder register.

The transformation nature of the acquisition hasn’t been lost on the board either, with Learning Technologies’ chairman Andrew Brode saying that the enlarged group will see an estimated “£135mln revenue and a strong platform for future growth”.

Trading ahead of expectations

The acquisition is the latest move for a company that shot past market expectations last year, posting an EBIT of £14mln, up from £7mln the previous year and “materially ahead of market expectation”, while revenue for the year increased 84% to £52.1mln.

The company also started 2018 trading ahead of expectations, leading analysts at City broker Numis to up their underlying pre-tax profit forecasts by 7%.

View full LTG profile View Profile

Learning Technologies Group plc Timeline

Related Articles

Mobile and tablet
September 07 2018
Ethernity specialises in technology that helps data traffic move efficiently in huge quantities
Jobs market
March 13 2018
A flexible jobs market, an increase in short-term contracts - all play to the strengths of the specialist in background checks
August 20 2018
One of the orders will be fulfilled over the next 18 months, the other over the current financial year

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright ©, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use