Learning Technologies Group PLC

Latest Results (22.12.2025):

Learning Technologies Group PLC — results for the six months to 30 June 2024 (H1 2024). The group reported revenue from continuing operations of £250.3m (reported decline 12% year‑on‑year; organic constant‑currency decline 3.8%). Adjusted EBIT rose to £43.3m (up 5% year‑on‑year) and adjusted margin improved to 17.3% (H1 2023: 15.3%). The business generated strong cash flow (free cash flow £29.9m) and completed portfolio moves (notably the sale of Vector on 1 July 2024), which together with a voluntary debt repayment materially reduced net debt by late August. The Board declared an interim dividend of 0.45p and remains cautious on near‑term revenue while targeting margin and cash improvements.

Headline financials

Revenues (continuing operations) £250.3m; organic constant‑currency revenue down 3.8%. Adjusted EBIT £43.3m (+5%); adjusted EBIT margin 17.3% (H1 2023: 15.3%). Statutory operating profit £38.3m (up 65% YoY). Basic EPS 3.363p; adjusted diluted EPS (continuing) 3.496p (+6%).

Cash, debt and disposals

Gross cash at 30 June 2024 £78.5m; net debt £57.5m (excluding £8.8m lease liabilities). The group completed sale of Vector for $50m on 1 July (net proceeds ~ $35m after tax/costs) and made a $25m voluntary debt repayment, leaving net debt approximately neutral (~£1m) as at 30 August 2024 per management. Free cash flow for H1 was £29.9m and cash conversion improved to 70%.

Dividend

Interim dividend declared 0.45 pence per share (H1 2023: 0.45p). A final dividend of 1.21p was paid on 28 June 2024, giving a 2023 total of 1.66p per share (up 3.8% on 2022).

Segment performance — Content & Services

Content & Services (73% of revenue) reported organic constant‑currency revenue down 2.9%. GP Strategies saw weakness in transactional/project work and some Managed Learning Services volumes, partly offset by growth in Latin America and Leadership & Advisory. Affirmity grew; PRELOADED experienced delayed large contract activity but client activity is returning.

Segment performance — Software & Platforms

Software & Platforms (27% of revenue) organic constant‑currency revenue down 5.9%. Rustici performed strongly with new AI offerings; Bridge faced higher-than-expected renewal churn but new AI/skills features are being rolled out; Breezy impacted by SMB hiring weakness; OpenLMS and PeopleFluent experienced softer bookings/renewals with product enhancements planned.

Durability of earnings

SaaS and long‑term contracts accounted for 76% of Group revenue in H1 2024 (up from 72% in H1 2023), providing a more durable revenue base versus transactional/project work.

Regulatory / operational risk (GP Strategies)

In July 2024 GP Strategies was notified of a temporary suspension of eligibility to win new classified US Government contracts (DCSA). Management says progress is being made with DCSA, the impact in 2024 is limited (c.$200k revenue paused), and a new federal‑focused subsidiary is being set up (target operational H1 2025) to address eligibility.

Outlook and guidance

For FY 2024, after FX adjustments management now expects revenue in the range £473–£493m and adjusted EBIT £86–£91m (post Vector sale). The Board expects performance toward the bottom of that range given current trading (notably GP Strategies) and is prioritising efficiencies, portfolio management and execution to return to organic growth when market conditions improve.