- Learning Technologies Group said it expected earnings to 'significantly' top expectations owing to improved margins and operational synergies realised from the integration of PeopleFluent.

Adjusted earnings (EBIT) was expected to be 'significantly ahead' of expectations at not less than £26.5m, above £14.0m a year earlier, the company said.

Revenues for the year, meanwhile, were expected to grow 80.4% to £94.0m from year earlier with recurring revenues increasing to 68% from 39%, driven by the 'transformational' PeopleFluent acquisition in May 2018, it added.

The company expected recurring revenues to be about 71% on an annualised basis.

As a consequence of the strong improvement in margins and good operating cash conversion, the net debt of the Group at 31 December 2018 was significantly better than the Board's expectations at £11.5m, up from £1.0m net cash last year, the company confirmed.

The 'exceptional' year of growth in 2018 had been achieved by 'building a compelling offering in the corporate digital learning and talent market and our track record of improving the operating model and performance of recent acquisitions, such as PeopleFluent and NetDimensions,' the company said.

'In November 2018, LTG announced a new strategic goal to achieve run-rate revenues of £200 million and run-rate EBIT of at least £55 million by the end of 2021. '

'It is encouraging to announce good early progress towards this strategic goal, alongside excellent cash generation, a strong balance sheet and an active pipeline of attractive acquisition opportunities.'

At 10:09am: [LON:LTG] Learning Technologies Group share price was +1.5p at 98.7p

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