- GP Strategies integration ahead of plan
- Eyes scale build into $100 billion digital market
- Shares have lost a third of their value this year
Investors can expect further forecast upgrades for Learning Technologies (LTG:AIM) after the online corporate training technology firm confirmed that strong 2021 trading had rolled over into 2022.
‘While mindful of the current macro environment, strong business momentum has continued into the first half of 2022 and we have a robust balance sheet that will support further strategic acquisitions in due course, underpinning the board’s confidence of significant progress,’ chairman Andrew Brode will say when he faces shareholders at the company’s AGM later today.
Brode has also said that integration progress of October 2021’s purchase of workforce transformation specialist GP Strategies is running ahead of plan.
In its results statement for 2021, released on 3 May 2022, Learning Technologies raised 2022 guidance after a swifter-than-anticipated improvement in the margins of GP Strategies. This followed the stock’s 7% jump in January this year after hinting at its progress during 2021.
SHARES LOST A THIRD OF VALUE
However, since then the stock has sunk, following other growth and tech companies lower. The shares had lost 33% before today’s 5% rally to 113.8p.
Now bigger and better placed, Learning Technologies hopes to continue to scale into the estimated $100 billion market for digital learning and talent management.
‘We are delighted by the progress made in the first half of this year and look forward to providing a trading update on 26 July,’ the chairman said. Underlining this confidence, chief financial officer Kath Kearney-Croft put an extra £100,000 of her own money into the shares.
In May, analysts at Berenberg and Numis raised 2022 forecasts for the company, with the 2022 range running at earnings of 7.4p to 8.3p per share on revenues between £531 million and £542.5 million.
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