Shares in digital learning company Learning Technologies (LTG:AIM) jumped over 7% to 159p following the release of a positive pre-close trading update for the full year 2021.
The company confirmed that revenues for the full year would be no less than £254 million and operating profit no less than £53.7 million, both significantly ahead of consensus forecasts.
The better than expected performance has been driven by two factors. First, the Content and Services division has witnessed a robust performance with revenues reaching 2019 levels. Second, the performance of GP Strategies, one of the mainstay training delivery and consultants acquired in October 2021, is running ahead of expectations.
ACQUISITION STARTEGY BEARING FRUIT
Three separate acquisitions were made during the first half of 2021. These were Bridge, a learning, performance and skills development platform, Reflektive which provides performance management software and PDT Global which provides online diversity and inclusion solutions. These businesses are now fully integrated and are making a meaningful contribution to revenue performance.
Numis media analyst Gareth Davies commented, 'The good 2021 results see us move up estimates. Shares have been under considerable pressure since September and represent very good value at current levels, we reiterate our buy and 275p target’.
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