LTG have today issued a trading update up to the end of June, where they say first half revenue is up 62.5%. Their plan to build an international business with revenues in excess of £50 million appears to be on track.
At the end of June they had gross cash was £11.5 million, with net debt standing at £6.1 million. There’s further payments due from the NetDimensions purchase and some share options cash coming in, so adjusted net debt will probably end up about £9.8 million.
Some of the “synergies” from the NetDimension acqusistion include customer support teams being relocated to the geographical territories they serve, hosting services being migrated to Nashville, and the core technology team being headquartered in Hong Kong.
In other areas of the business, LEO has achieved 50% growth in sales with The Civil Service Learning contract which is delivered alongside KPMG progressing in line with expectations.
On the “games” side of the business, Preloaded and Eukleia are growing, whilst gomo (their cloud-based authoring tool) has won a number of “enterprise” contracts and Rustici continues to expand its recurring licence business.
Andrew Brode, Chairman of LTG, said:
“… strategic progress has been accompanied by strong underlying organic growth as we harness and integrate these technologies to deliver improved outcomes for our clients. As a result of the momentum in the business, the Board looks forward to the second half and beyond with confidence.”
More at eLearningScotland.