Learning Technologies Group (LTG) Trading Update summary

Trading performance and outlook

• H1 2024 reported revenue expected to be at least £248 million, down from £268.2 million like-for-like in H1 2023, impacted by FX headwinds from a weaker US dollar.

• SaaS and long-term services contracts, representing about 75% of revenues, remain resilient, while transactional revenues are subdued.

• Group adjusted EBIT for H1 2024 expected to be at least £43 million, up from £41.1 million like-for-like in H1 2023.

• FY24 revenue guidance set at £485–505 million and adjusted EBIT at £91–96 million; post-VectorVMS sale, guidance is £480–500 million revenue and £88–93 million EBIT.

• Net debt reduced to approximately £6 million as of 19 July 2024, following the VectorVMS disposal and a $25 million voluntary debt repayment.

US regulatory update

• GP Strategies' eligibility for new classified US Government contracts has been temporarily suspended due to compliance issues.

• GP Strategies continues to work on existing classified contracts, with no customer indicating intent to terminate.

• The Board considers the value of affected contracts immaterial relative to total Group revenue and profit.

• LTG is actively supporting GP Strategies in resolving compliance issues to restore eligibility.

Strategic and operational highlights

• Margin progression continues, primarily driven by commercial transformation at GP Strategies.

• LTG maintains a strong balance sheet and ongoing deleveraging.

• The Group will publish half-year results in September 2024.

• LTG operates under FOCI arrangements following the 2021 acquisition of GP Strategies, ensuring compliance with US regulations.