Learning Technologies Group (LTG) Trading Update summary

Trading performance and financials

• Group revenues for 2024 expected to be at least £485 million, within the previously guided range, reflecting a c.5% organic constant currency decline due to macroeconomic, political, and AI-related uncertainty.

• Adjusted EBIT for 2024 anticipated to be at least £86 million, at the lower end of guidance, with an adjusted EBIT margin of approximately 17.7%.

• Net cash position improved to £3.0 million at year-end 2024, compared to net debt of £78.6 million at the end of 2023, aided by strong cash generation and the sale of Vector.

Regulatory and operational updates

• President Trump's rescinding of Executive Order 11246 will remove Affirmative Action obligations for US federal contractors from Q2 2025, expected to have a highly material negative impact on Affirmity's revenue and EBIT.

• GP Strategies' eligibility for new classified US government contracts was temporarily suspended in July 2024; a new subsidiary is operational for non-classified contracts and has applied for classified contract approval, expected to conclude in H1 2025.

2025 outlook

• Macroeconomic and political headwinds are expected to persist, impacting customer budgets and decision-making into 2025.

• Excluding the impact from the Affirmity business, revenue performance for 2025 is expected to be flat compared to 2024.