Prior to announcing interim results on 18th September, LTG have today issued a trading update for the half year period up to the end of June.
Announcing an expectation that revenues will not be less than £20.8 million for the first half of the trading year (an increase of 62.5%), the LTG Board highlighted their confidence in achiving their strategic ambition of building an international business with annualised revenues in excess of £50 million.
At 30 June 2017 gross cash was £11.5 million, compared to £5.3 million at 31 December 2016. Net debt was £6.1 million (from £8.5 million at 31 December 2016). After adjusting for funds due to remaining NetDimensions' shareholders and payments due as a result share options just prior to the end of the period, adjusted net debt was £9.8 million at 30 June 2017.
Following the successful integration of NetDimensions earlier in the year, the full benefits of synergies from the purchase will be realised from the beginning of 2018 as planned.
The integration of NetDimension has led to customer support teams being relocated to the geographical territories they serve, whilst hosting services are 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 compared with the first half of 2016, building a strong sales pipeline for the second half of the year. The Civil Service Learning contract, delivered alongside KPMG UK LLP, is progressing in line with expectations.
Preloaded has performed well, delivering a VR learning simulation for the Science Museum and Eukleia is seeing an increase in demand with the introduction of MiFID II regulations.
The cloud-based multi-device authoring tool, gomo, has won a number of key enterprise contracts, whilst 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."
The full announcement is available here.