Learning Technologies Group PLC (LON:LTG), the digital learning specialist, said it has yet to see a material impact on its trading performance from the coronavirus (COVID-19) pandemic.
In its results statement covering 2019, the company said the current financial year has started well and it expects 2020 revenues to be largely unaffected by the global economic upheaval, although new business wins may be delayed and payment periods may be extended.
The group said it has seen an increase in activity at its Instilled LXP and newly acquired Open LMS businesses resulting in a large number of new contract wins.
It noted that gross cash at the end of March following the US$31.7mln acquisition of Open LMS was £25.0mln.
In 2019, the company posted adjusted earnings before interest and tax (EBIT) of £41.0mln, up from £26.0mln the year before, on revenue that jumped to £130.1mln from £93.9mln. Profit before tax surged to £14.3mln from £3.4mln in 2018.
Recurring revenue now accounts for 74% of turnover, up from 68% the year before, while revenue from outside the UK has risen to 80.0% from 74% in 2018, the group said.
It has proposed a final dividend of 0.5p, up from 0.35p the year before, but said payment of this will be postponed until market conditions normalise.
The group pointed out that it has taken several other actions to conserve cash including the payment of the deferred consideration for the acquisition of BreezyHR through the issue of shares instead of a cash payment of US$4mln that was due at the end of March.
Learning Tech said it expects to save more than £20mln in cash from its cost-savings measures.
"Despite the current market uncertainty I'm reassured by the strong and resilient position of LTG. We are well-positioned to further consolidate the digital learning and talent sector as opportunities emerge,” said Jonathan Satchell, chief executive officer of Learning Technologies said in the statement