Learning Technology Group down despite improved results

AIM-listed digital services and equipment provider Learning Technology Group (LON:LTG) tumbled 4.26% to 116.80p (as of 14:00 BST) despite revenues climbing 85% during the six months ended 30th June. Profits before tax rose by 420% on the back of both the improvement in sales and a 660 basis point improvement in EBIT margins.

CEO Jonathan Satchell said: “In the first half of 2019 both our divisions have delivered a strong performance, with Software & Platforms delivering an increasing proportion of high margin recurring revenues from software licenses, and organic sales momentum greatly increasing in Content & Services.

“The Group continues to deliver excellent shareholder value by efficiently transforming recently acquired businesses, with PeopleFluent successfully integrated and expected to return to growth in 2020 and BreezyHR, acquired in April 2019, achieving significant growth and showing great promise.

“Our first half performance increased recurring revenues and robust current trading provides great confidence for the year ahead to deliver further organic growth, strong margins and excellent cash generation. On the back of this momentum, we are investing in H2 2019 to drive sales further, as well as supporting organic growth initiatives into 2020“.