Learning Technologies Group - FY18 trading is ahead of management’s targets

Learning Technologies Group (LTG) released another strong set of results and trading post the year end is ahead of management expectations. The outlook is supported by a successful “co-ordinated selling” strategy, which has been driving cross-sales across the business units, creating sector-leading margins, and the order book is healthy. LTG is comfortably on target to double run rate revenues to £100m and achieve run rate EBIT of at least £25m by the end of 2020. While the shares look punchy on c 34x our FY19e EPS, the business is attractively positioned in an industry growing in double figures and we note that potential high-teen growth opportunities are hard to find across the broader market.