Learning Technologies delivers 'resilient' H1 performance

Learning Technologies posted a 2% year-on-year improvement in revenues to £64.1m but also turned in a 5% drop in adjusted underlying earnings to £18.4m as margins contracted to 28.7% from 31.1%.

Recurring revenues increased to 81% from 74% and earnings per share were up 1% at 2.251p.

As a result of the "robust performance and cash generation", the AIM-listed group said it intends to reinstate its 2019 final dividend of 0.50p - in addition to a proposed interim dividend of 0.25p.

Chief executive Jonathan Satchell said: "High levels of recurring revenue, momentum for new sales and an improving order book support the Board's confidence of delivering FY20 results in line with market expectations.

"We have an exciting and active acquisition pipeline and also a robust balance sheet to capitalise on the structural trends in digital learning and talent management."

Separately, Learning Technologies announced the proposed acquisition of Australian learning management systems commercial provider eCreator for an initial consideration of AUD $5.5m (£3.1m).

The acquisition will be funded from existing cash and was pegged to be immediately earnings enhancing.

As of 0955 BST, Learning Technologies shares were down 1.76% at 135.57p.