Learning Technologies to close non-core business, sell another

The AIM-traded company had said in its half-year results on 22 September that it was planning to exit the two non-core assets as soon as it could.

On Monday, it said it intended to close one of the two small non-core businesses, the UK apprenticeship business, in early 2023.

“The financial impact and closure costs will be non-material,” the board said in its statement.

It said the business was expected to generate revenue of around £9m and adjusted EBIT of about £1.1m in the 2022 financial year, from the provision of apprenticeships for staff working in early-years education and care provision under a contract with the Education and Skills Funding Agency.

“The closure follows a decision by the board that the nature of the customer relationships and quality of the offering in the business do not match the high standards elsewhere in GP Strategies and the group, especially following a negative Ofsted report in late 2022.”

LTG said the other non-core asset was trading “well”, had an increased order book, and was a candidate for disposal in 2023.

The company said it was focussed on delivering the transformation and integration of GP Strategies, its new go-to-market strategy, as well as future value-enhancing acquisitions.

“As outlined at its capital markets day in October, LTG has a compelling market position following the transformational acquisition and successful integration of GP Strategies,” the directors added.

“This is expected to drive new growth opportunities in a $107bn addressable market in digital learning and talent management and supports the board's updated ambition to achieve run-rate revenues of £850m and run-rate adjusted EBIT of £175m by the end of 2025.”

At 1145 GMT, shares in Learning Technologies Group were down 0.87% at 113.7p.

Reporting by Josh White for Sharecast.com.