LONDON (ShareCast) - (Sharecast News) - Digital learning and talent management company Learning Technologies announced new financial objectives on Thursday, that it said would "capture" its opportunities in the industry, and the group's "strong" prospects.
The AIM-traded firm said its updated ambition was now to achieve run-rate revenues of £850m, and run-rate adjusted EBIT of £175m, by the end of 2025, taking into account the current "challenging" economic environment.

It said the financial objectives were intended to be met through 5% organic revenue growth, in line with the company's medium-term targets, and strategic acquisitions focussed primarily on software-as-a-service businesses, with the aim of rebalancing services and software revenues, the combination of which would continue to provide long-term visibility.

Learning Technologies expected that acquisitions would be funded through the use of internally-generated cash flows and "prudent" debt financing, with year-end net debt-to-EBITDA in the range of 1.0x to 1.25x.

"Society continues to change and advance at an astonishing pace causing an even greater need to upskill people," said chief executive officer Jonathan Satchell.

"We are very excited by the opportunity ahead for the group, following the transformative acquisition of GP Strategies, and the scale and array of expertise we have developed to meaningfully solve the increasingly complex challenges faced by large global organisations to recruit, train, develop, motivate, and retain the best talent.

"We are now recognised as a leader in this field."

Satchell said that since Learning Technologies joined AIM in 2013, it had set "ambitious targets" for revenues and adjusted EBIT, which it had consistently achieved.

"Our continued investment in research and development will drive the future of our business and capitalise on favourable industry dynamics.

"The scale of the potential, together with the strategy to deliver sustained growth, gives us confidence in the new 2025 strategic targets."

At 1228 BST, shares in Learning Technologies Group were up 3.98% at 107p.

Reporting by Josh White at Sharecast.com.

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