Shares in Learning Technologies Group (LTG) have fallen after the company announced that it anticipates a decrease in revenue for 2023, as well as flat first-half organic revenue growth compared to the previous year.
As of 0812 GMT, shares were down 15% at 71.85 pence, representing a decrease of 12.70 pence.
LTG, a digital learning specialist based in the UK, cited a longer sales cycle as the primary reason for the lower-than-expected levels of transactional and project-based work. This situation has been particularly pronounced among its financial services and technology clients.
In light of these challenges, the company projects that its full-year revenue will range between £550 million and £570 million ($709.7 million-$735.5 million). It also forecasts adjusted earnings before interest and taxes (EBIT) to fall within the range of £98 million to £103 million. By comparison, LTG reported revenue of £596.9 million and adjusted EBIT of £100.9 million for 2022.
For the first half of 2023, LTG expects revenue to exceed £283 million, up from £277.8 million in the same period of the previous year. Additionally, adjusted EBIT is projected to be no less than £43 million, compared to £43.5 million in H1 2022.
Despite the decline in revenue and prolongation of sales cycles, LTG highlights the resilience of its Software as a Service (SaaS) and long-term services contracts.