Learning Technologies Group has pointed to high inflation and the growth in AI adoption as it posted a drop in revenues and cut back its forecasts.
The London-based edtech, which provides businesses with digital learning and talent management services, reported a 12% drop in revenue to £250m for the first six months of the year.
LTG cut back its full-year revenue guidance from between £480m and £500m to between £473m £493m owing to exchange rate fluctuations, and said it expected to land at the bottom end of the new range.
CEO Jonathan Satchell said: “Our industry has experienced softness in growth over the last two years driven by inflation resulting in lower budgets, declining global growth and the emergence of AI causing corporations to revisit historical ways of working.
“Whilst the lack of revenue growth is disappointing, the structural drivers of the learning and talent development market remain intact and support our belief that LTG will return to growth when market conditions improve.”
The company posted a more than doubling of pre-tax profits to £34 million during the period, and maintained its interim dividend of 0.45p.
LTG said it was seeking to ‘drive efficiencies’ to improve its financial performance. In July, the firm completed the sale of its vendor management platform, Vector, to French firm PIXID, for $50m cash. The company said it was also in the process of developing a new subsidiary, solely focused on all forms of federal US Government contracts, which is expected to become operational the first half of next year.
“We continue to concentrate on simplifying our portfolio, thus sharpening our focus on learning and talent development,” Satchell said.