17 September 2024

 

Learning Technologies Group plc

HALF YEAR RESULTS 2024

 

Healthy profit growth and strong cash generation

Continued challenging macro backdrop

 

Learning Technologies Group plc, a global market leader in digital learning and talent management, announces half year results for the six months ended 30 June 2024. All figures relate to that period unless otherwise stated.

 

Strategic and operational highlights

●	Resilient performance in a tough macroeconomic environment.
●	SaaS and long-term contracts account for 76% of total revenues (H1 2023: 72%)1.
●	All major clients above $5 million annual revenue that were up for renewal in H1 2024 were successfully renewed and strong growth in LATAM and Leadership divisions of GP Strategies.
●	GP Strategies profits more than doubled in the three years since acquisition, reflecting margin progression and operational improvement actions.
●	Completed the sale of VectorVMS ("Vector") for $50 million as part of ongoing initiatives to simplify our portfolio and sharpen focus on learning and talent development.
●	Increased investment in AI product innovation including GP's Content AIQ Learning Platform, Human+ AI Learning Series, Rustici Generator and Bridge Learn and Develop. Early signs of customer uptake are encouraging.

 

Financial highlights

●	Organic constant currency revenue down 3.8% to £250.3 million, with the subdued macro backdrop affecting overall spending on learning and talent development activities, particularly in transactional and project work and softness in SaaS subscriptions:
	○	Content & Services down 2.9%;
	○	Software and Platforms down 5.9%.
●	Continued growth in profits and margin progression on a like-for-like basis2:
	○	Adjusted EBIT up 5% to £43.3 million.
	○	Adjusted EBIT margin increased to 17.3% (H1 2023: 15.3%) as the Group benefits from the successful commercial transformation of GP Strategies and focus on cost optimisation.
	○	Statutory operating profit increased 65% to £38.3 million.
●	Strong cash performance with cash conversion of 70%3 (H1: 65%).
●	Robust balance sheet with net debt as at 30 June of £57.5 million, reduced to c.£1 million at 30 August 2024 following the disposal of Vector.
●	Voluntary debt repayment of $25 million in July 2024.

 

US regulatory update

●	GP Strategies continues to be in constant dialogue with DCSA (Defense Counterintelligence and Security Agency), and is making good progress on resolving the issues pertaining to certain approvals, however there is more work to be done.
●	A new subsidiary, solely focused on all forms of US Government contracts, is in the process of being established. It is expected to become operational in H1 2025 and has applied to be eligible to work on new classified contracts.
●	No existing classified contracts are due for renewal imminently and the value of the contracts is not material in the context of total Group revenue and profit.

 

Dividend

●	The Board is pleased to declare an interim dividend of 0.45 pence per share (H1 2023: 0.45 pence).

 

Current trading and outlook

●	The Group previously expected revenue to be in the range of £480 million to £500 million and adjusted EBIT to be in the range of £88 to £93 million for FY 2024 (adjusting for the completion of the sale of Vector on 1 July). This range was based on an average GBP:USD rate of 1.26 for H2 2024.
●	Based on an average GBP:USD rate of 1.31 for H2, the ranges adjust to £473 to £493 million of revenues and adjusted EBIT of £86 to £91 million for FY 2024 (adjusting for the completion of the sale of Vector on 1 July).
●	The Board expects the Group to be towards the bottom of the range given current trading, in particular at GP Strategies.
●	The Board is focused on continuing to drive efficiencies whilst actively managing the portfolio to support a return to organic growth once market conditions improve.

 

Jonathan Satchell, Chief Executive Officer of Learning Technologies Group, said:

 

"LTG has delivered a resilient performance, with growth in adjusted EBIT of 5% on a like for like basis, and strong cash performance in a macroeconomic backdrop which remains challenging. 

 

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."

 

Financial summary: 

 

	Continuing
£m unless otherwise stated	H1 2024	H1 2023	Change
Revenue	250.3	284.6	(12)%
Revenue like-for-like4	250.3	268.2	(7)%
Organic constant currency	(3.8)%	0.1%
Software & Platforms constant currency	(5.9)%	(4.7)%
Content & Services organic constant currency	(2.9)%	1.8%
SaaS & long-term contracts	76%	72%
Adjusted EBIT	43.3	43.1	0.5%
Adjusted EBIT margin	17.3%	15.1%	+220bps
Adjusted EBIT like-for-like2	43.3	41.1	+5%
Adjusted EBIT margin like-for-like2	17.3%	15.3%	+200bps
Statutory operating profit	38.3	23.2	+65%
Statutory PBT	34.0	16.5	106%
Adj. Diluted EPS (pence)	3.496	3.293	6%
Basic EPS (pence) - continuing & discontinued	3.363	1.376	144%
Net Debt / (Cash)	57.5	108.4	(47)%
Dividend (pence)	0.45	0.45	0%

 

NOTES

1. Proportion of total revenues that are SaaS or long-term contracts increased to 76% although there was a slight decline in revenue in absolute terms to £191.4 million.

2. Excluding TTI Global Staffing contracts and Lorien Engineering disposed of in 2023 & 2 Jan 2024 respectively, at 1.23 average H1 2023 USD/GBP FX. 

3. Adjusted operating cash flow as a percentage of adjusted EBIT. Adjusted operating cashflow is cashflow in the period after accounting for operating activities and capital expenditure.

4. Excluding TTI Global Staffing contracts and Lorien Engineering disposed of in 2023 & 2 Jan 2024 respectively, and reclassification of pass-through revenue, at 1.23 average H1 2023 USD/GBP FX.

 

Analyst and investor presentation:

 

LTG will host an analyst and investor webcast at 09:30 today, 17 September 2024. The registration link can be found below:

 

https://attendee.gotowebinar.com/register/7598785774527469662

 

Enquiries:
Learning Technologies Group plc Jonathan Satchell, Chief Executive Kath Kearney-Croft, Chief Financial Officer	+44 (0)20 7832 3440
Deutsche Numis (NOMAD and Corporate Broker) Nick Westlake, Ben Stoop, Tejas Padalkar	+44 (0)20 7260 1000
Goldman Sachs International (Joint Corporate Broker) Bertie Whitehead, Adam Laikin	+44 (0)20 7774 1000
FTI Consulting (Public Relations Adviser) Jamie Ricketts, Emma Hall, Lucy Highland, Jemima Gurney	+44 (0)20 3727 1000

 

 

 

About LTG

Learning Technologies Group plc (LTG) is a leader in the growing workplace digital learning and talent management market. The Group offers end-to-end learning and talent solutions ranging from strategic consultancy, through a range of content and software platform solutions to analytical insights that enable corporate and government clients to close the gap between current and future workforce capability.

 

LTG is listed on the London Stock Exchange's Alternative Investment Market (LTG.L) and headquartered in London. The Group has offices in Europe, North America, South America and Asia-Pacific.

 

 

 

 

 

Chief Executive Review

 

Introduction

Learning Technologies Group plc is a global market leader in learning and talent technologies and services. Our purpose is helping organisations to transform through their people.

Our portfolio is diversified including businesses that provide services, content, software and platforms to the learning and talent development market. Our clients include large, medium and small corporates as well as educational institutions, with a concentration in North America where we derive the majority of our revenue. We believe our people, scale, diversification and holistic offering are differentiating features within an industry that is both large and fragmented.

Our strategy has three core pillars including (i) grow and strengthen our existing businesses, (ii) operate more efficiently and (iii) actively manage our portfolio.

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. However, the structural drivers of the industry remain strong as there is significant ongoing business transformation requiring training, and companies are focused on aligning skills with organisational objectives through training and technology. AI is evolving at a rapid pace, creating growing needs for training, and employee trends are towards moving jobs more frequently creating a demand for onboarding and upskilling.

Despite the revenue softness, LTG continues to deliver profit growth and healthy cash flow. We continue to concentrate on simplifying our portfolio, thus sharpening our focus on learning and talent development. As part of our strategy we recently closed the divestiture of Vector for a cash consideration of $50 million on a cash and debt free basis (net proceeds c.$35m after tax and costs) which alongside a voluntary debt repayment resulted in an approximately neutral net debt position as at 30 August 2024.

Notwithstanding the current challenges, we believe that LTG will return to growth driven by a combination of heightened focus on execution to take advantage of long-term structural drivers, portfolio management, acquisitions and an improvement in market conditions.

H1 2024 Performance Highlights

Revenues for the six months to June 2024 declined by 3.8% on a constant currency organic basis. The decline in revenue was driven by continued lower transactional and project revenues in our Content & Services division, PeopleFluent declines within Software and Platforms and a subdued macro backdrop impacting overall spending on learning and talent development activities.

Group adjusted EBIT for the first half grew by 5% year over year and group adjusted margin in the first half of the year was 17.3% versus 15.3% in H1 2023 (all on a like-for-like basis). The margin progression was driven primarily by continued execution of GP Strategies' commercial transformation and efficiencies across the group.

LTG is a highly cash generative business and is also delivering incremental proceeds through disposals. Net debt as at 30 August 2024 was £1 million, following the disposal of Vector and a voluntary additional debt repayment of $25 million. Net debt as at 30 June 2024, was £57.5 million (FY 2023: £78.6 million) before accounting for the Vector proceeds.

Our long-term services and SaaS contracts accounted for 76% of revenues in H1 2024 and provide a strong base and durability in earnings.

 

Operational Review

The Content and Services division includes GP Strategies, Affirmity and PRELOADED and comprised 73% of revenue and 60% of Adjusted EBIT in H1 2024.

The Software and Platforms division reflects the results of our software companies including Rustici, Bridge, Breezy, OpenLMS, and PeopleFluent. The Software and Platforms divisions comprised 27% of revenue and 40% of Adjusted EBIT in H1 2024

Content & Services

Revenue decreased by 2.9% on an organic constant currency basis.

GP Strategies experienced strong growth in Leadership & Advisory and in Latin America which was offset by softness in Managed Learning Services, Learning Experience and Government divisions driven by lower activity from our existing client base and a softer pipeline. Their strategic focus remains on driving more cross-selling within divisions, gaining market share in emerging markets and sectors requiring business transformation, and AI enabling the entire business to be more productive for customers.

With regard to AI initiatives, client uptake of GP Strategies new ContentAIQ platform has exceeded expectations and their leading Human + AI training program remains one of the pre-eminent programs for leadership across the Fortune 500 client base. Third parties continue to recognise GP Strategies' leading expertise and capabilities, with the firm winning 30 Brandon Hall HCM Excellence Awards in the last 12 months.

PRELOADED experienced lower activity in the first half including a delay in a large contract, however clients are starting to become more active. Affirmity delivered healthy revenue growth during the period driven by continued new client wins and upselling.

Software and Platforms

Revenue decreased by 5.9% on an organic constant currency basis. Individual business performances were as follows:

●	Rustici: Continued strong performance in H1 2024 with a number of new AI enabled products coming to market including Rustici Generator (AI driven content processing service).
●	Bridge: Incurred higher than expected renewals churn in H1 driven by temporary factors including restructuring of sales teams and spend scrutiny. The new Bridge 'Learn and Develop' solution which brings Skills-focused, AI enabled technology derived from the Patheer acquisition, is landing very well with existing customers and new prospects.
●	Breezy: The macro impact of small medium business (SMB) hiring weakness continues to impact the business in 2024.
●	OLMS: There were lower than expected new customer bookings in H1 however underlying ARR grew in Q2. The new leadership team has conducted a thorough review resulting in a full understanding of the challenges and is initiating many positive strategic changes.
●	PeopleFluent: Renewals churn was higher than expectations. They are launching a new product enhancement on Skills and AI called Stories which will address key perceived deficiencies in the Learning Product and we expect this to have a positive effect on retention.

 

Corporate Governance

As previously announced, Simon Boddie was appointed as Senior Independent Director with effect from 8 July 2024. I thank him for his continued support to me and the executive team.

 

GP Strategies Regulatory Update

As a US company that performs work for the US Government, GP Strategies requires certain approvals and is subject to restrictions intended to protect classified information.

In July 2024, LTG was notified by GP Strategies of the invalidation ("temporary suspension") of the eligibility for GP to work on new classified contracts. The GP executive team continues to be in constant dialogue with the DCSA (Defense Counterintelligence and Security Agency) and is making good progress on resolving the issues pertaining to certain approvals, with full resolution our key objective.   

A new subsidiary, solely focused on all forms of federal US Government contracts, is in the process of being established. It is expected to become operational in H1 2025 and has applied to be eligible to work on new classified contracts.

GP Strategies continues to work on existing classified contracts, however one customer has paused their contract which has a revenue impact of c.$200k in 2024. No other contracts are due for renewal imminently, and the value of the contracts is not material in the context of total Group revenue and profit.

Dividend

On the 28th of June 2024, the Company paid a final dividend of 1.21 per share, giving a total dividend for 2023 of 1.66 pence per share, up 3.8% over 2022. The Board is pleased to declare an interim dividend of 0.45 pence per share (H1 2023: 0.45 pence per share). This dividend will be paid by 28 October 2024 to all shareholders on the register as at 4 October 2024.

Current Trading and Outlook

The Group previously expected revenue to be in the range of £480 to £500 million and adjusted EBIT to be in the range of £88 to £93 million for FY 2024 (adjusting for the completion of the sale of Vector on 1 July). This range was based on an average GBP:USD rate of 1.26 for H2 2024. Based on an average GBP:USD rate of 1.31 for H2, the ranges adjust to £473 to £493 million of revenue and adjusted EBIT of £86 to £91 million for FY 2024 (adjusting for the completion of the sale of Vector on 1 July). The Board expects the Group to be towards the bottom of the range given current trading, in particular at GP Strategies. The Board is focused on continuing to drive efficiencies whilst actively managing the portfolio to support a return to organic growth once market conditions improve.

 

 

Jonathan Satchell

Chief Executive 

17 September 2024

 

Chief Financial Officer's Review

 

In the six months ended 30 June 2024, in a challenging macroeconomic climate with a weaker US dollar, revenues for continuing operations were £250.3 million, reflecting a 3.8% organic constant currency decline. On a reported basis, revenue from continuing operations decreased 12% from £284.6 million. The Group has experienced resilience in SaaS and long-term contracts versus project-related and transactional revenue with the proportion of this category reflecting 76% of Group revenue from 72% in H1 2023. 

 

Revenue in Content & Services decreased 5.9% to £183.7 million on a like-for-like basis¹ and 13% on a reported basis (H1 2023: £211.5 million), with the division now accounting for 73% of Group revenue (H1 2023: 74%). Organic constant currency revenue declined by 2.9% (H1 2023: 1.8% growth), originating in GP Strategies and PRELOADED, which was partially offset by growth in Affirmity. Long-term contracts accounted for 70% of the division's revenue, an increase from 65% in H1 2023. GP Strategies H1 performance reflects continued softness in transactional and project-related work, alongside a lower number of learners in some Managed Learning Service contracts, partially offset by strong growth in LATAM and Leadership divisions. GP Strategies also continued to benefit from the commercial transformation strategy with year on year margin improvements. PRELOADED revenue experienced slower than expected sales conversion, and Affirmity revenue benefitted from growth predominately in long-term contacts.   

 

Revenue in Software & Platforms decreased 9% to £66.6 million (H1 2023: £73.1 million) with the division representing 27% of Group revenue (H1 2023: 26%). On a constant currency basis Software & Platforms declined 5.9% (H1 2023: 4.7% decline) driven by the structural decline in PeopleFluent, lower revenue in OpenLMS due to fewer large services deals with partners and business migrations, the continued reduction in Reflektive revenue driven by primarily technology sector customer churn, and some slightly higher churn and lagging renewals within Bridge. In Breezy, we continue to see stability in SaaS revenues, but challenges remain in transactional revenues. These challenges were partially offset by continued strong growth in Rustici due to higher utilisation of its products.       

 

Adjusted EBIT on a like-for-like basis increased 5% to £43.3 million from £41.1 million with a resulting adjusted EBIT margin of 17.3% up from 15.3% in H1 2023 driven primarily by cost control and continued focus on the successful commercial transformation programme within GP Strategies, offset by lower revenue as outlined above. Reported adjusted EBIT for continuing operations was broadly in line with prior year of £43.1 million.

 

Adjusted EBIT margin for continuing operations in the Content & Services division at 14.2% (H1 2023: 11.7%) was driven by the benefits of GP's commercialisation strategy supplemented by the release of prior year share-based payment costs resulting from leavers and prior year performance criteria not being met. Software & Platforms adjusted EBIT margin increased from 25.1% in H1 2023 to 25.8% due to cost reduction and lower share-based payment costs. 

 

The Group reported a 65% increase in statutory operating profit of £38.3 million (H1 2023: £23.2 million) which is stated after amortisation of acquired intangibles, various transaction costs and earn-out charges, profit or loss on disposal of fixed and non-core assets, cloud computing and integration costs. Amortisation of acquired intangibles decreased to £15.9 million (H1 2023: £16.6 million). Acquisition earn-out charges decreased to £0.2 million (H1 2023: £1.1 million). Contingent consideration arrangements are in place for eCreators & PDT and are dependent on challenging incremental revenue growth targets. Net profit on disposal of fixed assets was £0.1 million (H1 2023 loss: £0.9 million).  Profit on disposal of non-core asset was £12.3 million (H1 2023: nil), relating to the sale of the Lorien business on 2 January 2024. Cloud computing costs were £0.2 million (H1 2023:  £0.1 million). Costs of integration decreased to £0.4 million (H1 2023: £1.2 million) related to the final stages of the integration of GP Strategies including legal costs related to the US regulatory issue. Disposal costs for H1 were £0.8 million (H1 2023: £0.1 million) related to the disposal of Vector completed 1 July and active portfolio management. For further details of the items excluded from statutory operating profit see note 6.

 

Net finance expenses of £4.3 million (H1 2023: £6.7 million) include interest on borrowings of £5.7 million (H1 2023: £7.0 million), £0.2 million (H1 2023: £0.3 million) relating to the Group's leases under IFRS 16, and £1.6 million interest receivable (H1 2023: £0.5 million). 

 

The Group reported a profit before tax of £34.0 million for the six months ended 30 June 2024 (H1 2023: £16.5 million). The tax charge of £7.4 million (H1 2023: £4.5 million) is primarily driven by applying UK and international tax rates to associated results after adjustments for non-taxable disposals, as well as the derecognition of deferred tax assets related to prior year losses in Puerto Rico due to declining operations in this territory (note 4).  

 

Basic earnings per share for continuing and discontinued operations in H1 2024 was 3.363 pence (H1 2023: 1.376 pence). Adjusted diluted earnings per share for continuing operations as set out in Note 9 was 6% up on the prior year at 3.496 pence (H1 2023: 3.293 pence) reflecting slightly higher adjusted operating profit, lower net interest costs and slightly higher number of shares including the potential dilutive impact of share options.

 

Gross cash of £78.5 million and net debt of £57.5 million excluding £8.8 million of lease liabilities, at 30 June 2024 compares with gross cash of £72.5 million and net debt of £78.6 million, excluding £11.3 million of lease liabilities, at 31 December 2023. The covenant net debt / adjusted EBITDA ratio was 0.5x in June 2024 (0.7x in December 2023). A further voluntary repayment of $25.0 million (£19.5 million) was paid on 10 July using part of the Vector sale proceeds (note 17).

Cash generated from operations was strong at £37.7 million (H1 2023: £32.6 million) as we continue to manage working capital and reduce property leases, and net cash flow from operating activities was £27.1 million (H1 2023: £26.7 million).   

 

Free cash flow³ was £29.9 million (H1 2023: £5.6 million) as set out below.

 

£m	H1 2024	H1 2023	Variance
Statutory operating profit	38.2	23.2	15.0
Adjusting items	5.1	19.9	(14.8)
Adjusted EBIT	43.3	43.1	0.2
Depreciation & Amortisation	6.9	7.1	(0.2)
Share-based payment charges	0.9	3.1	(2.2)
Dec / (Inc) in working capital2	(12.1)	(13.3)	1.2
Capital expenditure	(6.3)	(7.2)	0.9
Lease liabilities	(2.3)	(3.2)	0.9
Other	(0.1)	(1.6)	1.5
Adjusted operating cash flow3	30.3	28.0	2.3
Cash Conversion3	70%	65%	5% pts
Interest paid	(6.5)	(11.1)	4.6
Interest received	1.6	0.5	1.1
Tax paid	(10.6)	(5.9)	(4.7)
Integration & disposal costs	(1.1)	(1.2)	0.1
Earnout & contingent consideration	(0.1)	(4.7)	4.6
Proceeds from asset sale	16.3	-	16.3
Free cash flow3	29.9	5.6	24.3

 

¹ Excluding Lorien and TTI contracts disposed of in 2023, and reclassification of pass-through revenue, at 1.23 average H1 2023 USD/GBP FX.

² Excludes integration & transaction costs

³ Alternative Performance Measure (APM) term defined and explained in the Glossary

 

Adjusted operating cash flow was £2.3 million higher than H1 2023 primarily reflecting lower working capital, capital expenditure and lease payments, offset by lower share-based payment charges. Cash conversion was 70%, an improvement from 65% in H1 2023. 

 

Net interest payments decreased to £4.9 million from £10.6 million, following £4.5m paid in H1 2023 related to interest costs from 2022 payable in January 2023 as the loan was rolled for 6 months to mitigate interest rate rises in H2 2022. Tax payments increased to £10.6 million (H1 2023: £5.9 million) including a £3.6 million 2023 catch-up. Integration costs relate to the GP Strategies acquisition as we enter into the final stages of this process. £0.1m earnout payment relates to Learning Media Services in H1 2024 (H1 2023: Breezy and eCreators). Proceeds from asset sale were £16.3 million in H1 2024 (H1 2023: £nil), from the disposal of Lorien Engineering Solutions.    

 

Net assets increased to £443.7 million at 30 June 2024 (31 December 2023: £427.2 million) and total equity per share³ increased from 54.0 pence per share to 56.1 pence per share.

 

On 1 July 2024, Learning Technologies Group plc successfully completed on the sale of Vector to PIXID Group for a cash consideration of $50 million on a cash and debt free basis (note 22). Vector is a leading vendor management platform for contingent labour with operations predominantly in North America and also in the UK. By way of background, Vector was acquired as part of the $150 million PeopleFluent acquisition in 2018. For the full year ended 31 December 2023, Vector generated revenue and Adjusted EBIT of $11.4m and $7.1 million respectively. 

 

The sale of Vector is part of LTG's announced strategy to actively manage the portfolio, sharpening our focus on learning and talent development. The sale of Vector follows the completed disposals of TTi Global staffing contracts in 2023 and Lorien Engineering Solutions in January 2024.

 

 

 

 

Kath Kearney-Croft

CFO

17 September 2024

 

 

 

 

 

 

 

Consolidated statement of comprehensive income			Six months to 30 June 2024	Six months to 30 June 2023	Year to 31 Dec 2023
	Note		£'000	£'000	£'000
Revenue	3		250,328	284,582	562,305
Operating expenses			(211,164)	(258,320)	(499,642)
Share-based payment charge			(906)	(3,081)	(4,381)
Profit on sale of joint venture			-	-	425
Operating profit			38,258	23,181	58,707
Adjusted EBIT			43,347	43,115	98,539
Adjusting items included in Operating profit	6		(5,089)	(19,934)	(39,832)
Operating profit			38,258	23,181	58,707
Finance expenses	7		(5,927)	(7,243)	(14,132)
Finance income	7		1,644	539	1,032
Profit before taxation from continuing operations			33,975	16,477	45,607
Income tax charge	4		(7,366)	(4,472)	(13,015)
Profit after taxation from continuing operations			26,609	12,005	32,592
Loss on discontinued operations, net of tax	5		-	(1,125)	(3,138)
Profit for the period/year			26,609	10,880	29,454
Profit for the period/year attributable to the owners of the parent			26,609	10,880	29,454
Other comprehensive income:
Exchange differences on translating foreign operations			(1,489)	(11,920)	(20,169)
Total comprehensive profit / (loss) for the period/year			25,120	(1,040)	9,285
Earnings per share from continuing operations
Basic (pence)	9		3.363	1.518	4.121
Diluted (pence)	9		3.260	1.476	3.985
Adjusted earnings per share
Basic (pence)	9		3.607	3.387	8.069
Diluted (pence)	9		3.496	3.293	7.803
Earnings per share from continuing and discontinued operations
Basic (pence)	9		3.363	1.376	3.724
Diluted (pence)	9		3.260	1.338	3.601
Adjusted earnings per share
Basic (pence)	9		3.607	3.253	7.680
Diluted (pence)	9		3.496	3.163	7.427

 

 

Consolidated statement of financial position	Note	30 June 2024 £'000	30 June 2023 (restated) £'000	31 Dec 2023 £'000
NON-CURRENT ASSETS
Property, plant and equipment	11	2,013	2,433	2,217
Right-of-use assets	11	5,414	10,449	6,812
Intangible assets	10	461,098	512,059	493,016
Deferred tax assets	15	8,116	7,335	6,147
Other receivables, deposits and prepayments		1,601	2,145	2,093
		478,242	534,421	510,285
CURRENT ASSETS
Trade receivables	12	92,751	105,768	107,962
Other receivables, deposits and prepayments	13	15,092	14,620	14,374
Amounts recoverable on contracts		30,746	39,349	25,757
Inventory		1,313	2,403	1,260
Corporation tax		2,863	-	5,155
Cash and cash equivalents	14	78,503	78,132	72,522
Restricted cash balances	14	2,672	2,303	2,389
		223,940	242,575	229,419
Assets in disposal groups classified as held for sale	19	22,259	6,695	8,007
TOTAL ASSETS		724,441	783,691	747,711
CURRENT LIABILITIES
Lease liabilities		2,686	4,162	4,423
Trade and other payables	16	120,317	141,582	133,950
Borrowings	17	30,115	31,220	30,091
Provisions	18	1,038	1,621	2,026
Corporation tax		7,856	5,468	8,237
ESPP scheme liability		991	881	995
		163,003	184,934	179,722
NON-CURRENT LIABILITIES
Lease liabilities		6,152	8,486	6,913
Deferred tax liabilities	15	4,647	8,436	5,744
Other long-term liabilities		80	1,466	405
Borrowings	17	105,912	155,289	120,984
Corporation tax payable		-	763	756
Provisions	18	491	534	621
		117,282	174,974	135,423
Liabilities directly associated with assets in disposal groups classified as held for sale	19	413	4,137	5,335
TOTAL LIABILITIES		280,698	364,045	320,480
NET ASSETS		443,743	419,646	427,231
EQUITY
Share capital		2,967	2,967	2,967
Share premium account		318,698	318,698	318,698
Merger relief reserve		31,983	31,983	31,983
Reverse acquisition reserve		(22,933)	(22,933)	(22,933)
Share based payment reserve		19,777	17,674	18,974
Foreign exchange translation reserve		4,071	13,809	5,560
Accumulated retained earnings		89,180	57,448	71,982
TOTAL EQUITY		443,743	419,646	427,231