MIDAS SHARE TIPS: Fasten your belt as online trainer Learning Technologies Group gets ready for take-off
Cabin crew have to know what to do if passengers fall sick or have heart attacks during a flight.
To make sure they are equipped for the job, the Civil Aviation Authority insists they are trained every two years.
This used to involve five-day residential courses for every crew member, a costly and time consuming process.
High grades: Cabin crew have to know what to do if passengers fall sick or have heart attacks during a flight
Now the training is completed in eight hours online and crew can do the courses on computers or tablets, supplemented by a day of practical training. The time and cost savings for British Airways alone have been immense. It uses a course designed by AIM-quoted Learning Technologies Group.
Learning Technologies shares are 20¼p and the stock should rise considerably over the next three years. The management is extremely ambitious and the industry in which the company operates is expanding.
Last week, serial investor Nigel Wray gave the firm his seal of approval, increasing his stake to 3 per cent. Learning Technologies creates training courses and educational programmes that employees and children can do online.
Today, almost half of all training courses in the developed world are digital. Increasing regulation in almost every industry means that employees require more and more training.
Digital training is generally cheaper and more flexible than the face-to-face alternative, so it is growing fast. However, the market is fragmented so most courses are provided by small firms.
Learning Technologies chief executive Jonathan Satchell intends to buy up some of the best to create a company with £50million of sales by the end of 2017. Brokers expect sales of £15million for 2014 and £19million for next year, so Satchell has his work cut out.
However, he is extremely confident of success. He also has more than 20 years’ experience, including the sale of training business EBC to AIM-quoted Futuremedia in 2006.
The following year, Satchell joined struggling trainer Epic and bought the company in 2008 with Andrew Brode, chairman of translation group RWS (a firm that has grown substantially since Midas recommended it in 2009).
Last November, Brode and Satchell brought their new outfit to the stock market and renamed it Learning Technologies. Since then, they have acquired two firms, one involved in digital training and another, Preloaded, which is focused on learning through digital games and is growing fast.
Learning Technologies works with customers such as Jaguar Land Rover, delivering training for dealerships every time a new car is produced. Other large customers include the Ministry of Defence. Brokers expect profits of £1.6million for 2014, almost doubling to £3.1million in 2015.
Brode is a passionate believer in paying dividends, so 0.09p is forecast for this year, rising to 0.1p next year. Midas verdict: Brode and Satchell are a strong team, they are determined to build a large successful e-learning business and, as major shareholders, they are motivated to do well. At 20¼p, the shares are worth a punt.
Traded on: AIM
Ticker: LTG
Contact: ltgplc.com or 01273 468889
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