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20 April 2011
Trading Update and Sector Change
Restoration of Dividend Proposed
ILX Group plc ("ILX" or the "Company", AiM:ILX), the AIM quoted provider of e-learning software and consulting services, is pleased to provide an update on trading for the year ended 31 March 2011. The Company expects its results to meet market expectations.
Turnover from continuing operations is expected to be £12.9 million (2010: £11.9 million) and profit before tax from continuing operations is expected to exceed £1.4 million (2010: £0.8 million), representing growth in excess of 75%.
The UK Best Practice operations have had a strong year, maintaining sales and improving margins despite the difficult economic climate. This trend has continued into the current financial year with the recently announced major contract win which is not only substantial in its own right but will give ILX the ability to work with and to influence some of the key decision makers in Government.
The International division has shown very strong growth during the year with sales up by 70% to £3 million and its contribution to operating profit almost doubling. The Australian office in particular has exceeded expectations, achieving sales in its first year of AUS$2.3 million, including a $180,000 contract with one of the largest state legislatures in Australia, to provide PRINCE2 and MSP Foundation e-learning and related consulting.
As a result of the capital restructuring, and based on the expected results, the Directors intend to recommend to shareholders at the AGM in September a resumption in the dividend payment, and for the year just ended to propose a payment of 1.5p per share, with the offer of a scrip alternative.
In addition, reflecting the increasing focus on a technology led learning model, ILX has sought and obtained a reclassification in sector from 2793 “Business Training and Employment Agencies” to 9537 “Software”. This change will be implemented with an effective date of 20 June 2011.
Ken Scott, Chief Executive, ILX Group plc commented:
“We have recently announced a number of major orders with international companies and with UK Government. Overall, the outlook for the current year is positive.
“The resumption of the dividend is a key part of our commitment to translate these results into shareholder value and we are hopeful that the change of sector will help investors understand more clearly the focus of the business and the scalability inherent in it."
For further information, please contact:
| ILX Group plc | FinnCap | Lothbury Financial Services Ltd |
| Ken Scott, Chief Executive Tel: 020 7751 7100 |
Corporate Finance Marc Young, Charlotte Stranner Tel: 020 7600 1658 Corporate Broking Tom Jenkins, Joanna Weaving Tel: 020 7600 1658 |
Michael Padley / Chris Roberts Tel: 020 7868 2010 |
