Good morning, everyone, and welcome to the LTG Interim Results 2021. My name is Claire Coley, and I'll be supporting the session today. Before we get started, I'd like to go over a few items so that you know how to participate in today's call. Our Chief Executive, Jonathan Satchell, and Chief Financial Officer, Neil Elton, will give an update on company performance. We will then answer questions. You may send in your questions at any time during the presentation, typing them in the questions pane within the software. When it comes to the Q&A, you will be unmuted and invited to ask your questions to members of the board directly. We'll announce you by name, and then your line will be opened to ask your question. In the event that we have a poor connection or cannot hear you, we will look for your typed question in the control panel. Now, let me please hand you over to our Chief Executive, Jonathan. Claire, thank you very much. Good morning, everybody. Thank you for attending our interim results presentation today. The highlights that we'd like to share with you first of all, naturally, revenues are up quite significantly. We did add some businesses at the beginning of this year, and we're getting a full first half contribution from businesses that we acquired last year. Revenues are up 29%, but more importantly, our organic growth is at 7% on a constant currency basis. I'm not going to go into more detail now because Neil is going to talk through that in a few moments, but I'm particularly pleased with the performance of the business and the bounce back from our content and services division in H1. We predicted it to you, and we've delivered it, and I'd like to just acknowledge the massive contribution of our staff in achieving that. Neil will talk about the strength of our balance sheet in this half, which as you know, is a reasonably consistent characteristic of the business, and it continues to be so. If I look at strategically what's happened during the first half of the year, an awful lot, quite frankly. Yes, of course, our business has operationally been focused on returning to growth after the pandemic. I'm very, very pleased to say that not just in the first half did content and services division deliver that growth, but it is sustained through right until now, and we see no sign of it abating. That gives me a lot of confidence about how the market has changed, and I'll talk about that later on. In particular, we've seen LEO accelerate out of the gates coming out of its strong Q4 into this year and continued. Preloaded with a bit more stuttering, it's starting to get back on a new sales pattern. I am delighted with the performance from Preloaded in its new contract wins over the last few weeks. It's been absolutely fantastic, and it gives a very strong indication for H2 and beyond. The other thing that we'll talk about later on is the integration of our most recent acquisitions, Bridge, Reflektive, and PDT Global, which in Reflektive you might remember, arrived in the group as loss-making. I'm absolutely very pleased to tell you that they are no longer loss-making. Actually, in fact, they are meaningfully profitable, both of them. It's back to that good old aspect of LTG, where we focus on the fundamentals. We don't do anything clever. We just get the fundamentals right, and it really changes the performance dynamics of the business. Open LMS, our big initiative from April of last year, continues unabated in its growth. We added a further business, eThink, at the end of last year, and you'll see further moves in that regard going forward. More on that later. Without further ado, I'm going to let Neil give you the detail on the financial results. One just point of note, of course, the big aspect of our conversation today may not be the backwards-looking results, but maybe forwards-looking in terms of what we're going to achieve when we complete our acquisition of GP. We're not ignoring it. We're going to talk to you about it lots. To avoid confusion or nuance, Neil is going to speak just purely to the core LTG numbers. Neil, over to you. Thank you, Jonathan. Good morning, everyone. In terms of headlines, as expected and reported back in the trading update we did in July, revenues advanced by 29% from GBP 64.1 million last year to GBP 82.6 million this year. That was in the context of some strong currency headwinds of about 9% between the US dollar and GBP. It represents, as Jonathan has said, 7% organic growth on a constant currency basis in the preexisting business, combined with organic growth in the businesses we have acquired in the second half of last year and the beginning of this year. I'll come on to more detail on the breakdown of the organic growth on a later slide. When you convert it into an advance in the EBIT margin by 20% to GBP 22 million from GBP 18.4 million last year. In terms of diluted earnings per share, that resulted in a 3% increase. That was impacted by the placing we did in May last year, we're seeing the full period impact of that. EBIT margin, that reduced from 28.7% last year to 26.7% in the first half of this year, primarily driven by FX headwinds. We expect margins in the second half of the year to return to more normal levels in the high 20% on a full year basis. Net cash, again, I'll come into more detail, but reduced to GBP 24.9 million at the end of H1. We did a refinancing in July, which I'll give a little bit more detail later on. Moving on to the next slide, gives us a little bit more detail on the trends we're seeing in revenue, and the key thing here is the continued diversification of our business. We saw a reduction in recurring revenue from 81% in H1 last year to 77% this year. That was in part driven by the expected bounce back we saw in content and services. It was also a change in the business mix with the acquisition of Open LMS and PDT in particular. Again, on a full year basis, we expect that to normalize around the 80% level. On the right-hand side there you'll see again a continuation of a trend we've seen over a number of years now, continued diversification of the geographical footprint of the business. Still very much predominantly in the U.S. market, but we're seeing an increase in the rest of the world proportion, and that was primarily driven by the acquisition of Open LMS, which has seen us branch out quite significantly into the Latin American market and also into the Australian market. The next slide looks at more detail of the divisional performance, and we look at the business in two separate divisions primarily. One is software and platforms. Software and platforms is typified primarily by recurring revenue. We operate with SaaS licenses, which we sell on a multi-year basis with the expectation of recurring contracts. There also tends to be a longer sales cycle for those, anywhere between six to nine months. During the period, we have seen organic revenue growth of 5% across that division. We have seen particularly robust growth in a number of divisions, including Breezy, Rustici, and Watershed. That has been partly offset by PeopleFluent, where we have continued to see some losses on a run-rate basis. We're still being impacted by some of the delays in the tender processes which resulted from COVID last year. Again, we think we are seeing a corner being turned on that one. In terms of expectations for the full year, we expect to see those trends continue for the second half of the year. In terms of EBIT performance, we saw a decline from 31% last year to 27%. That is primarily driven by the FX headwinds that I've already referred to, which in particular will impact the software division. Also the short-term impact with Reflektive and Bridge, which we acquired in the first half of the year. They were loss-making businesses at the point we acquired them, but we very quickly turned those around to profit, and they will deliver more normalized profits as we would expect to see in software and platforms division in the second half of the year. Overall, I would expect software and platforms on a full-year basis to deliver margins in the high 20%, closer to normal run rates that we have expected in previous years. In terms of content and services, very much as expected, we've seen a strong bounce back there, 14% organic growth in the year. Content and services is typified particularly by fixed-term contracts, very sticky customer relationships, but not necessarily recurring relationships, although there is some recurring revenue included within content and services. As Jonathan's mentioned, we've seen very strong performance there in our LEO business, and also Preloaded, which has a slower start to the year we are expecting to bounce back substantially in the second half of the year. The margin mix has actually changed quite substantially from H1 to H1. That is from 20% - 26% in H1 this year. That's mainly driven by the strong bounce back we're seeing in LEO, but also change in the business mix with the inclusion of PDT at the beginning of this year, which is a higher margin business than our other content and services businesses. I think it's fair to say that we should now expect margins within our content and services business to track around the mid-20%, whereas traditionally they have tracked in the low 20%. Moving on very briefly to look more at cash flow and the balance sheet. Again, we continue to see strong cash conversion in the business of 79% operating cash conversion, which is slightly down on the prior year. I think it's worth saying that we have seen some clients struggle to pay. We were surprised last year when payments continued pretty much unadulterated. We have seen some clients struggle, and we've made some provisions for doubtful debts this year in the first half of the year. Nevertheless, in H1, we have seen operating cash inflows of GBP 24.3 million, and we have fully deployed the placing proceeds we raised in May last year to do our strategic bolt-on acquisitions. There are outflows there of GBP 52.1 million, resulting in net cash of GBP 24.9 million. Very briefly, just subsequently to the balance sheet at the period end, as part of GP acquisition, we refinanced, and we have now got in place a new five-year loan facility with Silicon Valley Bank and Barclays, who were part of our previous syndicate, but also we have added Fifth Third Bank of Ireland as well and the Bank of Ireland to that mix for a $355 million facility, and you will see the covenants there. We have yet to draw down on that facility, but we will at the time of the GP close. Thank you. Neil, thank you very much. Now let's move to the strategic review, and we'll start with talking about our three acquisitions at the beginning of this year, Reflektive, PDT, and Bridge. All very different businesses that came into us in different states as well. Starting with the big acquisition, which was Bridge. You might recall we paid GBP 50 million for this business, doing just over GBP 20 million of revenue, making a modest loss of GBP 1 million - GBP 2 million a year. We bought it off Brian Whitmer and Devlin Daley, the owners of Instructure, because they wanted to purify and focus on the education market, and this was their corporate learning business. It is considered one of three very appropriate and popular learning management systems in the faster-growing mid-market segment of the LMS and talent management market. The other two being the Totara and Absorb. We are delighted with this business. We've now owned it for seven, eight months. Management team has really settled down. They have a very different approach in their go-to market. They're very learner-centric in the way they think about things. It is very different from PeopleFluent, for instance, which focuses on sort of complex configurable solutions where normally a large organization has a specific problem and need that they need to resolve. Bridge is much more about, this is the way to deliver a fantastic learner experience. Our product is configurable to a limited extent, but this is what we think is the best way for you to deliver learning and talent management in your organization. It takes a different type of approach from the customer, and we're getting great traction with that. It's growing nicely. It has returned to profitability. That's partly because we've optimized a few things within the business, but mostly not that at all. It's mostly been that we get some synergies. For instance, our hosting operations are now combined. The normal approach of the LTG mothership has really benefited the Bridge business. The other thing that I'm really excited about is that there are wonderful ancillary capabilities within LTG that preexisted. For instance, our Instilled learning experience platform, we're using very specifically the video capability within that, which is outstanding, and that is now integrated with Bridge. Our talent mobility platform that we bought in late last year, Patheer, much like it's been integrated with PeopleFluent, is also integrated with the Bridge product. Of course, it wouldn't be appropriate if we didn't enable our customers to author their content via Bridge. Very shortly, our Gomo authoring tool will become part of the Bridge offering as well. This is the power of the group. This is what we've created in terms of these individual software capabilities that then combine in a very nice way in a unified platform. It is truly really elegant, and Bridge has made a big difference there. I want to give the other angle here, which is what we hope for, but I have to say, it's happening faster than I expected. We know that at times we go with how would I describe it? Perhaps an over-cumbersome learning management solution, learning talent management solution to the market when we have PeopleFluent. It's great in certain circumstances, but it doesn't show well in others. We were in a long-standing negotiation with a very large organization, for about $1 million a year. This negotiation had been going a long time. They're an existing loyal customer of the group for Gomo and Watershed and other things. We mid-cycle, after we bought Bridge about three months in, we took the brave move of saying, "Let's just show you something else that we have. We know you haven't made your final decision yet, but we'd like to just show you an alternative." We showed them Bridge, and they were concerned about a couple of things that they needed to do to meet their requirements. We solved that problem, and they actually converted their purchase from a PeopleFluent solution to a Bridge solution. Now, clearly, we're not going to do this and steal PeopleFluent customers inappropriately, but where we believe that that will create a stickier longer-term relationship and it's a more appropriate software solution, it's given us something that simply in February of this year, we had no opportunity to do that. I think that just demonstrates the power of the breadth of capabilities and the software range that we now have. Indeed, at times, we may well even choose to convert existing customers' platforms from one to the other. Some really interesting situations going on there, and the optionality has increased dramatically. Reflektive slightly does a similar sort of thing, except it augments rather than converts. Reflektive is a really fantastic piece of performance management software used by a very large global investment bank. We've been implementing that over the last six months, and that's now done and going very well. It's not just for the mid-market, it can expand up into the enterprise market. We're also looking to bring that software not only as an integrated part of our Bridge and PeopleFluent solutions, but also, interestingly, we're going to take performance management tools down to the small and mid-sized business market. Breezy, as you know, has a great foothold there, and they already have a really successful go-to-market strategy and channel. A form of the Reflektive product is going to be made available to that channel very shortly. I'm particularly excited by that. We just have no idea how well that can go, but we think that's a really interesting market to tap. A few hundred people, who use Bridge's recruitment tool, will now have the opportunity to manage, performance manage their staff through an aligned tool with Breezy. Finally, on a very different note, we of course, as you know, had a long-standing, highly respected software business called Affirmity that provided the software that tracked diversity and equality within U.S. businesses. It was a regulatory requirement. That then generated enough data for Affirmity's consultants to generate affirmative action plans. That was all sort of, if you like, regulatory process driven, and it was very much the numbers and the output of a diversity challenge or problem. What we weren't solving was how to actually go to the next stage. We know that we have a lack of diversity in this particular area of our business. How do we resolve that? PDT Global brings a very different perspective. They bring the diversity, equality, and inclusion training to the organization. Also, of course, they bring that sort of highly regarded expertise in a fast-changing environment about how to actually deal with these things. We've been delighted with the inclusion of that business. It's performing well. As Neil alluded to, it's brought extraordinarily good margins. All in all, they've all bedded down well, and we're really delighted with those three acquisitions. I wanted to just also highlight something that we didn't make any acquisitions this year, but it was a burgeoning amount of acquisitions last year. We did three in the year, and that's our Open LMS business. Open LMS, as you know, if you've tracked LTG for a while, is our business that's focused. Slide's taking a while to update. Hopefully, it will get there soon. Neil, can you just nod for me? On my screen, I can't see whether the Open LMS slide is updated or not. Is it yours? It's not there yet. Have a go. We're on. There we are. We're supposed to be on good internet. Now we're back in London in the office, but clearly not at times. Open LMS is an open source software professional services provider. This is based around the Moodle open source learning management system, which is an incredibly popular global LMS. Been around for about 20 years. We saw the opportunity to want to invest and professionalize and put real scale behind a capability to host and provide services to the Moodle Open LMS, and also provide modified versions for the corporate market. We've done that, and what I'm immensely proud of is that through this year, they are all now being made available truly open source. I think we're pretty unique in this respect. Even Moodle's corporate learning management system, Moodle Workplace, is not completely open source. There is a licensing involved, and you can only buy it through certain partners who can provide it for you. We're actually genuinely open. Our code is available to anyone, and it's proving to be very popular. We're seeing great growth in that business. We've combined three businesses, the original Open LMS arrived with us April last year. We then bought eCreators in Australia in September, and eThink in Baltimore in the U.S. in December. Those three businesses are fully integrated. We're nearly integrated on all of the back end hosting. Not quite there yet, but we've made great progress. We'll be there by the end of the year. As I say, we're seeing strong revenue growth out of that business, and it's already achieved my sort of expectations of profitability. Neil said earlier, and I've said to a number of you in individual calls, this is not going to be the high EBIT margins of some of the proprietary software businesses we own, because we don't charge a proprietary software fee. We're charging a services fee to deliver software now. As an annual contract, it has all the characteristics, contractual ways of being a recurring revenue contract. It means that we don't have quite the same profit margin as before. It's a very healthy margin, around about 30% EBIT margin, not in the higher echelons of some of our other businesses. We see great opportunity for this, and where we've alluded to the fact that we will continue to make small to medium sized bolt-on acquisitions, in a very discerning way. We've got some busy work coming down the road, which I'm about to talk about with GP. Open LMS is most certainly a continuing candidate to make acquisitions with, because we think there are great opportunities still to come with that business. Again, it just gives us this breadth. We now have large enterprise software requirements covered by PeopleFluent, the mid-market by Bridge, augmented by the likes of Reflektive, Gomo, Instilled, et cetera. Then we have Breezy in the small and medium sized business market. Then for those customers that don't wish to pay a proprietary license fee, we have our Open LMS business. There are not many corners of this market now that we don't have a solution for, which I'm really delighted about. Let me move on. You might remember a couple of months ago, we announced a small acquisition called GP Strategies. My slide will move forward again. I'll talk to it, and slides will catch up eventually. Yes, this I think can only be described as a pretty audacious move by us. It had been something we'd tracked for almost three years. We were very excited about the strategic opportunity, but also about the potential financial opportunity with this business. The deal got delayed by COVID, but we eventually managed to get it done in July of this year, and I thank everyone for their support on this in terms of the investor support that we received for the placing. To just give you some reminders of the strategic imperative, which of course is the most important thing. GP Strategies is a very different business from us in the learning and talent space. It is focused on generating very serious, meaningful strategic relationships with large global organizations. The likes of General Motors, HSBC, Microsoft, Boeing, MetLife. Around the world, it has a footprint in almost all major business conurbations. It delivers managed learning services, e-learning content, learning delivery, a lot of consulting and strategic advice. Also that's augmented by implementation services for software platforms in the HCM space. If you look at those capabilities and you combine them with our software capability as our software product and our custom content capability, but we don't have anything like the strategic advisory capability, but you combine those things together, you can see the power of the combination. We believe we genuinely are on the brink of creating a truly dominant global force in the industry. It was a pretty audacious move. We've just reconfirmed today that we're very much comfortable with market consensus for this year, which is a smidge under GBP 180 million of revenue. That converts to not far off $250 million of revenue. This business, GP, is doing $500 million. It's a 1/ 2 ratio. This is an audacious move. We're going to be a $700 million-$750 million pro forma revenue business when this deal completes. That to me is pretty astonishing. Yes, the margins are not so good in GP. At the moment they're making circa 5% EBIT margin. We expressed confidence to you back in July when we announced the deal that we would achieve low double digit EBIT margins next year, providing the deal closed this year, which it will. I'll come on to that. I have to say now that we have had the benefit and the joy of being able to have access to GP within a couple of weeks of the announcement of the deal since August. Predominantly my Chief Operating Officer, Nick Bowen, and I have been in a major research mission supported by a number of colleagues, where we have done over 200 meetings with GP. They've been incredibly accommodating of this. Naturally, we have no control over the business. We make no decisions, and we're kept away from certain sensitive things while we're going through the regulatory process. We've had access to other areas, and we've been able to prove out our hypothesis, which we've done in abundance. We're very comfortable about that. Indeed, we're excited about potential upside to that. We can genuinely say to you that we are beginning to form the plan in conjunction with GP's leadership about how we will transition the business to an optimized operating model. At the same time, we are performing an even more important strategic exercise led by Piers Lea, our Chief Strategy Officer, where we are working in very close hand with GP's equivalent people where we are looking at the go-to-market strategy, how we're going to lead this with strategic advisory consulting capabilities, and how we will combine certain aspects of our service offering, and refine and elegantly embed what we do with each other. That's made better progress than I expected. There's still much to do, and that will be launched across a period in H1 next year. Everything that we're seeing at the moment makes us feel incredibly proud and delighted that we made this pretty scary move to buy a very big public company in the U.S. We wouldn't have been able to do it without some great support from our advisors. We really appreciated that. It is going to be, I've used this word a little too often, and I wish I'd reserved it for today, but it is truly a transformational deal that will make a very big difference to this organization as we go forward. Might just remind you that one of the things that concerned me at first, and might have concerned you, is that the revenue mix might look different. Although this GBP 500 million of revenue is mostly services, please don't forget that two-thirds of that revenue is on long multi-year contracts, some five, ten years, certainly five with incredibly loyal and satisfied customers like General Motors, who vote GP their supplier of the year many years running. There are multiple contracts, if we look at the nature of how they renew, I have to say that I view them very similarly to the confidence that I have in the current revenue base of our SaaS contracts in LTG. They're not SaaS contracts, they are services contracts. When you're delivering services at the right margin, the revenue visibility is extremely strong. Then, of course, they do have a chunk of one-off services contracts, as indeed LTG does in our content and services division. I'm extremely comfortable about the still high levels of visibility that we have in the new revenue mix when we complete this deal. I'm not going to spend too much time on this, but I wanted to give you a sense of the scale of capability that comes from what we've combined. As I said, you will see that LTG, which has never really been what I would call a strategic advisor from a consulting perspective, is going to land very strongly with its GP and LTG capabilities into the space that is, of course, dominated by the big consulting firms. We're going to be different. We can't do a broad range of consulting. We're going to be exceptionally focused on learning and talent development. Guess what? The pandemic has helped us here because that is a real challenge for organizations. They're grappling with pace of change, new things that people need to learn all the time. Of course, they now don't have the delivery mode that they had before. They don't have an entire workforce arriving in the office five days a week that they can potentially put into a classroom for half a day. That just doesn't exist anymore. They are all pivoting and thinking about how do we deliver a new, effective blended learning experience, which has been the main driver for LEO's growth in the last part of last year and the first half of this year, and it continues to look like it's going to happen. We're taking advantage of that. We are helping customers, advising them, and as we see all of these combined capabilities of GP and LTG come together, we will cover most aspects of customers' requirements. It's going to be a very interesting opportunity because we will remain devoutly focused on learning and talent development only. I think there's a great opportunity here because I cannot find or recognize a business that's like it. Finally, a few rudimentary things on progress. I've talked to the numbers, but you'll be aware that, Neil mentioned, the way we're financing this is with the placing that we made in July of GBP 85 million. We've already converted most of that to U.S. dollars to lock in the exchange rate. We have $300 odd million of debt refinancing available for us to draw down when we need it on completion. In terms of the path to completion, so Hart-Scott-Rodino, which is obviously the antitrust rulings, we have gone through the waiting period. There have been no objections registered, we are comfortable that we have got through that process. You never get a distinct approval, we have got through HSR. The shareholder meeting for GP is imminently going to happen. We are confident in the feedback that we've had that the deal will be approved on the 20th of September. Those are two big hurdles that we believe will be overcome. Finally, of course, we need to be very mindful, and we are indeed respectful of the fact that we require CFIUS clearance, CFIUS being the Committee on Foreign Investment in the U.S. We are, of course, a U.K. owner of a U.S. business, and we need to be aware that about 5% of GP's revenue comes from top-secret contracts with the U.S. military, NASA, et cetera. Naturally, the U.S. government is going to be very focused on their national security. We respect and understand that, and we're well into our conversations with the security agencies about how we're going to approach that. There is a draft agreement that is very well advanced. What we will be required to do is also have some outside directors on the GP board, not the LTG plc board, but the GP board, who will be security-cleared American citizens potentially with an expedition background, some of them who will assist us and if you like, chaperone us in our stewardship of the business to ensure that national security is maintained. I have to say I'm very happy about that. I don't fancy spending any time in a U.S. prison cell, so we will be respecting that with immense amounts of focus to ensure that we get that right. There's a funny way that CFIUS works because you have these 45-day periods, so we will either manage to get it done in the first 45-day period, which ends in early October, in which case I think you would see completion towards the end of October. We will go into another 45-day period, which means you won't see completion until towards the end of November. That's the way it feels like it's going to land at the moment. As I said, please don't underestimate the value of this intervening time period. We have had unbelievable collaboration and cooperation from the GP leadership team. We have been able to do an immense amount of research. We have found so much. Lots we didn't know, lots of affirmation of what we thought we knew. Lots of exciting new opportunities. We found a few businesses, frankly, that bear in mind, GP Strategies has a rich engineering heritage over the last five decades. We found a few businesses that won't be appropriate to continue with. We knew there would be, but we have discerned those more clearly now. There's a specialist engineering business that does prototype aircraft wings in California. I don't think there's a lot of learning connotation to that, so we will be working with them very closely to see how we can work elegantly to divest that business at an appropriate time. We'll be able to give more guidance about what relatively small amount of revenue we will divest probably during next year, and also where we anticipate growth and opportunities coming from. That will all come in terms of the information that we'll share around the time of completion or thereafter. For me, for now, what I'd say to you is that this is a major change to our organization. It's going to happen. It will happen in October or November, I believe. We're well prepared to then start to implement and execute our plans, in conjunction with GP Strategies leadership, where we have a great relationship and working hand in glove together. That will cause a transformation phase to occur predominantly in the first half of next year, but it will stretch into the second half. Once we've done that transformation, we have an optimized GP Strategies, we will begin to do some integration of certain aspects in 2022. The big integration where we bring together GP Strategies and LTG to be fully working together will properly hit the road in late 2022 and 2023. That's the plan, and we're very comfortable with that, and we're well advanced on it. I think in summary, I gave you a lot of detail there. I'd just say this to you. We're incredibly fortunate to be able to make a move like we are with GP, which is obviously such a big acquisition for us. You can only do that if you're not looking over your shoulder every five minutes thinking, "Where's everything going with the existing business?" We have an unbelievably firm concrete foundation in LTG, and I just want to pay tribute to all the people involved in delivering that. They are outstanding, and they pivoted to a remote working mode. Some of them are coming back to the office now. It's great to be back in here a bit. It feels good. We've got a great platform here. It's financially strong, and the acquisitions that we've made have integrated really well. Bridge and Reflektive are already profitable. I imagine there were a few skeptics that didn't think that would happen. We're really delighted with the overall performance of the business. Of course, having Preloaded and LEO back on full song is a delight too. We're comfortable about expectations for the full year, obviously we're already nearly three months into the second half, we should be comfortable by now. We're focused and excited about delivering and executing on the GP Strategies completion and getting on with the big tasks we've got ahead, we are not in any way complacent about that. We know the size of the task. We do feel the intellectual lift is similar to a smaller task. It's just the scale of the change that is going to be more difficult. We have deployed a dedicated change management team to help us do that. We are taking the size of the task very seriously, and genuinely, I'm not daunted by this. I'm absolutely excited by where we can be by the end of next year. It's truly incredible. Let's take some questions. Thank you for listening. Thank you very much, Jonathan. We're now going to begin opening lines to any questions that have been submitted during today's presentation. As a reminder, you can still submit your questions through the questions pane in the control panel. The first question that we have today is from Benjamin May. I'm just going to unmute you, Benjamin, so that you can ask your question directly to Jonathan or Neil. Morning, Ben. You should be live. You're self-muted, Benjamin. If you want to unmute, that'd be great. Can you hear me now, Neil? Okay, brilliant. Thanks. The joys of the internet. Yeah, indeed. Thank you for walking us through results this morning. I've got three questions, two on GPX and one on PeopleFluent. I'll start with the easy one, Neil, perhaps for you on PeopleFluent recovery. In your section earlier, you spoke about PeopleFluent reversing its trends seen in the first half. Does that mean should we be expecting neutral performance in the second half or actually a recovery to potentially growth in the second half? Will that be slightly further out? I'll start with that, and then I'll perhaps focus in on GP. Thanks, Ben. I think outlook for PeopleFluent in terms of second half, it will probably be still down on the second half of last year. We are seeing some good sales pipeline activity there. I think what it's worth saying is there's an element within PeopleFluent which relates to the implementation services. Depending on when those come through, that will then drive the revenue, I think to a certain extent, the timing of that will impact just what we see in PeopleFluent. Yes, I think neutral at best, maybe slightly down in the second half. Okay. On GP Strategies, I was having a look at their Q2 results. They saw very good revenue growth, I think upwards of 20% in Q2. Margins were slightly weaker. I think that's probably the fact that that's U.S. GAAP rather than an adjusted IFRS figure there. Can you just walk us through, perhaps, Jonathan, your view on the Q2 results? I'm sure you were watching them carefully when they had them. Yes. I'll follow up with another question just off the back of that, perhaps. If you just answer this one first, and then I'll go to that one. Of course, we were aware of Q2 results before we announced the deal on July the 15th, or whenever it was. Yes, very pleased to see the robust bounce back in revenue. Do bear in mind it was off a low comparable, so we need to take that into account, but it still, even so, was a bounce back. The nuance actually is they state as revenue their travel costs, which are substantial. Bear in mind, they do have an element of putting boots on the ground into training situations, for instance, in General Motors dealerships around the world. Travel is not an inconsequential sum. There was no travel in, or no meaningful travel in Q2 of 2021. That was what I would call genuine sort of fees, services growth in revenue. Pleased with that. Margins, yeah, all I think I can say is that margins are a concern. It is not culturally a business that has in the past focused on margin. Adam Stedham, the Chief Executive, is very much on a journey prior to our acquisition that was focused on delivering sensible revenue growth but at good margins. He'd started a journey that we're going to assist him on accelerating. I don't look at the margins and feel concerned. I look at the margins and feel there's a great opportunity there. Yes, to see the revenue growth is reassuring. Okay. That's good. Just lastly, I think you spoke and have just spoken about the margin progression opportunity within that business. What should we be thinking about sort of the top-line growth of this business post-acquisition? Is it a classic LTG larger acquisition where sort of two years in, that's when we should expect the revenue growth to progress? Given it's such a different business, perhaps that normal sort of way it would play out might be different? Yeah, I think it's an interesting question. I think it would be pretty ridiculous of me to think that we are not going to create some stutter and disruption in the business as we transform it and change it and integrate it. It's just ridiculous to think that, isn't it? It's bound to have some effect. I think reasonably I will plan and focus on perhaps flat year-over-year revenue, excluding any small businesses that we divest. Hope that my expectations are a little pessimistic. I think what you should think is very material growth in margins in 2022, and an expectation that revenue probably is maintained or grows very slightly. 2023, when the strategic intent of this deal becomes much more to the fore. Our view is simply create the concrete foundation in GP before we start really pushing off that and launching ourselves into all of the new strategic go-to-market aspects that we're looking forward to. They'll take a while to plan. They'll take a while to create the right branding for them. While we're doing that, we'll be making that business really fit and healthy. That's what 2022 is all about. Then, we have expectations on ourself for mid-single-digit revenue growth in 2023. Bear in mind, we're talking large numbers here. As I say, the pro forma is going to be a GBP 750 million revenue business. It would be lovely to think we can be 10%-15% revenue growth, but I don't know many businesses of that size that are achieving that. We're going to aim for mid-single digit. Great. That's great. Will you change your reporting currency to dollars at that? I just thought about that one just off the back of that remark in terms of being a GBP 750 million business. Should we expect that, Neil? I'm sure you probably don't want to have to deal with that. As a business, LTG has been predominantly in the U.S. for a number of years, 70%. It's something that the board regularly view, and we've reviewed for a number of years now. I think it's fair to say, not this year. We wouldn't make that change this year. Again, I think it is a question we'll very much be asking ourselves next year. Okay. Thanks so much. Appreciate it. Very diplomatic, Neil. Great stuff. Thank you. The next question that we have is from Jessica Pok. I'm just going to unmute you, Jessica. There you go. Can you hear me? If you'd like to ask your question. We can hear you. Yeah, fantastic. I've just got three questions, please. The first is on content and services. I think Neil alluded to this in his part, but it would be great to get some color on current trading for H2 and actually into Q1 of next year, assuming you have some visibility into next year. I'll just run through all my questions all at once. Second one is on GPX. One of the major opportunities you have flagged for GPX is obviously the potential to cross-sell the rest of the portfolio. Can you just talk a bit about which services and products you believe has the most potential to cross-sell to the GPX clients? Thirdly, you mentioned in your statements and you've talked about it today, that you've done quite a lot of research into GPX and there is indications of further upside which can be delivered. You suggested low double digits, EBIT, operating margin achieved in the short term. What kind of margin do you believe you can achieve for this asset over the medium term? Thank you. Yes. I love your final question. Yes, that's a naughty question. Okay, first one, content and services. I keep on waiting for a quarter of sales drop. We thought it would happen in June, July, August, September because Q3 is going to be a bit soggy, it's summer, et cetera. It hasn't. LEO's just gone Q4 bang. One, two, three. Sales keep on churning in at the sort of numbers that we expect them to at our upper levels. We're seeing no sign now of abating. Therefore, really, once you start making sales from October onwards, you're really delivering for H1 next year order book. You're not going to recognize a lot of that revenue this year. This year's revenue, as we've given in our confidence statement about meeting market expectations, is already virtually in the bag, quite frankly. We've just got to do the work. That's not insignificant, but it's there. We've told you about Preloaded, slower start to this sales acceleration, it's just gone mad and pop. It's literally this convergence of three or four major contracts, one of them $1.5 million. It's been really spectacular is what I would say. There's a lot of joy in that business and a bit of weeping and waiting and gnashing of teeth because they're going to have to get a lot more people, some contractors in to help them deliver the work over the ensuing three, six, nine months. Really interesting opportunity there. Feel really good about the order book we will inevitably carry into next year. I hope that answers the first question. In terms of GPX and what we think the cross-sell opportunities are, let's have a look at what we don't think they are. We do not believe that even though they have wonderful strategic relationships with the likes of HSBC and General Motors and Boeing and so on, that we're just going to be able to stomp in there alongside the account director and say, "Hey. We've got this great learning management system called PeopleFluent or Bridge. Why don't you swap to that one?" We'll just be laughed out of the court. It's not going to happen. Of course, we'll be in a good place if they decide that they want to change their system. We'll be in a great place to be able to agitate for that and have a conversation about future differences and so on. I think that big enterprise systems change is not something that GP necessarily is capable of causing to happen. It will just happen if it does. Where they, I believe genuinely we are able to cause customers to go, "Wow, this genuinely augments and improves our offering," and this is what we're excited about, is GP has already launched their own measurement Academy. That unbelievably coincidentally dovetails nicely with our Watershed learning analytics tool. That's a great opportunity. It's not conflicting. It's additive to what a customer already does. We see real opportunity for that. Much like authoring, of course, and indeed our Instilled learning experience platform or maybe particularly the video element of that could well augment a customer's own systems. There are great software opportunities. Rustici is probably already in there, of course, because it's in 70% of learning management systems around the world anyway. We might be able to well leverage off our Rustici situation as well. We're genuinely excited by that aspect. You then look at other things like, well, diversity, equality, and inclusion are a factor for every responsible organization throughout the globe. We have a solution that can be delivered. Our software solution is predominantly U.S. delivered, but our learning solution is delivered globally. We see great opportunities there, and we're already in conversations and cahoots with the GP learning team on looking at their DE&I solutions and our own and seeing how we will be able to work together once completion occurs. There's some really interesting things there. Do not underestimate the other aspect that's really interesting to us here. I think this is no idle boast. We will be the largest custom e-learning content producer in the world when you combine LEO and GP Strategies together. It will be well in excess of GBP 100 million of revenue, probably knocking on the door of GBP 150, and delivered pretty globally as well. We will inherit offshore development capabilities in India, and elsewhere. We're excited about that. What it will do is LTG has always positioned LEO at the upper premium end of the market. We've ignored and not tried to win what we would call the normal sort of course conversion type projects where you convert a classroom training course or a flash-based or technology course to HTML5. We will now have the efficiencies and the production capacity that enables us to attack that market with more gusto. There are some, maybe not cross-selling, we're not introducing something new, but we're basically broadening our capabilities, and we will be very dominant in that space. Really excited about what that can do for us as well. There are many others, but those are the first that I think about. I didn't mention Reflektive and Breezy. Breezy, I think less so with large enterprise clients. It's not really its focus. Reflektive performance management, well, as I've just said to you, one of the world's most respected, largest investment banks has rolled out our entire Reflektive solution, is delighted with it. We think there's some interesting opportunities there as well. Finally, your question about margin. Look, we're way too early to start giving any guidance to what we think GP's margins can be. All I will say to you is that our research has given us the most immense confidence about that low double-digit margin guidance we've given. We think there is risk to the upside. We think there are still some unknowns. There'll be things that we'll uncover that might not enable us to take margins further. We think a few of the divestments might actually have a beneficial effect on overall margin because some of them are low margin businesses. It's all to play for and, as yet, an unknown upside. Great. Thanks. Great. The next question that we have is from Gareth Davies. I'm just going to unmute you now, Gareth. There we go. Right. Morning, guys. Two quick ones from me. Apologies if I missed this, but in the response to one of the questions earlier, you mentioned that there were going to be potentially a few divestments in the context of GP Strategies. Can you just give us any feel for scale and the hope that you could do those in 2022? The sort of step beyond that, are there kind of unprofitable revenues that we should be mindful of as well that could kind of disappear when we're just thinking about that program? The 2nd question, again, related to GP Strategies, is you're obviously acquiring a strong Asian presence for that business. If we're thinking kind of three to five years forward in the context of LTG, are there the assets out there for you to be able to sort of balance up the portfolio with software type businesses in the Asian market? Does that excite you as a sort of possibility looking further out? Firstly on the potential divestments, there aren't many, and I would just want to be clear that we have already done some fireside chats and everything between the CEO of GP and myself in front of the entire workforce audience. I've indicated this to them, I'm not revealing anything that we haven't shared with our future colleagues beforehand. There are some very obvious businesses. There are only a handful now that do not have a learning and talent development connotation at all. I don't think that they will have an appropriate place in the group going forward. If you assume 5% of revenue at this stage, that's probably not going to be far off. Circa $25 million of annualized revenue that we'll probably divest ourselves of, and I see no reason why that won't happen by the end of next year. Clearly, if there are reasons why we need to spend more time improving performance before getting a better value for the business, then we'll wait. That would be my guess. That will be it's once and done. There will be a small divestment program, and then very much focused on the future. In terms of other revenues, I think it's too early to say, but there are what we would call a proportion of what we'd call genuinely pass-through revenue. They just make no margin on it at all. We think this distorts the picture very slightly. We may, and this is down to, we need further consideration on this and make sure that we're dealing with all the IFRS matters and so on, but it may be something that we don't declare that pass-through revenue in the future, which will also have a beneficial effect on margin. I don't want to focus on that because we're really going to benefit the margin by optimizing performance, not by playing with taking a bit of non-profitable revenue off the top line, but it may just be part of the tidy up. On your Asian question, look, I'm daunted and excited in equal measure by the APAC opportunity. What I'm thrilled about, we've wanted to be in APAC probably forever. I've always been really nervous about doing it ourselves, where we just start from scratch. I just think that's super dangerous. The fact they've got a really established presence there, it was probably established about five years ago, mainly due to the HSBC contract win. What a wonderful way to do it. A client causes you to go and gain that presence, and then they've worked on expanding it after that with further client wins. There's, I think, a great opportunity, certainly for the cross-sells I mentioned, the likes of Watershed, Reflektive, Instilled and so on, Gomo. I think there's a great opportunity, and we will of course use the distribution platform that they already have established to further that. I must confess, I haven't even vaguely thought about the idea of Asian software company acquisitions at this stage. That just feels some way off. When we get to know it and we get confident about the Asian market, then I think you'll see us become bolder in the moves that we make. If I move back to just future software company acquisitions for a moment, then I've said a couple of times, expect this, for want of a better term, lurch towards more services but on long-term contracts type revenue to be a temporary one. Inexorable direction of travel is that we are a technology and services enabled company. This is going to put us into a different league completely when we're the size that we're going to be as a combined entity. I think once we've settled everything down and we've demonstrated to ourselves and to you what the operating performance of the business can be, you might well see us lift our eyes to a different size of software company acquisition horizon. I'm not even allowing myself to think about that yet. That could be quite interesting. Fantastic. Thank you, Benjamin. Thanks, Gareth. Brilliant. Thank you. That's all of the questions that have come in for today. Unless any more come through, which, nope, I think that's it, and we'll end the call. Wonderful. Brilliant. Thank you very much for listening, everyone. Good to see you people. Not see you, but thank you.