learndirect receive additional investment

Sky news have reported that learndirect have received an additional investment of £5 Million. According to the Sky News report the additional investment comes after learndirect prepare to potentially reveal a £70 Million loss. Back in September, learndirect received an Ofsted Grade 4, or inadequete Ofsted grade.  It is fair to say it has been a turbulent period for the training provider. 

So we asked the learndirect team for a bit more detail behind the investment and what this means to the business, their learners and staff:  

Andy Palmer 100x100Andy Palmer, Group Chief Executive, learndirect Ltd said:

“In a show of confidence learndirect Group’s lenders have committed to an additional investment of £5m for the period to 30 November 2018.  The learndirect Group has filed its statutory accounts for the 18 month period to the end of 31 January 2017, declaring its position as a going concern. 

“ It is no secret that the skills landscape is undergoing the most significant change for more than 30 years.  As a result, the management team has carefully considered its position and has set about diversifying its income streams to future proof the Group.

“Our levy business has had a successful start, enrolling c3000 apprentices since May 2017.  learndirect ltd has received an allocation for Adult Skills funding for the year to 31 July 2018 of £45.1m.  learndirect Professional Development, a new business stream, continues to go from strength to strength and successful delivery of our ESF contracts puts us in a position where we may see future growth.” 

Q1. According to the Sky report, LearnDirect has received additional investment. How much is this and why is this important?

A1.In a show of confidence learndirect Group’s lenders have committed to an additional investment of £5m for the period to 30 November 2018.  The learndirect Group has filed its statutory accounts for the 18 month period to the end of 31 January 2017, declaring its position as a going concern. 

Q2. The Sky report also states that LearnDirect has run at a loss for the past 18 months. How much was the loss and how will the investment make a difference to this?

 A2.The loss is principally driven by one-off exceptional items.  The underlying Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) is £7.5m.  Our lenders have given us a vote of support.  The investment supports the medium-term strategy of the group, which is to continue developing its ongoing businesses, particularly levy apprenticeships, learndirect Professional Development and ESF delivery.

Q3. What changes have been made within learndirect to rectify their past 18 months financial loss?

A3. It is no secret that the skills landscape is undergoing the most significant change for more than 30 years and as a result, pace and agility are crucial to the medium term future of learndirect.  The management team has carefully considered the position of the company and has set about diversifying its income streams to future proof the group. 

Our levy business has had a successful start, enrolling c3000 apprentices since May 2017.  learndirect ltd has received an allocation for Adult Skills funding for the year to 31 July 2018 of £45.1m.  learndirect Professional Development, a new business stream, continues to go from strength to strength and successful delivery of our ESF contracts puts us in a position where we may see future growth.  At this moment in time, the ESFA has confirmed that funding for Adult Skills provision will not be available after July 2018, due to the Ofsted grade 4.  However, the company is focussed and determined to improve this position to a grade 2 within the current financial year. 

Q4. What will the investment mean to learndirect in terms of addressing quality, services for learners and employers?

A4.  The investment provides continuity of service delivery, allowing learndirect to implement its quality improvement plans, to provide sustainability of services to learners and employers.

Q5. How could this investment potentially affect future Government funding?

A5. learndirect will continue its strategy of diversifying its income streams in the medium-term.

Q6. How will this additional investment help current and future learners?

A6. The investment provides continuity of service delivery, allowing learndirect to implement its quality improvement plan, to provide sustainability of services to learners and employers.

Q7. How will the additional investment affect current staff at LearnDirect?

A7.  The additional investment enables learndirect to continue in its day to day operations.

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