Good progress8 Sep 2017 21:11
HALF-YEAR REPORT
Thu 07 Sep 2017 07:00
RNS Number : 0413Q
Tribal Group PLC
07 September 2017
7 September 2017
Tribal Group plc Half year results for the six months ended 30 June 2017
2017
2016
Change
Revenue
£44.2m
£45.2m
- 2%
Adjusted operating profit 2,3
£5.0m
£0.7m
+ £4.3m
Statutory profit/(loss) after tax
£1.6m
£(2.6)m
+ £4.2m
Operating cash flow
£0.8m
£4.6m
- £3.8m
Net cash
£5.5m
£5.7m
- £0.2m
Earnings per Share (diluted)
0.8p
(1.8)p
+ 2.6p
Operational Highlights
® Good first half performance; full year expectations unchanged
® Underlying4 revenue growth of 8%; underlying4 Annually Recurring Revenue growth of 4.6%
® Group returned to profit: profit up by £4.2m
® Total cumulative annualised cost reductions of £11.8m from start of programme in 2016, of which £2.8m additional annualised cost reductions achieved in first half of 2017
® Significant contract wins across all business units, including contracts closed at University of Sheffield and University of Malaya, and new QAS contracts in Middle East
® Completed acquisition of intellectual property from Wambiz, part of next generation Student Information System, branded as Tribal Edge
Financial Highlights
® Adjusted operating profit increased to £5.0m (H1 2016: £0.7m)
® Statutory profit increased to £1.6m (H1 2016: loss of £2.6m)
® Positive earnings per share of 0.8p (H1 2016: loss of 1.8p)
® Operating cash flow lower due to the end of the Ofsted "Early Years" contract and invoicing of new contract wins at the end of the period
Ian Bowles, CEO commented: "I am pleased with the progress we have made since my appointment, demonstrated in the H1 2017 results where, on a like-for-like basis, our revenues have grown by 8% with a significant improvement in profitability. Our expectations for the full year are unchanged and we look to the future with confidence."
1 Figures are unaudited
2 Adjusted Operating Profit is in respect of continuing operations, excluding intangible asset amortisation of £1.0m (H1 2016: £0.9m), restructuring costs of £0.7m (H1 2016: £1.5m), movement in deferred contingent consideration of £nil (H1 2016: £0.4m), net exceptional gain of £nil (H1 2016: gain of £0.1m), share based payments £0.7m (H1 2016: £0.2m) and gain on sale of Synergy of £nil (H1 2016: £0.3m).
3 Adjusted Operating Profit is considered a Key Performance Indicator of the Group. We consider this to represent the underlying performance of the business and provides greater clarity to users of the accounts.
4 Underlying revenue growth and Annually Recurring Revenue growth is after adjusting for the Ofsted Early Years contract which expired in March 2017 (H1 2017: £2.9m; H1