Last checked at 24 Jan 2019 07:00
24 January 2019
Tribal Group plc
("Tribal" or the "Group")
Business update
Tribal (AIM: TRB), a leading provider of software and services to the international education management market, today announces the following trading update in respect of its financial year ended 31 December 2018.
The Group has continued the positive performance reported in the first half and the Board anticipates the EBITA for the full year to be materially ahead of expectations whilst revenues will be lower than last year, as expected. Operating margins are anticipated to be higher compared to last year as a result of improved operating efficiency and good cost control. As announced with the half year results, the full year results will include the impact to EBITA of IFRS15 revenue recognition which would otherwise have resulted in significantly higher profits.
The Group has seen good sales momentum winning four new name Universities in the UK Higher Education sector and a number of larger Further Education Colleges. QAS has performed well with additional business being won in the UK and abroad. The Australian and New Zealand Higher Education sector continues to perform well supporting existing customers. The Australian Schools sector has however been challenging; a restructuring plan has been put in place to improve future operating performance, and revenue growth in this sector is not expected. A non-trading restructuring charge of approximately £1m is expected to be made in respect of this.
The Group continues to improve margins by enhancing operating efficiency and driving cost reduction across all lines of business including central overheads, in line with expectations.
The Group is in dispute with a platform software supplier regarding historic royalty payments. This may potentially lead to a material claim, in which case we will vigorously defend it. We will update as appropriate.
The Group's balance sheet has continued to strengthen, with no long-term debt and positive collections resulting in net cash above expectation. Net cash at 31 December 2018 was £20.0m (2017: £14.1m).
The Group expects to announce its full year results on 19 March 2019.
Mark Pickett, Acting Chief Executive & Chief Financial Officer, commented:
"I am pleased with the improved profit performance for the year. Tribal has won significant new customers in a competitive market and has a good pipeline of future opportunities. The improvement in margin through effective cost management continues the programme implemented in 2016. I look forward to continued momentum in 2019 and the years beyond."
The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (EU) No.596/2014.
Ends
For further information please contact:
Tribal Group plc | Tel: 0117 313 6371 |
Richard Last, Executive Chairman | |
Mark Pickett, Acting Chief Executive & Chief Financial Officer | |
Investec Bank plc | Tel: 020 7597 5970 |
Sara Hale | |
Andrew Pinder | |
William Godfrey | |
N+1 Singer Capital Markets Limited | Tel: 0207 496 3000 |
Shaun Dobson | |
Tulchan Communications LLP | Tel: 0207 353 4200 |
James Macey White | |
David Ison | |
About Tribal Group plc
Tribal Group plc is a pioneering world-leader of education software and services. Its portfolio includes Student Information Systems; a broad range of education services covering quality assurance, peer review, benchmarking and improvement; and student surveys that provide the leading global benchmarks for student experience. Working with Higher Education, Further and Tertiary Education, schools, Government and State bodies, training providers and employers, in over 55 countries; Tribal Group's mission is to empower the world of education with products and services that underpin student success.