Last checked at 28 Jun 2022 07:00
28 June 2022
Tribal Group plc
("Tribal" or the "Company")
Contract Wins, Trading Update and Notice of Results
Continued sales momentum
Tribal (AIM: TRB), a leading provider of software and services to the international education market, is pleased to announce a series of cloud contract wins, demonstrating further momentum against its cloud strategy and providing confidence in achieving the Group's growth aspirations. The Group also provides a trading update for the year ending 31 December 2022 and notice of its forthcoming interim results.
Contract Wins
Tribal is pleased to report that it has signed three further Cloud contracts for existing customers, University of Sunderland, Birmingham City University and University for the Creative Arts, to migrate their current Tribal Student Management Systems SITS:Vision to the Tribal:Cloud, providing an improved student experience and delivering operational efficiencies for the universities. The contracts range from three to five years, with a combined total contract value of £5m, generating incremental annual recurring revenues of £0.9m as well as providing an adoption pathway to Tribal Edge, the Company's cloud native offerings. In addition, Tribal has signed a new five year SITS:Vision contract with the British University of Vietnam with a total contract value of £1.7m and £0.2m incremental annual recurring revenues.
Trading Update
Sales momentum has continued to be positive, and the Group now expects revenue for the year ending 31 December 2022 to be marginally ahead of current Board expectations and EBITDA to be broadly in line. H1 EBITDA will be lower than the prior year due primarily to increased costs associated with a major customer implementation, following the extension of project timelines as a result of earlier Covid-19 related travel restrictions. However, EBITDA performance is expected to recover through the course of the second half, reflecting the Group's continued focus on improved operational performance. The Group expects to show further margin progression over the medium term as it executes on its growth and operational efficiency strategy.
The Group expects to report a net debt of approximately £4.5m as at 30 June 2022, reflecting the increased costs incurred in the period and normal working capital phasing of the business. This is expected to return to a net cash position by the end of the year.
Tribal has a growing pipeline of contract opportunities across both new and existing customers in multiple geographies and continues to benefit from the education sector's ongoing move to the cloud and desire to deliver improved student engagement.
Notice of Results
Tribal will announce its results for the six months ended 30 June 2022, on Tuesday 16 August 2022. The management team will host a webinar for analysts on the day of Results at 9am. Analysts who wish to register can contact tribal@almapr.co.uk.
Mark Pickett, Tribal's CEO, commented: "We continue to successfully execute against our growth strategy, transitioning our existing customers to the cloud while securing new customers in our key geographies. While we have experienced a temporary reduction in EBITDA performance in the period, due to a short-term impact from a major customer implementation, overall the picture for Tribal remains positive, with an expanding customer base, advanced service offering and continued contract and ARR momentum."
Notes
In so far as the Board is aware, prior to this announcement, consensus market expectations for FY22 were for Revenue of £82.8m and adjusted EBITDA of £16.4m.
Enquiries:
Tribal Group plc | Tel: +44 (0) 117 311 5293 |
Mark Pickett, Chief Executive Officer Diane McIntyre, Chief Financial Officer | |
Investec Bank plc (NOMAD & Joint Broker) | Tel: +44 (0) 20 7597 5970 |
Sara Hale, Virginia Bull, Will Godfrey | |
Singer Capital Markets Limited (Joint Broker) | Tel: +44 (0) 20 7496 3000 |
Shaun Dobson, Tom Salvesen, Alex Bond | |
Alma PR | Tel: +44 (0)203 405 0205 |
Caroline Forde, Hannah Campbell |
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.