Last checked at 28 Jan 2009 07:00
Tribal: Trading Update Statement and Investor Presentation
Tribal Group plc ("Tribal" or the "Group"), the provider of consultancy, support and delivery services to the public sector in the UK and internationally, is providing this trading statement in advance of the preliminary announcement of its results for the year ended 31 December 2008 on 17 March 2009.
Our business model continued to prove resilient during the final quarter and we have been pleased by the trading performance across the Group. The Board reconfirms the guidance given in its Interim Management Statement on 29 October that it is confident the Group will perform in line with its expectations for 2008.
The financial position of the Group remains strong. Operating cash conversion was in excess of 100% in 2008. Net debt at the year end was less than £20m. Tribal has committed bank facilities of £40m that run until June 2012.
We have seen good demand for our services in the past three months and maintained an encouraging level of contract wins. We have secured significant new business in all of our principal markets in the UK and our international activities have continued to develop well.
The order book and bidding pipeline remain healthy. More than 95% of Tribal's business comes from the public sector and we have seen a good flow of opportunities, particularly in our key markets of education and health. Whilst the current economic climate will lead to an increased focus on value for money, we expect to see continued demand for our performance improvement, cost reduction and change management services.
Our business is underpinned by a wide range of support and delivery contracts that gives us a good measure of revenue visibility. Tribal entered the new financial year with approximately 38% of 2009 planned revenue already committed and with total committed income of £139m. In addition, we continue to see good opportunities for growth across our markets and, at the beginning of January, our identified and qualified sales pipeline stood at £297m, against £168m at the start of 2008. The Board is therefore confident about Tribal's prospects in 2009.
Analyst and investor presentation
Tribal is today hosting a briefing event for analysts and institutional investors focused on the Group's health business at University College London Hospitals' education centre.
The health sector is an area in which we see excellent growth opportunities, both in the UK and internationally. The briefing will provide analysts and investors with the opportunity to meet the health business management team and learn more about its operations and current market opportunities. No material new information on Tribal Group will be disclosed. A copy of the presentation will be available today on the Group's website at 12 noon: www.tribalgroup.co.uk
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For further information, please contact:
Tribal Group plc Telephone: 020 7323 7100
Peter Martin, Chief Executive
Simon Lawton, Group Finance Director
Maitland Telephone: 020 7379 5151
Anthony Silverman
Editors' note:
Tribal provides a range of consultancy, support and delivery services focused on improving the delivery of public services in the UK and internationally. Our core markets are in education, health, housing and regeneration, central government and local government. Tribal employs approximately 2,300 staff and its shares are quoted on the London Stock Exchange (TRB).
Links: Tribal Group plc website: www.tribalgroup.co.uk
This Statement has been prepared for and is addressed only to our shareholders as a whole and should not be relied on by any other party or for any other purpose. Tribal, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this Statement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.
This Statement may contain forward-looking statements. Any forward-looking statement has been made by the directors in good faith based on the information available to them up to the time of approval of this Statement and should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward-looking information. To the extent that this Statement contains any statement dealing with any time after the date of its preparation, such statement is merely predictive and speculative as it relates to events and circumstances which are yet to occur and therefore the facts stated and views expressed may change. Tribal undertakes no obligation to update these forward-looking statements.