Last checked at 9 Mar 2016 07:00
For Immediate Release 9th March 2016
Tribal Group plc
("Tribal" or "the Group")
Update on Trading and Contract Progress
Tribal Group plc, a leading provider of software and services to the education management market, today issues an update for the year ended 31 December 2015.
Timing of preliminary results announcement
The Group's preliminary results for the year ended 31 December 2015 will be announced in the week beginning 14 March 2016.
Contract progress
In a statement on 14 December 2015, Tribal highlighted that changes in the scope of its contract to provide a cloud based student management system to support college campuses in Australia could defer the timing of revenue recognition on this project. As identified, as a result of the evolving scope of this project, the Board in consultation with its advisers has determined that it is appropriate to defer revenues and profit of c£2m previously expected to be recognised in 2015 into future years. Discussions with our customer are progressing, and are expected to lead to an updated contractual position in due course.
Impairment of development costs and goodwill
As a result of the matters affecting the business, the future benefits of certain historic product development investments have been reviewed. Consequently, a portion of these investments in product development with a value of £8.0m have been written down. In addition, the Group will also recognise goodwill impairment charges of £38.8m in its accounts for the year ended 31 December 2015.
Rights Issue and disposal of Synergy
The Board confirms that following the announcement on 1st March of the proposed disposal of the non-core Synergy business for £20.25m, the proposed Rights Issue will raise gross proceeds of up to £21m. Together, the proceeds of the disposal and Rights Issue will be applied in reducing the Group's net debt and to fund working capital.
ends
Tribal Group plc 0117 311 5293
Richard Last, Chairman
Ian Bowles, Chief Executive
Investec 0207 597 4000
Rowena Murray/ Sara Hale
N+1 Singer Capital Markets 0207 496 3000
Shaun Dobson
Weber Shandwick Financial 020 7067 0700
Nick Oborne / Tom Jenkins
Editors' note:
Tribal is a leading provider of software and services to the education management market. We build world-leading student management software, and provide performance improvement and quality assurance solutions across universities, colleges and schools, in the UK and internationally.
More information about Tribal is available online at www.tribalgroup.com