Tribal Group PLC Business update (9463N)
24 January 2019 - 6:00PM
UK Regulatory
TIDMTRB
RNS Number : 9463N
Tribal Group PLC
24 January 2019
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 GBP1m 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 GBP20.0m (2017:
GBP14.1m).
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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