Tribal Announces Positive Year End Trading Update
Tribal Group PLC
(“Tribal”) or “(the Group”)
Year end trading update
Tribal Group PLC is pleased to announce that, following a good second half, the Board anticipates that
Group revenues will be in line with its expectations for the year to 31 December 2016 and the
performance of the Group will be materially ahead.
The outperformance has been driven by QAS, I-Graduate and more effective cost control as a result of the measures implemented by the Board and executive management following its review of the Group’s strategy and operations. These measures included a new more efficient Group operating model and organisational structure, a new product strategy, as well as a refreshed management team. Annualised cost savings of £8.5m have been delivered by the year end and further efficiency savings are expected in 2017.
During the year sales in Higher Education regained the momentum lost in 2015, with an excellent tender success rate; this momentum has continued into 2017 with Tribal already securing preferred bidder status with two new Higher Education clients, including an additional Russell Group University. Tribal enjoyed a strong end to the year in Further Education and QAS returned a good performance, including the successful retendering of the National Centre for Excellence in the Teaching of Mathematics contract held since November 2005.
The Group’s balance sheet remains strong following the fund raising and sale of the Synergy business
early in the year. The Group ended the year with £8.8m of cash, up from the £5.7 at the end of the half year.
The Group expects to announce its full year results on 30th March 2017.
Ian Bowles, Chief Executive, commented:
I am pleased with the progress Tribal is making. Our team has responded well to the strategic and operational changes we have introduced during the year and our new product strategy has been very well received by our customers. These initiatives and our strengthened balance sheet position the Group increasingly well to take advantage of its international market, and I am confident of continued progress in 2017.
This announcement contains inside information.
For further information please contact:
Tribal Group plc Tel: 0117 311 5293
Ian Bowles, Chief Executive
Mark Pickett, Chief Financial Officer
Weber Shandwick Financial Tel: 020 7067 0700
Investec Bank plc Tel: 020 7597 4000
N+1 Singer Capital Markets Limited Tel: 0207 496 3000