Tribal Group PLC Business Update (8543Q)
24 Giugno 2020 - 8:00AM
UK Regulatory
TIDMTRB
RNS Number : 8543Q
Tribal Group PLC
24 June 2020
24(th) June 2020
Tribal Group plc
("Tribal" or "the Group")
Business Update
Tribal (AIM: TRB), a leading provider of software and services
to the international education market, today provides an update
with regards to its trading for the current financial year ending
31 December 2020.
The Group expects results in the current year to be in line with
market expectations, with revenue expected to be in the region of
GBP70m, and Adjusted EBITDA(1) of approximately GBP13m. Expenditure
and cash have been tightly managed with collections stronger than
forecast; net cash at 22 June 2020 was GBP7.2m. Net cash at the end
of the first half is expected to be slightly lower than
HY2019having fully paid all tax deferrals that were permitted by
the UK and Australian governments in relation to COVID-19.
The Group has responded well to the challenges brought by
COVID-19, benefitting from the strong annual recurring revenues
that have been a key area of growth in recent years. Annual
renewals of Support & Maintenance and Cloud Services contracts,
which accounted for c50% of FY2019 revenue, have continued with no
noticeable attrition. The Group continues to deliver existing
software implementation projects globally with minimal
interruption, with Tribal and its customers adapting their working
practices to a remote delivery model quickly and successfully.
The existing sales opportunities have continued towards closure,
and we are pleased to announce that the Group recently won a new
five year contract for a full SITS implementation at Chartered
Accountants Australia New Zealand (CAANZ) with a TCV of AUD3m. The
pipeline of sales opportunities remains strong, with increasing
interest from universities and colleges in moving to the Public
Cloud, adopting Dynamics CRM and Engage (student engagement) mobile
solution. Sales cycles have however lengthened, particularly in
Higher Education, as customers consider their future budgets in
light of the current uncertainty around student numbers for the
2020/21 academic year.
Education Services (ES) has continued to deliver the training
and improvement contracts in the UK and US, with a rapid move to
online and remote delivery. As previously announced, the Middle
East schools inspections which account for approximately one third
of ES revenue have paused for the current academic year due to
school closures; we expect the work to resume for future academic
years when the schools re-open. Surveys and benchmarking
assessments have continued but at lower levels and our
International Student Barometer in the Southern hemisphere has been
delayed to 2021. ES however remains profitable albeit at a lower
level than 2019.
The Group expects to announce its half year results on 13(th)
August 2020.
Mark Pickett, Chief Executive Officer of Tribal, commented:
"I'm pleased with the resilient performance Tribal has shown
against the challenging backdrop of COVID-19. We have managed our
cost base tightly to preserve cash and have quickly adapted our
working methods to deliver our services remotely to ensure and
uninterrupted service for our customers. We will look to build this
flexibility into our ongoing service offerings for the benefit of
both Tribal and its customers.
I would like to thank our staff for their continued commitment
and support during this period."
1 Adjusted EBITDA is in respect of continuing operations
excluding restructuring costs and share based payments
END
Tribal Group plc Tel: 0117 311 5293
Mark Pickett, Chief Executive
Officer
Paul Simpson, Acting Chief Financial
Officer
Investec Bank plc Tel: 020 7597 5970
Sara Hale
Virginia Bull
Will Godfrey
N+1 Singer Capital Markets Limited Tel: 020 7496 3000
Shaun Dobson
Tom Salvesen
Alex Bond
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 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.
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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