Tribal Group PLC Business Update (0731B)
28 Gennaio 2020 - 08:00AM
UK Regulatory
TIDMTRB
RNS Number : 0731B
Tribal Group PLC
28 January 2020
28(th) January 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 announces the
following trading update in respect of its financial year ended 31
December 2019.
Trading
Good progress has been made in the period with Tribal's
continued focus on operational efficiencies leading to an Adjusted
EBITDA(1) performance marginally higher than the Board's
expectations. Group revenue is slightly lower than expected,
primarily due to a reduction in the number of new Student
Information System opportunities coming to market in the UK and
Australia, the increasing move to subscription sales from perpetual
licenses in Further Education and Work-Based Learning, and the
timing of revenue recognition under IFRS15.
Education Services benefited from significant new contracts in
the UK and the Middle East, however the revenues from the Middle
East contract will be largely recognised in 2020.
Annual recurring revenue (ARR) has grown again aided by the
acquisition of Crimson Consultants (now Tribal Dynamics) in May
2019 and the additional subscription sales.
The Group has a strong balance sheet with net cash at 31
December 2019 ahead of the Board's expectations at GBP16.5m (2018:
GBP20.0m) following a positive collection performance in the final
quarter. During the period Tribal invested GBP6m in the acquisition
of Crimson Consultants and a further GBP6m in the development of
the Tribal Edge platform.
Good progress has been made in the development of Tribal Edge,
our cloud enabled single platform to provide common services for
multi-tenanted SaaS applications, and our first full module is due
for release in Australia imminently.
Platform dispute
The Group has now reached a non-binding, in principle agreement
to settle the dispute with a platform provider for past royalties
and a new 10 year agreement for royalties due on future sales and
renewals. The Group expects to pay in the order of GBP9m to settle
all historic liabilities, including related legal fees, and will
fully provide for these costs in 2019.
The Group expects to announce its full year results on 18(th)
March 2020.
Mark Pickett, Chief Executive Officer of Tribal, commented:
"I'm pleased to report a good Adjusted EBITDA, ARR and cash
performance for the period, ahead of our expectations, despite some
softness in our end markets. The conclusion of the platform dispute
is very welcome.
The Tribal Edge platform has been a key focus during the year,
and I am looking forward to the launch of our first module this
month. There is clear demand for cloud-based solutions within our
key markets, and Tribal Edge provides native cloud based next
generation solutions, which positions Tribal to benefit from this
trend.
The Board remains confident in the outlook for the year
ahead."
1 Adjusted EBITDA is in respect of continuing operations
excluding restructuring costs, share based payments and provision
for the platform dispute settlement
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
Andrew Pinder
Will Godfrey
Neil Coleman
Virginia Bull
N+1 Singer Capital Markets Limited Tel: 020 7496 3000
Shaun Dobson
Tom Salvesen
Alex Bond
Tulchan Communications LLP Tel: 020 7353 4200
James Macey White
Matt Low
Sophie Duckworth
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.
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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