Tribal Group PLC – Final Results

Tribal (AIM: TRB), a leading provider of software and services to the international education management market, today announces its preliminary results for the year ended 31 December 2018. 

Financial highlights

• Adjusted operating profit for the year up 27% to £10.8m* (2017: £8.5m*) on revenue of £80.1m (2017: £84.9m)
• Statutory operating profit up 24% to £4.6m (2017: £3.7m); statutory earnings per share (diluted) 2.0p (2017: 1.3p)
• Annual recurring revenue increased by 5% to £38.5m (2017: £36.5m**) representing 45% of revenue
• Adjusted Operating Margin improvement of 4.4pp** to 13.5%, pre-IFRS 15 margin 15%
• Strong operational cash inflow during the year of £14.2m (2017: £11.1m); year end net cash of £20.0m (2017: £14.1m)
• Progressive annual dividend payment with the Board recommending a 10% increase to 1.1p per share (2017: 1.0p)

* Adjusted operating profit is in respect of continuing operations and is stated excluding “Other Items” charges of £6.2m (2017: £4.8m).  Other Items include Share-based Payments, Deferred Contingent Consideration, Amortisation of IFRS3 Intangibles, Defined Benefit Pension Scheme gains, and Restructuring and associated costs

** Adjusted for Ofsted contract, IFRS15 and constant currency 

Operational highlights

• Four new name Universities won in the UK Higher Education sector and a number of larger Further Education Colleges
• QAS won significant new contracts as well as renewals and extensions to existing contracts across the UK, USA and Middle East
• In Australia and New Zealand, Higher Education sector continues to perform well supporting existing customers; Schools and FE/VET sector has been more challenging and a restructuring plan is in place to improve future performance
• Continued investment in next generation, cloud-based student information system “Tribal Edge”, and ongoing investment in current Student Management Systems products
• Dispute with software platform provider on royalty payments; unsubstantiated pre-claim of £15m-£30m which we will strongly defend
• Mark Pickett named Chief Executive Officer and Paul Simpson named Acting Chief Financial Officer on 18^th March 2019 

Mark Pickett, Chief Executive, commented:

“I am pleased with the improved profit performance for the year and the addition of significant new customers in Higher Education and Further Education following competitive tenders. Margin has improved and we continue to challenge costs across the business.  The Group continues to deliver against its strategic goals of improving profitability, supporting customers in their move to the Cloud and delivering the next – generation information system to new and existing customers.  We have started 2019 well with significant wins in the Further Education and Work-based learning sectors and look forward to continued momentum across the year and into the future.”