Tribal Group PLC – Half-year Report

Tribal Group PLC – Half-year Report

2019

2018

Change

Change %

Revenue

£40.4m

£42.0m

£(1.6)m

(4)%

Adjusted operating profit 1,2

£6.3m

£6.3m

Adjusted EBITDA

£8.3m

£7.9m

£0.4m

5%

Statutory profit after tax

£3.6m

£2.9m

£0.7m

24%

Operating cash flow

£(2.7)m

£0.5m

£(3.2)m

(640)%

Net cash

£6.0m

£9.2m

£(3.2)m

(35)%

Earnings per Share (diluted)

1.7p

1.4p

0.3p

21%

 

Financial Highlights

·    Full year earnings expected to be in line with the Board’s expectations

·    Adjusted operating profit performance in line with 2018 H1

·    Annual recurring revenue increased 5% to £19.9m representing 49% of total revenue (2018 H1: £18.9m, 45% of total revenue)

·    Adjusted operating margin up 50bps to 15.5% (2018 H1: 15.0%)

·    Net cash of £6m following the £6m acquisition of Crimson Consultants

·    Committed income increased to £123.5m (2018 FY: £121.6m) – 89% of full year revenue expectation already recognised or committed

·    Adjusted earnings per share increased 14% to 2.5p (2018 H1: 2.2p)

 

Operational Highlights

·    Continued progress against long-term strategy of developing and delivering our next generation student information services platform, Tribal Edge

·    Good Student Information Systems performance in EMEA

·    Signed new 3-year £9m Education Services contract with NCETM in the UK

·    Completed acquisition of Crimson Consultants for £6m with £4m contingent consideration – integration progressing well

·    Continued investment into new and existing product development

·    Investment in Tribal Edge at full headcount with first module expected January 2020

·    Mark Pickett appointed Chief Executive Officer and Paul Simpson appointed Acting Chief Financial Officer

·    Appointment of Mike Cope, former Chief Information Officer of University College London, as Chief Technology Officer

Mark Pickett, CEO of Tribal Group, commented:

“Tribal continued to make good progress against its strategic objectives in the first six months of the year. First half performance overall was encouraging – recurring revenue and operating margin were both up. We completed the acquisition of Crimson Consultants, boosting our next generation cloud solution Tribal Edge’s functionality and accelerating its speed to market as well as bringing new customers and relationships into the Group. Our outlook for the full year remains unchanged subject to successfully winning the Middle East inspections work in H2, we continue to work on a number of new revenue opportunities, and we remain very excited about the longer-term growth opportunities available to us through the transition to Tribal Edge.”

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