Trading Statement

RNS Number : 6069C

Tribal Group PLC

19 October 2015

 

Tribal Group plc

Trading statement

Tribal Group plc ("Tribal"), a leading provider of student management systems and services for education management, issues a trading statement to update its outlook for the second half of the year ending 31 December 2015.

In recent years Tribal has been successful in winning large software projects in our chosen markets.  The expectations of our larger customers continue to evolve and attract the interest of new competitors, and our success in winning large contracts remains difficult to predict.  At the same time, despite being well positioned in the market, the focus on our larger customers has resulted in Tribal being less successful in building a pipeline of medium-sized and smaller opportunities to complement these large deals. 

We have also seen the extension of certain large customer programme timelines, which has resulted in the deferral of revenue and higher project delivery costs. 

In light of these trading conditions, we now expect our revenues for the current year to be lower than the prior year, and we expect our operating profits to be significantly below our previous expectations.

The Board initiated a review of the Group's operations in the summer.  Despite implementing initiatives to drive sales and increase our operating efficiency, we have been impacted by the more difficult trading environment.  We are strengthening our sales leadership, fundamentally reviewing of our sales priorities and processes, and better aligning our cost base with our ongoing activities.  

The process to appoint a new Chief Executive is advancing well, and an update will be provided in due course. 

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Tribal Group plc	Tel: [phone]
Rob Garner, Interim Chief Executive
Steve Breach, Group Finance Director
Weber Shandwick Financial	Tel: [phone]
Nick Oborne
Tom Jenkins

Canaccord Genuity Limited	Tel: [phone]
Simon Bridges
Cameron Duncan
N+1 Singer Capital Markets Limited Shaun Dobson Alex Price	Tel: [phone]

Editors' note:

Tribal is a leading provider of software and services to the education management market. We build world-leading student management software, and provide performance improvement and quality assurance solutions across universities, colleges and schools, in the UK and internationally.

More information about Tribal is available online at www.tribalgroup.com. 

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 and the financial information is unaudited. 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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