REG - Tribal Group PLC - Business Update

TribalAnnouncement

16/11/2021 07:05

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RNS Number : 4522S  Tribal Group PLC  16 November 2021

16 November 2021

Tribal Group plc

("Tribal" or "the Group")

Business Update

Continued progress with Cloud strategy, including Cloud Contract Win with UCL,
the acquisition of a Timetabling platform and a new European partner

Change of accounting treatment of capitalised costs for an internal programme

Tribal (AIM: TRB), a leading provider of software and services to the
international education market, is pleased to announce: a cloud contract win;
an acquisition of a cloud-based timetabling platform; expanding of the
Company's product portfolio; and a new co-selling agreement to support
Tribal's sales efforts in Continental Europe.

University College London signs £3m Cloud contract

Long-standing SITS:Vision Student Information System customer, University
College London (UCL), one of the largest and most prestigious universities in
the UK, has agreed a multi-year contract to transition SITS to the
Tribal:Cloud, a fully-managed SaaS service by Tribal in the public cloud. The
5-year contract has a total value of £3 million, incorporating approximately
£500k of incremental Annual Recurring Revenue, building on the £49.6m of
total Tribal ARR announced at the half year.

 

Acquisition of Timetabling platform

 

In line with the Company's stated growth strategy, which seeks to combine
organic growth and product development with M&A, the Company is delighted
to announce the acquisition of Eveoh's "My Timetable", a leading platform for
timetable publication and integration generating £0.3m ARR, for a maximum
consideration in the region of £0.7m over two years. The platform allows
institutions to publish personalised student and staff timetables, via the web
or their mobile device and is currently in use at more than forty institutions
in Europe and the UK.

The platform will be integrated with the recently acquired Semestry
timetabling and scheduling solutions and will be applicable across Tribal's
extensive customer base, as universities seek to increase engagement with
their students and offer more personalised experiences.

 

Professional services partnership

 

The Group has entered into a partnership agreement with Dutch-based OMIX
Group(1) to support the sales of Semestry modules into Europe, providing
functional consulting, expertise and training to our European Semestry
customers.  OMIX is a leading provider of consulting to education
institutions in the Netherlands and other European countries. The OMIX
Scheduling Academy has licensed and will deploy the Semestry's TermTime,
ExamTime and MyTimetable solutions to support the professional development of
Schedulers in the Academy.

 

 1  Full legal name: Omix Onderwijsplanners B.V. (55533434)

 

 

Accounting treatment of capitalised costs for an internal programme

 

Following a review of the clarification from the IFRS Interpretations
Committee regarding configuration and customisation costs in Cloud Computing
Arrangements (Software as a Service, "SaaS") under IAS 38, Tribal has
identified a change in treatment of capitalised costs.

 

Our internal transformation programme, known as Veritas, predominately uses
SaaS arrangements and third party implementation partners to improve our
systems and processes. Costs had been previously capitalised during 2021,
£0.8m as at end June 2021 and will now be expensed through the income
statement with a full year impact of c£1.4m in 2021 and c£1.0m in 2022. As
the costs are material and 'one-off' in nature, all Veritas Programme costs
expensed through the Income Statement in both 2021 and 2022 will be disclosed
as 'Other Items' in the financial statements and therefore not included within
the Group's adjusted profit figures.

 

Veritas will improve our profitability and ability to scale for future planned
growth, by driving simplifications, standardisation, and optimisation across
our value chain.

 

The Board is confident in the Group's delivery of adjusted operating profits
for the year, in line with the Board's expectations, and in the long-term
growth opportunity for Tribal.

 

Mark Pickett, Tribal's CEO, commented: "We continue to make excellent
progress against our cloud strategy, building out our product roadmap through
the acquisition of a timetabling cloud module, an important area of student
engagement, transitioning one of our long-standing customers, UCL, onto our
managed cloud service and Edge platform, increasing our levels of recurring
revenue, and expanding our sales and marketing capabilities in the European
market through a partnership with OMIX. Through the expansion of our Edge
platform, we are positioning ourselves at the forefront of the evolution in
our industry and continue to be excited about our growing opportunity and
capabilities."

For further information:

 Tribal Group plc                                  Tel: +44 (0) 117 311 5293
 Mark Pickett, Chief Executive Officer
 Diane McIntyre, Chief Financial Officer

 Investec Bank plc (NOMAD & Joint Broker)        Tel: +44 (0) 20 7597 5970
 Sara Hale, Virginia Bull, Will Godfrey

 Singer Capital Markets Limited (Joint Broker)   Tel: +44 (0) 20 7496 3000
 Shaun Dobson, Tom Salvesen, Alex Bond

 Alma PR                                         Tel: +44 (0) 203 405 0205
 Caroline Forde, Robyn Fisher, Molly Gretton

 

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.

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