REG - Tribal Group PLC - Contract Wins and Trading Update

TribalAnnouncement

28/06/2022 07:00

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RNS Number : 3742Q  Tribal Group PLC  28 June 2022

28 June 2022

 

Tribal Group plc

("Tribal" or the "Company")

Contract Wins, Trading Update and Notice of Results

Continued sales momentum

Tribal (AIM: TRB), a leading provider of software and services to the
international education market, is pleased to announce a series of cloud
contract wins, demonstrating further momentum against its cloud strategy and
providing confidence in achieving the Group's growth aspirations. The Group
also provides a trading update for the year ending 31 December 2022 and notice
of its forthcoming interim results.

Contract Wins

Tribal is pleased to report that it has signed three further Cloud contracts
for existing customers, University of Sunderland, Birmingham City University
and University for the Creative Arts, to migrate their current Tribal Student
Management Systems SITS:Vision to the Tribal:Cloud, providing an improved
student experience and delivering operational efficiencies for the
universities. The contracts range from three to five years, with a combined
total contract value of £5m, generating incremental annual recurring revenues
of £0.9m as well as providing an adoption pathway to Tribal Edge, the
Company's cloud native offerings. In addition, Tribal has signed a new five
year SITS:Vision contract with the British University of Vietnam with a total
contract value of £1.7m and £0.2m incremental annual recurring revenues.

Trading Update

Sales momentum has continued to be positive, and the Group now expects revenue
for the year ending 31 December 2022 to be marginally ahead of current Board
expectations and EBITDA to be broadly in line.  H1 EBITDA will be lower than
the prior year due primarily to increased costs associated with a major
customer implementation, following the extension of project timelines as a
result of earlier Covid-19 related travel restrictions. However, EBITDA
performance is expected to recover through the course of the second half,
reflecting the Group's continued focus on improved operational performance.
The Group expects to show further margin progression over the medium term as
it executes on its growth and operational efficiency strategy.

The Group expects to report a net debt of approximately £4.5m as at 30 June
2022, reflecting the increased costs incurred in the period and normal working
capital phasing of the business. This is expected to return to a net cash
position by the end of the year.

Tribal has a growing pipeline of contract opportunities across both new and
existing customers in multiple geographies and continues to benefit from the
education sector's ongoing move to the cloud and desire to deliver improved
student engagement.

Notice of Results

Tribal will announce its results for the six months ended 30 June 2022, on
Tuesday 16 August 2022. The management team will host a webinar for analysts
on the day of Results at 9am. Analysts who wish to register can
contact tribal@almapr.co.uk (mailto:tribal@almapr.co.uk) .

Mark Pickett, Tribal's CEO, commented:  "We continue to successfully execute
against our growth strategy, transitioning our existing customers to the cloud
while securing new customers in our key geographies. While we have experienced
a temporary reduction in EBITDA performance in the period, due to a short-term
impact from a major customer implementation, overall the picture for Tribal
remains positive, with an expanding customer base, advanced service offering
and continued contract and ARR momentum."

Notes

 In so far as the Board is aware, prior to this announcement, consensus
market expectations for FY22 were for Revenue of £82.8m and adjusted EBITDA
of £16.4m.

 

Enquiries:

    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, Hannah Campbell

 

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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