REG - Tribal Group PLC - NTU Contract Update and Trading Outlook

TribalAnnouncement

01/12/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221201:nRSA1724Ia&default-theme=true

RNS Number : 1724I  Tribal Group PLC  01 December 2022

1 December 2022

 

Tribal Group plc

("Tribal" or the "Company")

NTU Contract Update and Trading Outlook

Tribal (AIM: TRB), a leading provider of software and services to the
international education market, today provides an update on the Nanyang
Technology University ("NTU") contract and Group trading for the year ending
31 December 2022 ("FY22").

NTU Contract Update

Trading for FY22, excluding the NTU contract, is in line with Board
expectations. However, the issues flagged within the Group's Interim Results
regarding the changes to the scope and delays to implementation and delivery
of the NTU contract have continued, resulting in substantially increased
ongoing costs and lower recognisable revenue in FY22 than originally
anticipated. Consequently, the NTU contract is now expected to generate a loss
of c£12m over the life of the contract. Commercial discussions are ongoing
with NTU to determine the level of additional revenue due to Tribal in
relation to these scope changes and resultant delays to delivery and
implementation. These discussions are unlikely to be resolved this financial
year.

As a result, the Board now anticipates a negative impact on EBITDA for FY22 of
approximately £9m. Therefore, while a continued positive sales performance
means Group revenue for the year is expected to be in line with Board
expectations, EBITDA will be substantially below for FY22.

The NTU contract combined with extra cost and wage inflation is expected to
reduce anticipated EBITDA performance in the year ending 31 December 2023 by
c£4m.

Contract Wins

Tribal continues to sign contracts with both new and existing customers,
including a seven year SITS:Vision contract with the University of Plymouth, a
five year Cloud contract with the University of East Anglia, an existing
customer, and a four year Semestry contract with the University of Birmingham.
Together, these contracts have a total value of £8.3m, adding £1.1m in
incremental Annual Recurring Revenue.

The Board continues to expect the Company to close FY22 with a reduced net
debt position, remaining comfortably within the Company's current banking
facilities.

The Company will provide a further update on trading for FY22 in January 2023.

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

Enquiries:

 Tribal Group plc                                  Via Alma
 Richard Last, Chairman
 Mark Pickett, Chief Executive Officer

 Diane McIntyre, Chief Financial Officer

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

 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCBBLLXLFLLFBK