REG - Tribal Group PLC - Update on Trading and Contract Progress <Origin Href="QuoteRef">TRBG.L</Origin>

TribalAnnouncement

09/03/2016 07:01

RNS Number : 4750R
Tribal Group PLC
09 March 2016
For Immediate Release 9th March 2016
Tribal Group plc
("Tribal" or "the Group")
Update on Trading and Contract Progress
Tribal Group plc, a leading provider of software and services to the education management market, today issues an update for the year ended 31 December 2015.
Timing of preliminary results announcement
The Group's preliminary results for the year ended 31 December 2015 will be announced in the week beginning 14 March 2016.
Contract progress
In a statement on 14 December 2015, Tribal highlighted that changes in the scope of its contract to provide a cloud based student management system to support college campuses in Australia could defer the timing of revenue recognition on this project. As identified, as a result of the evolving scope of this project, the Board in consultation with its advisers has determined that it is appropriate to defer revenues and profit of c2m previously expected to be recognised in 2015 into future years. Discussions with our customer are progressing, and are expected to lead to an updated contractual position in due course.
Impairment of development costs and goodwill
As a result of the matters affecting the business, the future benefits of certain historic product development investments have been reviewed. Consequently, a portion of these investments in product development with a value of 8.0m have been written down. In addition, the Group will also recognise goodwill impairment charges of 38.8m in its accounts for the year ended 31 December 2015.
Rights Issue and disposal of Synergy
The Board confirms that following the announcement on 1st March of the proposed disposal of the non-core Synergy business for 20.25m, the proposed Rights Issue will raise gross proceeds of up to 21m. Together, the proceeds of the disposal and Rights Issue will be applied in reducing the Group's net debt and to fund working capital.
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TribalGroupplc 01173115293
RichardLast,Chairman
Ian Bowles, Chief Executive
Investec  0207 597 4000
Rowena Murray/ Sara Hale 
N+1 Singer Capital Markets0207 496 3000 
Shaun Dobson
WeberShandwickFinancial 02070670700
NickOborne / Tom Jenkins
Editors'note:
Tribalisaleadingproviderofsoftwareandservicestotheeducationmanagement market.Webuild world-leadingstudentmanagementsoftware,andprovideperformanceimprovementandqualityassurancesolutionsacrossuniversities, collegesandschools,intheUKandinternationally.
MoreinformationaboutTribalisavailableonlineatwww.tribalgroup.com

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