UK education software provider Tribal Group's H1 revenue rises on subscription, cloud growth
UK education software provider Tribal Group's H1 revenue rises on subscription, cloud growth
Overview
UK education software provider's H1 revenue rose 7.1% yr/yr to £48.9 mln
Adjusted EBITDA was flat at £8.7 mln, with margin down due to adverse forex swing
Statutory profit after tax declined to £3.9 mln, mainly due to higher amortisation charges
Outlook
Tribal expects FY26 revenue and adjusted EBITDA comfortably in line with market expectations
Market expectations for FY26: revenue £93.6m, adjusted EBITDA £17.0m, net cash £9.4m
Company sees significant Etio project tenders progressing in H2 2026 and into FY27
Result Drivers
SUBSCRIPTION AND CLOUD GROWTH - Revenue growth was driven by increased adoption of subscription and cloud services, including successful migrations to HEFS and cloud offerings
ETIO CONTRACTS AND EFFICIENCY - Etio segment revenue increased, supported by government contracts and improved operational efficiency after a business review
ADVERSE FOREX SWING - Adjusted EBITDA margin declined due to a £0.9m adverse forex swing from intercompany trading balances
HIGHER AMORTISATION CHARGES - Statutory profit after tax declined, mainly due to higher amortisation, including a one-off charge from realigning product go-live dates
Company press release: ID:nRSC1853Ta
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 48.9 mln |
|
H1 Net Income |
| GBP 3.9 mln |
|
H1 Adjusted EBITDA |
| GBP 8.7 mln |
|
H1 Basic EPS |
| GBP 0.018 |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the professional & business education peer group is "buy."
Wall Street's median 12-month price target for Tribal Group PLC is GBp93.50, about 48.4% above its September 2 closing price of GBp63.00
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago
Reuters Recommended Reads
Sept 1 - UK's Pennant International H1 revenue rises on training systems contracts
Sept 1 - UK economic outlook improves but firms wary of investment, BCC says
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)