Interim Management Statement

RNS Number : 8767G

Tribal Group PLC

19 May 2011

 



19 May 2011

Tribal Group plc

Interim Management Statement

Tribal Group plc (Tribal), a leading provider of technology products and services to the education, learning and training markets in the UK and internationally, provides the following update on trading, covering the period from 1 January 2011 to date.

During the period, we completed the disposal of our Health and Government businesses to The Capita Group Plc (Capita).   We also completed the disposal of the last of our Support Services businesses, Tribal Resourcing, to TMP (UK) Limited.   As a result of these transactions, the business is now focused on the education, learning and training markets.

Trading in our continuing business in the early months of the year has been in line with our expectations, with revenue for the four months to 30 April 2011 five per cent higher than the comparable period last year.  We have seen good growth in our service delivery revenues, underpinned by the successful delivery of our two inspection contracts on behalf of Ofsted, the second of which commenced in the autumn of 2010.  Whilst we are seeing slow demand for our schools advisory activities, our technology revenues continue to be resilient.

During the period, we have secured a number of new contracts and extensions and the development of our international pipeline continues to be encouraging.

As previously announced, we have secured new technology clients in New Zealand (University of Otago and Wairiki Institute) and in China (Xi'an Jiaodang - Liverpool University in Shanghai).  Earlier in the year we won a £4.6m EU-funded contract to support the implementation of Special Education Needs provision in Turkey.  In the UK, we also won the NHS South West workforce development programme, a service which will now be delivered jointly with Capita following its acquisition of our Health business. 

Our committed income levels remain strong.  At the end of April 2011, total committed income stood at £181m, compared to £186m at the start of the year.  At 1 May 2011, we had delivered or secured 78% of planned revenue for the year (2010: 81%).

As announced previously, following completion of the sale of our Health and Government businesses, a programme of cost reduction is being implemented to reduce overheads.  This programme is proceeding well, and we expect to see the benefits of operating with a lower cost base in the second half of the year.

At the end of April, net debt was £20.5m, including the benefit of the initial net proceeds of the recently completed disposals.  Following completion of the sale of the Health and Government businesses, we have agreed amendments to our banking arrangements, and Tribal is securely financed.

We announced in December 2010 that we had been approached regarding a possible offer for Tribal.  Tribal remains in an offer period.  There is no certainty that an offer will be made.  Further announcements will be made as appropriate.

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Tribal Group plc                                                          Tel: [phone]

Keith Evans, Chief Operating Officer

Steve Breach, Group Finance Director

Weber Shandwick Financial                                       Tel: [phone]

Nick Oborne

Stephanie Badjonat

Robert Cook

Editors' note:

Tribal Group plc (Tribal) is a leading provider of technology products and services to the education, learning and training markets in the UK and internationally.

Our people are sector experts and we work in partnership with a wide range of organizations, including schools, colleges, universities, local authorities and government departments, as well as employers in the private sector. Tribal has over 1,300 staff.  Tribal's shares are quoted on the London Stock Exchange (TRB). Links: Tribal Group plc website: www.tribalgroup.com  

This Statement has been prepared for and is addressed only to our shareholders as a whole and should not be relied on by any other party or for any other purpose. Tribal, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this Statement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.  This Statement may contain forward-looking statements and the financial information is unaudited. Any forward-looking statement has been made by the directors in good faith based on the information available to them up to the time of approval of this Statement and should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward-looking information. To the extent that this Statement contains any statement dealing with any time after the date of its preparation, such statement is merely predictive and speculative as it relates to events and circumstances which are yet to occur and therefore the facts stated and views expressed may change. Tribal undertakes no obligation to update these forward-looking statements.  

 

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