20th Aug 2019 09:56
(Alliance News) - Education software firm Tribal Group PLC on Tuesday reported a first half of "good progress", despite a drop in revenue.
Tribal reported revenue of GBP40.4 million for the six months to June 30, though pretax profit did increase by 2.4% to GBP4.3 million.
The company, which does not pay a dividend, said performance was "encouraging" during the year, with annual recurring revenue rising 5% to GBP19.9 million. Recurring revenue now makes up 49% of total revenue, up from 45% a year before.
Chief Executive Mark Pickett said: "Tribal continued to make good progress against its strategic objectives in the first six months of the year. First half performance overall was encouraging - recurring revenue and operating margin were both up.
"We completed the acquisition of Crimson Consultants, boosting our next generation cloud solution Tribal Edge's functionality and accelerating its speed to market as well as bringing new customers and relationships into the group."
Education-focused customer relationship management firm Crimson was bought in May for GBP6 million, as well as a possible further GBP4 million based on future recurring revenue performance.
"Our outlook for the full year remains unchanged subject to successfully winning the Middle East inspections work in the second half, we continue to work on a number of new revenue opportunities, and we remain very excited about the longer-term growth opportunities available to us through the transition to Tribal Edge," he added.
Tribal shares were 8.3% lower on Tuesday morning at 66.00 pence each.
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