9th Mar 2016 08:41
LONDON (Alliance News) - Tribal Group PLC shares dropped on Wednesday after it warned it will book a substantial amount of impairments and write-downs in the 2015 financial year, adding it will also defer around GBP2.0 million in revenue that was set to be recognised in 2015 into future years.
Tribal shares were trading down 15% to 42.45 pence per share on Wednesday morning.
The provider of software and services to the education management market said it will write-down a portion of its investments in product development to the tune of GBP8.0 million and book goodwill impairment charges of around GBP38.8 million.
Those will be booked in the financial year ended December 31, 2015.
In addition, Tribal said GBP2.0 million of revenue that was set to be recognised in 2015 will now be deferred into "future years".
That revenue relates to changes in the scope of its contract to provide a cloud based student management system to support college campuses in Australia. Tribal said it was "appropriate" to defer the revenue following the changes to that contract after speaking with its advisers.
In addition, Tribal confirmed the rights issue launched in December will raise around GBP21.0 million, lower than the original GBP35.0 million target.
In a separate statement Wednesday, Tribal said Group Finance Director Steve Breach has resigned to pursue other opportunities, but said he will stay on "for the time being". A search for his replacement is underway.
By Joshua Warner; [email protected]; @JoshAlliance
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