19th Oct 2015 06:40
LONDON (Alliance News) - Education software and services company Tribal Group PLC issued a profit warning on Monday morning as the group said its focus on winning larger contracts has been to the detriment of its medium and smaller contract base.
Tribal said that while it has been successful in winning larger contracts, this has hit its pipeline of medium and smaller deals to complement the larger wins. In addition, it has been hit by contract delays which has resulted in deferred revenue and higher costs.
Due to this, Tribal now expects its 2015 revenue to fall year-on-year and said its operating profit will be significantly lower than its previous expectations.
Tribal also said its business review, aimed at increasing sales and efficiency across the business, has been hit by the trading conditions, though it is continuing with the changes. It added it is making progress in finding a new chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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