13th Aug 2020 12:22
(Alliance News) - Tribal Group PLC on Thursday said it showed a resilient performance over the first half of 2020 thanks to its existing contracts coupled with some short-term cost cuts.
The education software and services provider saw its pretax loss widen in the first half ended June 30 to GBP4.7 million from GBP4.3 million a year prior.
Revenue for the half was down to GBP38.2 million from GBP40.4 million the year before.
Tribal saw its biggest revenue dive in the Education Services division which decreased by 17% to GBP9.2 million, from GBP11.1 million a year prior. This was mainly due to the impact of Covid-19 on contracts in the Middle East after most activities were paused.
Tribal said that its existing contracts as well as non-software contracts have operated at planned levels. This, coupled with short-term cost saving measures, protected the company over the tough period.
The company decided to cancel the final dividend of 2019 to save cash, compared to 1.1 pence per share in 2018. It does however intend to resume its dividend payment this financial year.
Chief Executive Mark Picket said: "Overall our first half performance was better-than-expected, benefiting from significant cost mitigations which will not continue at the same level in the second half; I would also note that the account management and general project work is slowing as customers assess the impact of Covid-19.
"Despite this, the outlook for the full year is expected to be slightly ahead of current market expectations for revenue and adjusted earnings before tax, interest, depreciation and amortisation, and ahead for adjusted EBITA."
Going forward, Tribal noted that sales opportunities remain positive for the moment with increased interest from universities and colleges.
Tribal shares were up 12% at 64.00 pence each on Thursday afternoon in London.
By Greg Roxburgh; [email protected]
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