20th Mar 2023 10:45
(Alliance News) - Tribal Group PLC on Monday said Singapore's Nanyang Technological University has decided to terminate its contract with the company and has also reserved rights to claim damages.
Shares were down 15% at 42.44 pence each on Monday morning in London.
The Bristol-based educational software and services provider said that it rejected NTU's right to terminate the contract and is considering its options regarding the next appropriate steps.
Consequently, the company revised the publication date of its annual results to March 24 to allow it time to consider the impact of the contract termination, particularly the accounting treatment of a GBP4.5 million onerous contract provision contained within previous expectations.
Tribal has an eight-year contract with NTU for the delivery of Tribal's cloud-based SITS:Vision Student Management System and its Tribal Edge solutions.
The contract was originally announced back in April 2021. In February, the company said significant delays in its Singapore contract hurt its overall trading in 2022.
Tribal explained then that the delays came as a result of "changing scope and complexity", adding that discussions with the Singapore customer had not progressed satisfactorily.
By Xindi Wei, Alliance News reporter
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