Tribal Group PLC on Tuesday was optimistic as it delivered strong first half profit growth despite flat sales.
The Bristol, England-based educational software and services provider said it is ‘increasingly positive’ about delivering full year results ahead of current market expectations after a positive trading performance.
In response, shares in the firm shot up 21% to 57.00 pence each on Tuesday morning in London.
Pretax profit rose to £5.6 million in the six months to June 30 from £1.0 million the year prior, although revenue only grew 0.9% to £45.3 million from £44.9 million.
The bottom line benefited from lower administrative and finance costs and reduced exceptional charges compared with a year ago.
Student Information Systems revenue grew 4.2% to £36.1 million from £35.2 million a year ago, while Etio revenue decreased 4.5% to £9.2 million from £9.7 million.
Since June 30, Tribal said a further £4.0 million of new business has been signed.
The firm said as a result of the ‘positive’ trading performance, it is ‘increasingly positive’ about delivering full-year results ahead of current market expectations.
Tribal said consensus expectations were for revenue of £89.9 million, adjusted earnings before interest, tax, depreciation and amortisation of £14.6 million and net debt of £4.9 million.
In 2024, Tribal reported revenue of £90.0 million, adjusted Ebitda of £16.7 million and net debt of £3.2 million.
Chief Executive Mark Pickett said Tribal has entered the second half with a ‘robust foundation’.
He said while the higher education sector continues to face a complex market backdrop as mounting cost pressure on universities is causing a slowdown in market activity, the opportunity in the vocational education market remains robust.
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