Tribal Group expects 2016 performance to be 'materially ahead'

Tribal Group announced on Wednesday that, following a good second half, the board anticipates that group revenues will be in line with its expectations for the year to 31 December 2016, and the performance of the group will be materially ahead.

The AIM-trade company said the outperformance was driven by QAS, I-Graduate and more effective cost control as a result of the measures implemented by the board and executive management following its review of the group's strategy and operations.

Those measures reportedly included a new, more efficient group operating model and organisational structure, a new product strategy, as well as a refreshed management team.

Annualised cost savings of £8.5m had been delivered by the year-end and further efficiency savings are expected in 2017.

During the year, sales in its Higher Education division reportedly regained the momentum lost in 2015, with an “excellent” tender success rate.

It said that momentum continued into 2017 with Tribal already securing preferred bidder status with two new Higher Education clients, including an additional Russell Group University.

Tribal also enjoyed a strong end to the year in Further Education, and QAS returned a good performance, including the successful retendering of the National Centre for Excellence in the Teaching of Mathematics contract held since November 2005.

The group's balance sheet remained strong following the fundraising and sale of the Synergy business early in the year.

It ended the year with £8.8m of cash, up from the £5.7m at the end of the half year.

Tribal said it expects to announce its full year results on 30 March.

“I am pleased with the progress Tribal is making,” said chief executive Ian Bowles.

“Our team has responded well to the strategic and operational changes we have introduced during the year and our new product strategy has been very well received by our customers.

“These initiatives and our strengthened balance sheet position the group increasingly well to take advantage of its international market, and I am confident of continued progress in 2017.”