Tribal Group reports “steady” performance despite sales challenges

Sheffield-headquartered education software provider, Tribal Group, has reported a “steady overall financial performance” in its half-year results.

For the six months ending 30 June 2024, the listed company achieved revenues of £44.9m, up from £43.4m in the same period in 2023.

Adjusted EBITDA stood at £7.4m, down from £8.1m the previous year. Tribal attributed the dip to a temporary pause in new sales discussions during the group’s offer period, as well as universities’ cautious approach amidst concerns over a potential decline in international student numbers. However, the company noted an improvement in its sales pipeline during the second half of the year.

The results made no mention of a settlement paid by Tribal to resolve issues linked to a terminated contract with Nanyang Technological University (NTU).

Mark Pickett, chief executive at Tribal Group, said: “We delivered a steady overall financial performance in the first half of the year, while achieving our principal aims of resolving the NTU contract and refocusing the business following the end of the offer period.

“We have introduced initiatives to accelerate the transformation of Tribal into an EdTech SaaS business, with a view to growing ARR, safeguarding our operating profit margins, increasing cash flow generation and enabling the ongoing reduction in our debt.

“Our growing suite of sophisticated cloud-based solutions, market leading position in multiple geographies and foundation of recurring revenues provide us with a strong position as we seek to empower the world of education with products and services that underpin student success.”