Don't worry too much about the hefty reported half-year loss at Tribal (TRB), which provides schools and universities with student management systems, inspections and surveys. That reflects a raft of exceptionals which finance director Steve Breach says will be history a year from now. But, even after adjusting for these, half-year pre-tax profit was merely flat at £4.9m
The business is going through a period of transition as its refocuses its solutions business towards more technology-orientated products. Moreover, Ofsted's decision earlier this year to bring school inspections in-house from September 2015 has certainly accelerated that shift in Tribal's business model. Management, however, appears unfazed and still expects to meet analysts' current year expectations.
That confidence significantly reflects the rate of international expansion. In fact, international sales now generate 32 per cent of group revenue - up from 24 per cent this time last year - and the systems business derives nearly half of its revenue from outside of the UK. The group recently broke into the South African market, too, after winning a £6.3m systems contract with the largest university there, the University of South Africa.
Broker Canaccord Genuity expects full-year pre-tax profit of £15.8m, giving EPS of 13.2p (from £14.6m and 12.5p in 2013).
| TRIBAL GROUP (TRB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 172p | MARKET VALUE: | £163m | |
| TOUCH: | 172-174.75p | 12-MONTH HIGH: | 208p | LOW: 153p |
| DIVIDEND YIELD: | 1.0% | PE RATIO: | na | |
| NET ASSET VALUE: | 59p* | NET DEBT: | 24% | |
| Half-year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 62.1 | 4.3 | 4.4 | 0.5 |
| 2014 | 63.4 | -8.4 | -9.0 | 0.6 |
| % change | +2 | - | - | +20 |
Ex-div: 17 Sep Payment: 17 Oct *Includes intangible assets of £104m, or 110p a share | ||||
