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Tribal in a tailspin

A profit warning from the education software group sent its shares spiralling.
October 23, 2015

Shares in Tribal (TRB) plunged 37 per cent after the student management systems provider warned that full-year sales would likely fall and operating profit would be well below previous expectations. Management blamed mounting competition, customers delaying projects and its focus on larger software contracts reducing the amount of work won from small- and medium-sized clients.

IC TIP: Hold at 77p

Tribal's directors have responded by investing in sales managers, reviewing how and to whom it sells and reducing costs. Broker N+1 Singer slashed its forecasts and now expects pre-tax profit of £6.1m, giving EPS of 5p, down from £13.4m and 11.3p in 2014.