TIDMTRB
RNS Number : 3700I
Tribal Group PLC
12 August 2021
Tribal Group plc
("Tribal" or "the Group")
Interim Results for the six months ended 30 June 2021
(unaudited)
Tribal (AIM: TRB), a leading provider of software and services
to the international education market, is pleased to announce its
interim results for the six months ended 30 June 2021.
Results 2020 H1 2020 H1 Change Constant Change %
6 months to 30 June 2021 H1 Reported Constant Currency (4) Currency(4) Constant Currency(4)
Revenue GBP39.3m GBP38.2m GBP39.0 GBP0.3m 1%
---------- ----------- ---------------------- --------------------- ----------------------
Annual Recurring
Revenue (ARR)
at period end (1)
(versus 31 Dec 2020) GBP49.6m GBP47.5m GBP47.2m GBP2.4m 5%
---------- ----------- ---------------------- --------------------- ----------------------
Adjusted Operating
Profit (EBITDA) (2,
3) GBP9.2m GBP8.1m GBP8.6m GBP0.6m 7%
---------- ----------- ---------------------- --------------------- ----------------------
Adjusted Operating
Profit Margin
(EBITDA) (2) 23.3% 21.3% 22.0% - 130bps
---------- ----------- ---------------------- --------------------- ----------------------
Adjusted Free Cash
Flow (5) GBP4.2m GBP4.3m GBP4.3m GBP(0.1)m (2)%
---------- ----------- ---------------------- --------------------- ----------------------
Net Cash GBP4.3m GBP6.7m GBP6.7m GBP(2.4)m (36)%
---------- ----------- ---------------------- --------------------- ----------------------
Statutory Profit
after Tax GBP 4.4m GBP3.8m GBP3.8m GBP 0.6m 17%
---------- ----------- ---------------------- --------------------- ----------------------
Earnings per Share
(diluted) 2 .1p 1.9p 1.9p 0.2p 10%
---------- ----------- ---------------------- --------------------- ----------------------
Operational Highlights
-- Continued strong sales performance, adding four new SIS
customers across Tribal's range of software offerings in the first
six months of the year, including in the UK: Solent University,
Liverpool City Council Adult Education; and internationally: Te
Whare W nanga o Awanui rangi in New Zealand and Middlesex
University in Dubai
-- Additional product sales to existing Tribal customers
including University of St Andrews, Brunel University London, The
University of Warwick. We have also announced our first two sales
for Edge Admissions to Aberystwyth University and the University
for the Creative Arts
-- Acquisition of Semestry Limited in April 2021 for GBP4.5m,
expanding the Edge family of cloud solutions
-- Continued investment in our offering, people and operations,
to capitalise on the growing activity within the education market,
including GBP4.5m investment in Edge product development
Financial Highlights (constant currency)
-- Annual Recurring Revenue (ARR) of GBP49.6m, an increase of 5%
since year end, of which 3% is organic growth and 2% due to
acquisitions
-- Group Revenue up 1% to GBP39.3m, SIS revenue increased 4%,
while Education Services decreased 11% due to the impact of
Covid-19
-- Adjusted Operating Profit (EBITDA) performance increased 7% to GBP9.2m
-- Adjusted Operating Margin (EBITDA) improved to 23%, up 130bps from prior year
-- Statutory profit after tax increased 17% to GBP4.4m
-- Net Cash of GBP4.3m, lower than prior periods due to GBP4.5m
Semestry acquisition and increase in Edge product development, the
remaining loan drawdown of GBP2.5m will be repaid in full in August
2021.
Outlook
Following the strong first half performance, the Board is
confident in a successful outcome for the year, slightly ahead of
market expectations
(1) Annual Recurring Revenue (ARR) at period end includes Support
& Maintenance fees, Cloud Services and Subscription Licence and
is assessed as contracted ARR at 30 June 2021 and 31 December
2020, of which is still to be delivered.
(2) Adjusted Operating Profit and Adjusted Operating Margin is
in respect of continuing operations which excludes "Other Items"
charges of GBP1.5m (2020 H1: charge of GBP1.0m) refer to note
5 in this report
(3) EBITDA is calculated by taking the Adjusted Operating Profit
after the allocation of Central Overheads and excludes Interest,
Tax, Depreciation and Amortisation
(4) 2020 H1 results restated to "constant currency" using 2021
rates to exclude foreign currency impact
(5) Adjusted free cash flow is cash from operating activities
before tax less any significant one-off items (the one-off settlement
to the Platform provider of GBP8.1m in H1 2020) and is presented
excluding non-development capital expenditure
------------------------------------------------------------------------
Mark Pickett, Tribal's CEO, commented : "Tribal has enjoyed
another period of good progress, as we deliver on our cloud
expansion opportunity, providing technology to empower the world of
education. We have secured a high level of new customer wins,
reflecting the increasing activity levels within the education
sector and enter the second half in a strong position with
increased levels of recurring revenue and a growing pipeline. We
continue to invest in our people and operations to deliver on our
growing customer footprint. With a clear strategy in place and
growing proof of the demand for our cloud offerings, we look to the
future with increased confidence."
For further information, please contact:
Tribal Group plc Tel: +44 (0) 845 123 6001
Mark Pickett, Chief Executive Officer
Diane McIntyre, Chief Financial Officer
Investec Bank plc (NOMAD & Joint Broker) Tel: +44 (0) 20 7597 5970
Sara Hale, Virginia Bull, Will Godfrey
Singer Capital Markets Limited (Joint Tel: +44 (0) 20 7496 3000
Broker)
Shaun Dobson, Tom Salvesen, Alex Bond
Alma PR Tel: +44 (0) 203 405 0205
Caroline Forde, Robyn Fisher, Molly Gretton
About Tribal Group plc
Tribal Group plc is a pioneering world-leader of education
software and services. Its portfolio includes Student Information
Systems; a broad range of education services covering quality
assurance, peer review, benchmarking and improvement; and student
surveys that provide the leading global benchmarks for student
experience. Working with Higher Education, Further and Tertiary
Education, schools, Government and State bodies, training providers
and employers, in over 55 countries; Tribal Group's mission is to
empower the world of education with products and services that
underpin student success.
Business Review
Introduction
We have continued to execute successfully on our growth
strategy, launching Edge Admissions, our second Edge module, on
time in July 2021 at Tribal's Empower conference, successfully
completing the acquisition of Semestry Ltd, adding scheduling and
timetabling solutions to our Edge family, and adding a further
eight new customers across our Student Information Systems
offerings.
The growing success of our cloud transition can now be seen in
the steady growth of our recurring revenues, as we build our
underlying base of contracts. As a result of the high level of
customer wins at the end of 2020 and into 2021, our backlog of
contracted work has grown considerably, reflecting the strategic
shift in the education sector. We continue to benefit from strong
customer retention and cash generation, providing for a robust
financial platform from which to invest in capturing our expanding
opportunity.
The financial impact of Covid-19 and the changing expectations
of students mean that never has the need for cloud-based solutions
for the Education market been more pressing. We are benefitting
from growing level of activity across the sector, as the market
shifts to a new way of operating, and new priorities rise to the
fore, such as the pastoral care of students and digital
transformation. With our market leading products, as well as our
innovation roadmap, we continue to position ourselves at the
forefront of this evolution in our industry, providing for an
exciting future for Tribal.
Strategy Update
We continue to make good progress towards our goal of being a
pure-play education technology SaaS company, with a global
reach.
Our strategy of 'Sustain and Grow' will see us sustain our
existing products and revenues while growing new products and
revenues by delivering Edge in the public cloud and offering our
existing products as a fully managed cloud SaaS service.
The market appetite for our solutions and standardisation with a
public cloud focus is positive, and the full proposition of Tribal
products from our core student management systems, to Tribal:Cloud
and Edge is resonating well with our customers. It will take time
for full adoption of these solutions by our customers given the
annual cycle around the academic year, however we continue to
believe the long-term opportunity remains significant.
Our key areas of focus in the period were to grow ARR, migrate
customers to our cloud services and deliver our first customers on
Edge Admissions - all of which have been achieved. Our focus for
the second half of the year will be on securing more Tribal:Cloud
contracts, further Edge Admissions customers and continuing to
drive early adoption of Edge.
Semestry acquisition
We were delighted to announce the acquisition of Semestry
Limited in April, a supplier of cloud based scheduling and
timetabling software to the higher education market. The
acquisition expands our Edge family of products, increasing our
addressable market, cross sell opportunities and taking us into new
geographies. Semestry services over 20 customers across five
countries in Europe. We have secured three new customers since
acquisition, have seen a growing pipeline of opportunities, and are
investing in the scalability of the organisation to take advantage
of the growing number of opportunities.
We remain selective in our approach to acquisition opportunities
which will focus on cloud-based solutions, as well as building a
partner ecosystem of best-of-breed solutions which maximises the
value-add for our current customers.
Innovation
We continued to deliver on our Edge strategy, which provides a
compelling vision to new and existing customers to embrace our
next-generation, best-of-breed, cloud native Student Information
System (SIS) solutions. As a cloud native SIS, Edge provides a
competitive differentiator in targeting and acquiring new
customers. In addition, it protects Tribal's customer base by
providing the most efficient, lowest cost route to achieve a
comprehensive, integrated, open-standards SIS which maximises the
student experience and reduces the technical complexity and IT cost
for our customers.
Our continued investment in Edge has seen the full launch of
Edge Admissions in July and the first sales are beginning to come
through.
Now that the programme to develop the core next generation
student management system on the Edge platform is established, we
are starting to leverage our investment in the platform to develop
next-generation added value modules that are fully integrated with
our Edge architecture but can also can be used with existing
products such as SITS:Vision in appropriate markets. This provides
a faster return on investment but also protects our competitive
position.
We are also developing much closer relationships with our
customers through the adoption of our Tribal Cloud services (where
we provide our existing products as a fully managed cloud SaaS
service) and that is enabling us to leverage our technology and
knowledge of best practice so that our customers can gain more
value from our products and services.
Student Information Systems (SIS)
Student Information Systems, our core segment which targets the
further and higher education sectors through our range of software
offerings, delivered a positive performance in the period, growing
customer numbers, revenue and profits and has entered the second
half of the year with a healthy pipeline of opportunities.
Revenues for Student Information Systems grew to GBP31.1m (2020:
GBP29.8m on constant currency), delivering Adjusted Operating
Profit reduction of (1)% to GBP12.0m (2020: GBP12.1m on a constant
currency). The increase in Revenue is offset by increased costs
impacting the Operating Profit as a result of one-off temporary
cost savings in H1 20 relating to Covid-19 for example staff moving
to a 4-day week in May and June.
SITS:Vision
The Group has closed a number of new deals for SITS:Vision
Student Information Systems, demonstrating its ongoing market
leading position, and its newly launched cloud offerings, signing
the University of Solent within the period and University of West
London post period end. Following the onset of Covid-19, the Group
moved to remote delivering and implementation and all these
contracts have successfully commenced.
We have also begun implementation of our largest SITS deal to
date, worth approximately GBP17m over eight years, with Nanyang
Technological University, a Top 50 world university secured in the
prior year. The contract also encompasses SITS in the Tribal:Cloud
and Edge products, together with Student Marketing &
Recruitment and Student Support & Welfare.
Callista
Our Callista student information system software, which is used
by 11 of our Australian University customers, representing almost
25% of Australian universities, continued to perform well
completing the third year of a four-year contract extension.
Discussions have commenced for the next extension to the contract
and is expected to include Edge as part of the solution.
Tribal:Cloud
Following the launch last year of our Tribal:Cloud solution,
enabling all existing products to be provided as a fully managed
SaaS service by Tribal in the public cloud, we were delighted to
add the University of Warwick to our growing list of Tribal:Cloud
customers. We continue to have positive conversations across our
extensive customer base as they explore the benefits a move to the
cloud can bring their organisation and are confident of continued
uptake.
Edge: Admissions
Following the launch of Edge Submissions, the first Edge module
in 2020, we successfully launched the second major module, Edge
Admissions in July 2021 and secured the first two customers:
Aberystwyth University, an existing Tribal customer using the
Dynamics solution and the University of the Creative Arts, an
existing SITS customer. Admissions is the first significant module
on the Edge platform, delivering staff and prospective students,
the solutions and tools they need to succeed in the ever-evolving
world of education. The solution can be integrated with the SITS
Student Management System, or any other SMS, providing the Group
with a significant addressable market.
Edge: Student Recruitment and Student Welfare
Sales of the Dynamics based Edge Student Recruitment and Student
Welfare modules have developed, with sales made to Te Whare W nanga
o Awanui rangi in New Zealand, Brunel University and the University
of St Andrews in the UK in the period.
Ebs
Our ebs software, which predominantly focuses on the Further
Education and Vocational Learning markets but increasingly being
considered by smaller universities, continued to perform strongly.
The Group won two new ebs contracts during the period, Te Whare W
nanga o Awanui rangi in New Zealand and Liverpool City Council
Adult Education.
Education Services (ES)
While our Education Services business continued to be impacted
by the global school closures globally, due to the Covid-19
pandemic, the team maintained the key assurance, training and
inspections contracts in the UK, US and New Zealand largely
remotely. The business has a good pipeline of opportunities for the
second half and is well positioned once Covid-19 closures ease.
In the UK the main contracts continued to operate at the same
level with work on National Professional Qualifications (NPQ)
moderations, Advanced Mathematics Support Programme (AMSP) and
National Centre for the Excellence of Teaching Mathematics (NCETM)
professional development and training all continue to be
successfully delivered remotely.
Despite continued school closures due to Covid-19 in the US, we
have been able to deliver to plan on the New York State Education
Department (NYSED) contract. The Performance Review Program for
Initial Licensure (PRPIL) in Massachusetts experienced lower
teacher license sales in H1 but this is expected to pick up in H2.
In the Middle East there has been a significant reduction in
inspections compared to last year as the ADEK contract continues to
be paused, this was partially offset by smaller contract wins in
Bahrain, albeit at lower levels than previous years.
Two existing customers extended their contracts in the period -
the DfE Quality Assurance of National Professional Qualifications
for an additional 18 months and the DfE Advanced Mathematics
Support Programme for 15 months. We also won and delivered in H1
2021 a number of new short-term contracts, including, British
Embassy in Bahrain to support school improvement, the Ministry of
Education in Bahrain for capability assessment and the Cayman
Islands Government to provide remote mathematics training, all of
which generated significant margins which offset the reduction in
revenue seen in H1 2021.
Adjusted Operating Profit in Education Services increased to
GBP2.2m (H1 2020: GBP1.8m constant currency) on a 10.7% reduction
in Revenue to GBP8.2m (H1 2020: GBP9.2m constant currency)
demonstrating the resilience of the business, pro-active cost
management undertaken and continued remote delivery.
Operations and people
We are continually evolving our people agenda to enhance the
Group's growth and transformation as a business. Our agenda is
focused on fuelling performance with a clear alignment to our Group
objectives. We want to ensure that every employee has the clarity
of purpose, motivation, support, and recognition to execute on
those goals. We are a fast paced, dynamic organisation focused on
the future and we have big ambitions, with people who are deeply
committed with the drive to succeed.
Our evolving operational model is built upon our increasing
focus on customer success and alignment to Tribal's 'as-a-service'
transition. The opening of our new global delivery centre in Kuala
Lumpur, Malaysia in 2020 is already actively delivering live
implementations and the continued expansion of our development
centre in Manila has seen it grow by 26% in the last year.
Together, these teams provide the full development resource for a
product or a long-term contract. It is the creation of these
centres of excellence that will enhance our ability to scale
efficiently for growth and to allow us to drive continued
investment in strategic capabilities for value creation.
Our investment in technical and business architecture capability
is also crucial in connecting our solution to the customer problem,
accelerating their time to value whilst laying the foundation for
customer success. In 2020 we instigated our Veritas internal
transformation programme, which is focused on driving
simplifications, standardisation, and optimisation right across our
value chain. This will deliver real return on investment in 2022
and beyond.
Tribal held its inaugural ESG Committee Meeting in April 2021
and agreed Terms of Reference to ensure Board advocacy, structure
and focus of responsible business practices prospered. We have seen
good progress over the last six months and we look forward to
presenting our ESG report at the year end.
In March 2020, we announced our partnership with Student Minds,
the UK charity aspiring to transform the state of student mental
health, so that all in higher education can thrive. Since then, we
have been delighted to enhance our involvement further by becoming
an official Communications Champion for Student Space, a service
set up by Student Minds to help students find the support they need
during the Coronavirus pandemic. Becoming a Champion involves an
additional commitment to support student mental health, by
promoting Student Space to our networks. We have embraced the
expanded role and seen it as a real opportunity to contribute to
the Student Minds mission in a practical and meaningful way, by
using our platform within the education community to build valuable
awareness and extend the reach and impact of the charity.
Some of our ESG initiatives have become core areas of focus
within parts of our operation and we are adopting a long-term view
in embedding sustainable change and improvement. For example,
considering our aspiration to become a more diverse organisation we
recognise the need to be prepared to reconsider every aspect of how
we attract, select and recruit talent. We have now developed a new
Recruitment Charter which puts empowering inclusive practice as one
of two core aims, laying out a set of principles that will guide
the review and improvement of our practices. In June, we became a
signatory of the Tech Talent Charter and made a public commitment
and a series of pledges in relation to our approach to recruitment
and retention, sharing of data and best practices. We look forward
to becoming active members of the tech community addressing the
challenges and opportunities as we strive to become more
diverse.
Tribal is proud to be certified to both the ISO 9001:2015 and
ISO/IEC 27001:2013 standards, demonstrating our commitment to:
-- Consistently delivering products and services that meet both
customer and statutory/regulatory requirements.
-- Helping keep information secure, ensuring the continuity of
our operations, and making better business decisions by addressing
risks and opportunities.
-- Ensuring we have a focus on the continual improvement of our
products, services, and internal governance systems.
Having already achieved certification across our UK operations,
for both standards, we extended the scope of our certification
earlier this year to include our operations in Australasia and the
Philippines. This not only further demonstrates our commitment to
identifying and implementing best practice across our business, but
also gives us consistency in our approach towards the management of
quality and information security globally.
We have now reopened our offices and following consultation with
our teams have returned to three days a week in the office. The
teams are embracing the new form of hybrid working, continuing to
restrict travel wherever possible, as has proven so successful
during the pandemic.
Outlook
Tribal has enjoyed another period of strong progress, as we
deliver on our cloud expansion opportunity, providing technology to
empower the world of education. We have secured a high level of new
customer wins, reflecting the increasing activity levels within the
education sector and enter the second half in a strong position
with an increased level of recurring revenue and a growing
pipeline. We continue to invest in our people and operations to
deliver on our growing customer footprint. With a clear strategy in
place and growing proof of the demand for our cloud offerings, we
look to the future with increased confidence. Following the strong
first half performance, the Board is confident in a successful
outcome for the year, slightly ahead of market expectations.
Financial review
Results 2021 20 Change Change
6 H1 20 Constant Constant
months Constant
to Currency Currency
30 2020 Currency %
June H1
GBPm Reported
Revenue 39.3 38.2 39.0 0.3 1%
------ ---------- ---------- ---------- ----------
Student Information
Systems 31.1 29.0 29.8 1.3 4%
------ ---------- ---------- ---------- ----------
Education Services 8.2 9.2 9.2 (1.0) (11)%
------ ---------- ---------- ---------- ----------
Adjusted Operating
Profit
(before Central Overheads)(1) 14.2 13.4 13.9 0.3 2%
------ ---------- ---------- ---------- ----------
Student Information
Systems 12.0 11.3 12.1 (0.1) (1)%
------ ---------- ---------- ---------- ----------
Education Services 2.2 2.1 1.8 0.4 23%
------ ---------- ---------- ---------- ----------
Central Overheads(2) (5.0) (5.3) (5.3) 0.3 5%
------ ---------- ---------- ---------- ----------
Adjusted Operating
Profit (EBITDA) (1) 9.2 8.1 8.6 0.6 7%
------ ---------- ---------- ---------- ----------
Adjusted Operating
Margin (EBITDA) (1) 23.3% 21.3% 22.0% - 130bps
------ ---------- ---------- ---------- ----------
(1) Adjusted Operating Profit and Adjusted Operating Margin is
in respect of continuing operations and exclude charges reported in
'Other items' of GBP1.5m (2020 H1: GBP1.0m), refer to note 5 in
this report, and before Interest, Tax, Depreciation and
Amortisation.
(2.) Central overheads are made up of costs that are not
directly attributable to either Student Information Systems or
Education Services.
Over 40% of Tribal's income is generated outside the UK and is
therefore subject to foreign exchange movement. Overall, there was
a favourable impact on last year's results due to foreign exchange
fluctuations of GBP0.8m in Revenue and GBP0.5m in Adjusted
Operating Profit, due particularly to the Group's exposure to the
Australian dollar, which was on average 7% weaker against GBP
sterling in 2021 H1 compared with 2020 H1.
The Revenue and Adjusted Operating Profit by segment in the
table shows the reported results for 2021 H1 and 2020 H1, and the
2020 H1 results restated to "constant currency" using 2021 rates to
exclude foreign currency impact. The growth percentages shown are
on the 2020 constant currency numbers. All comparatives reported
below are on a constant currency basis.
Revenue
In the six months ended 30 June 2021 the Group's Revenue was up
1% to GBP39.3m (2020 H1: GBP39.0m). Student Information Systems
increased by 4% to GBP31.1m (2020 H1: GBP29.8m) helped by a good
performance in EMEA and a strong start to delivery in Singapore
following the Nanyang Technological University contract win at the
end of 2020. Education Services decreased by 11% to GBP8.2m (2020
H1: GBP9.2m) mainly due to the impact of Covid-19 on contracts in
the Middle East with most activities paused; this was partially
offset by continued strong delivery on the US contracts and a
steady delivery of benchmark and student surveys.
Adjusted Operating Profit (EBITDA)
Adjusted Operating Profit (before Central Overheads) increased
by 2% to GBP14.2m (2020 H1: GBP13.9m). Adjusted Operating Profit
(EBITDA) increased 7% to GBP9.2m (2020 H1: GBP8.6m) and Adjusted
Operating Margin increased to 23% (2020 H1: 22%).
Student Information Systems remained largely flat decreasing by
1% to GBP12.0m (2020 H1: GBP12.1m). Revenue increased because of
new contract wins and contractual uplifts however, this was offset
by increased staff costs in H1 compared to prior year as the
one-off cost savings from staff reducing to a 4-day week were not
repeated. Education Services increased by 23% to GBP2.2m (2020 H1:
GBP1.8m) mainly due to the impact of Covid-19 on contracts in the
Middle East with most activities paused and the delivery of a
number of new short-term contracts in H1 21 which generated
significant margins offsetting the reduction in revenue seen in H1
21.
Central overheads, representing costs in HR, IT, Finance,
Marketing and Management that aren't directly attributable to lines
of business totalled at GBP5.0m (2020 H1: GBP5.3m), including the
improved impact of foreign exchange in the period of (GBP0.1m)
(2020 H1: GBP0.5m). We continue to focus on reducing these costs
and have grown our Manila office in the Philippines to help support
certain finance and HR processes, alongside the existing work of
supporting ebs, SchoolEdge and business services. This has enabled
us to improve margin without impacting the Group's ability to
deliver on customer contracts and generate growth. The Group
continues to identify cost saving measures and effectively manages
its costs base and foreign currency exposure.
Statutory Profit After Tax was GBP4.4m (2020 H1: GBP3.8m) and
Diluted Earnings Per Share (EPS) were 2.1p (2020 H1: 1.9p).
Net Cash and Adjusted Free Cash Flow
At the end of the period, the Group had Net Cash of GBP4.3m
(2020 FY: GBP9.5m; 2020 H1: GBP6.7m) and Adjusted Free Cash Flow of
GBP4.2m (2020 H1: GBP4.3m). Collections continued throughout the
period with minimal delays to payment terms. The Group continues to
benefit from the timing of working capital requirements as the
business works to a remote delivery model, improving on efficiency
and reducing time and costs previously associated with on-site
delivery. The Group paid GBP4.5m as initial consideration of
Semestry Limited and paid deferred consideration of GBP1.3m
relating to the acquisition of Tribal Dynamics.
The Group has bank facilities of GBP10m of which GBP2.5m was
drawn down as at 30 June 2021 (2020 H1: GBP10m) and will be repaid
in full in August 2021.
Student Information Systems
Overall Adjusted Operating Profit decreased to GBP12.0m (2020
H1: GBP12.1m) and Adjusted Operating Margin decreased to 38% (2020
H1: 40%).
License and development revenue increased to GBP4.1m (2020 H1:
GBP3.3m). In line with IFRS 15, License revenue on larger contracts
is recognised as the implementation progresses and fees relate to
sale of new software licenses as well as customer paid enhancements
(development fees) on previous sales. Tribal has seen a slight
change in revenue recognition profiles from the move to
subscription selling, whereby the License is combined with the
Support and Maintenance fee which is paid for and recognised
throughout the life of the contract, rather than up front. There is
an increasing amount of subscription (recurring) revenue, with
GBP2.7m (2020 H1: GBP1.4m) recognised in the period.
Implementation revenue decreased marginally to GBP6.4m (2020 H1:
GBP6.6m) due to slight contract delays due to Covid-19. Revenues
are typically based on day rate fees although occasionally we
operate under fixed fee contracts for defined implementations.
Support & Maintenance revenue remained consistent at
GBP16.8m (2020 H1: GBP16.8m). This reflects the new license and
account management sales achieved, together with the contractual
annual inflationary uplift offset by a reduction in our Long-Term
contracts.
Cloud Services revenue continued to increase across all markets
at GBP3.7m (2020 H1: GBP2.9m). The main cloud hosting services
revenue increased with interest from customers in moving to the
public cloud remaining high; however, some sales have been delayed
as customers have needed to focus on short term issues because of
Covid-19.
Education Services
School Inspections and Related Services revenue decreased to
GBP5.4m (2020 H1: GBP6.6m) largely due to the ADEK contract
continuing to be paused in the Middle East as a result of school
closures due to Covid-19. There have been a number of smaller
contracts delivered in the period offsetting the shortfall from
ADEK.
Surveys and Benchmarking revenue remained consistent at GBP1.3m
(2020 H1: GBP1.2m). Surveys revenue was fractionally ahead as the
International Student Barometer for the southern hemisphere caught
up after being delayed until 2021 due to Covid-19, along with a
number of smaller international surveys. Benchmarking revenue
remained at the same level as last year.
Asset Management (K2) and Software Solutions revenue increased
to GBP1.4m (2020 H1: GBP1.3m), primarily due to royalties due to
increased end-consumer demand on a Software Solutions contract.
Overall Adjusted Operating Profit increased to GBP2.2m (2020 H1:
GBP1.8m) and Adjusted Operating Margin increased to 27% (2020 H1:
20%). The variable cost base offset the impact of reduced revenue
on the contracts in the Middle East with the majority of the work
performed by contractors in addition to improved efficiencies of
the remote delivery model.
Key Performance Indicators (KPIs)
The Group monitors its performance using the KPIs in the table
below.
20 20 Change Change
KPIs 20 20 H1 Constant Constant Constant
6 months to 30 June 2021 H1 Reported Currency Currency Currency %
Revenue GBP39.3m GBP38.2m GBP39.0m GBP0.3m 1%
---------- ---------- ---------- ---------- ------------
Adjusted
Operating
Profit
(EBITDA)(2,
3) GBP9.2m GBP8.1m GBP8.6m GBP0.6m 7%
---------- ---------- ---------- ---------- ------------
Adjusted
Operating
Margin
(EBITDA)(2,
3) 23.3% 21.3% 22.0% - 130bps
---------- ---------- ---------- ---------- ------------
Annual
Recurring
Revenue
(ARR)
at
period
end(1) GBP49.6m GBP47.5m GBP47.2m GBP2.4m 5%
---------- ---------- ---------- ---------- ------------
Committed GBP144.3m GBP144.4m GBP142.6m - -
Income
(backlog)(4,5)
---------- ---------- ---------- ---------- ------------
Adjusted
Free
Cash
Flow
(6) GBP4.2m GBP4.3m GBP4.3m GBP(0.8)m (20)%
---------- ---------- ---------- ---------- ------------
Operating
Cash
Conversion 66% 68% 68% - (200)bps
---------- ---------- ---------- ---------- ------------
Staff
Retention 95% 92% - - -
---------- ---------- ---------- ---------- ------------
Revenue GBP87.6k GBP87.7k - - -
/
Average
FTE
(5)
(GBP'000s:
annualised)
---------- ---------- ---------- ---------- ------------
(1) Annual Recurring Revenue (ARR) at period end includes
Support & Maintenance fees, Cloud Services and Subscription
Licence and is assessed as contracted ARR at the 30 June 2021 and
31 December 2020, of which some is still to be delivered.
(2) Adjusted Operating Profit and Adjusted Operating Margin is
in respect of continuing operations which excludes "Other
Items"
charges of GBP1.5m (2020 H1: charge of GBP1.0m) refer to note 5
in this report
(3) EBITDA is calculated by taking the Adjusted Operating Profit
after the allocation of Central Overheads and excludes Interest,
Tax,
Depreciation and Amortisation
(4) Committed income (backlog) relates to the total value of
orders which have been signed on or before, but not delivered by,
30 June 2021. This is reported on an IFRS15 basis and represents
the best estimate of business expected to be delivered and
recognised in future periods, and includes License sales,
Implementation work and two years of Support & Maintenance
revenue
(5) 2020 committed income and revenue / average FTE comparatives are as at 31 December 2020
(6) Adjusted free cash flow is cash from operating activities
before tax less any significant one off items (the one-off
settlement to the Platform provider of GBP8.1m in H1 2020) and is
presented excluding non-development capital expenditure
Annual Recurring Revenue (ARR) at period end, which represents
annual Support & Maintenance fees paid on all software and
Cloud hosting services, and License sold on a subscription basis
contracted at the 30 June 2021, increased by 5.0% on a constant
currency basis to GBP49.6m (2020 FY: GBP47.2m). The growth includes
the benefit of new license sales in 2020 and contractual
inflationary uplifts applied annually.
Committed Income (backlog) relates to the total value of orders
which have been signed off on or before, but not delivered by 30
June 2021. This represents the best estimate of business expected
to be delivered and recognised in future periods and includes two
years of Support and Maintenance revenue. As of 30 June 2021 this
increased to GBP144.3m (2020 FY: GBP142.6m). The majority of the
increase relates to the new wins and contract extensions in SIS
offset by work delivered in the first half of the year.
Product Development Costs: The Group spent GBP7.3m on product
development, of which GBP4.4m was Edge capitalisation andGBP0.1m
was Tribal Dynamics capitalisation(2020 H1: GBP5.2m spent; GBP3.0
capitalised in relation to Edge and GBP0.1m in relation to Tribal
Dynamics). The net P&L charge after removing capitalised spend
was GBP2.8m (2020 H1: GBP2.9m), and GBP2.3m excluding amortisation
(2020 H1: GBP2.2m). We continue to invest in our core products,
including SITS, ebs, SchoolEdge, Dynamics and Maytas adding new
modules and additional functionality as well as statutory
updates.
Items excluded from adjusted profit figures: Certain items not
directly related to the trading business or regarded as exceptional
in nature have been removed from the adjusted profit figure and
disclosed as "Other Items" on the Income Statement to provide
greater understanding of the Group's underlying performance.
During 2021, a review of other items was carried out to identify
the true nature of the components of financial performance. As part
of the review it was decided that pension scheme administration
fees and redundancy costs are now included as part of the Group's
underlying trading activities, unless part of an approved
restructuring programme.
The main adjustments are as follows:
-- Employee-related Share Option charges (including employer
related taxes) increased to GBP1.1m (2020 H1: GBP0.6m) and are
excluded from the Adjusted Operating profit. The charges in the
current year relate to the Long-Term Incentive Plan options (LTIPs)
which were granted to the executive and senior management teams in
2018, 2019 and 2020 and increase in related national insurance
accrual, in addition some option holders were entitled to a
dividend equivalent.
-- Amortisation of IFRS3 Intangibles charge in relation to IFRS3
intangible assets of GBP0.3m (2020 H1: GBP0.6m) arose from
separately identifiable assets recognised as part of previous
acquisitions. The assets principally relate to software and
customer relationships and are amortised over their expected life,
this was determined in the year the acquisition took place.
-- Acquisition costs of GBP0.6m (2020 H1: GBPnil) include
amounts relating to corporate activity in the period, specifically
the acquisition of Semestry Ltd.
Net Cash and Cash flow
Net cash at 30 June 2021 was GBP4.3m (2020 H1: GBP6.7m).
Cash
flow
6
months
to
30 2020
June 2021 H1
GBPm H1 Reported
Net cash from operating activities
before tax 5.1 (3.7)
Net tax paid (1.1) (0.1)
Net
cash
from
operating
activities 4.0 (3.8)
Capitalised product development (4.7) (3.2)
Capital expenditure (1.0) (0.2)
Acquisition of Semestry Limited (4.5) -
Cash acquired on acquisition of subsidiary 0.3 -
Deferred consideration (1.3) (1.7)
Gross proceeds on issue of shares 2.6 0.2
Loan arrangement fees & interest (0.1) (0.1)
Loan drawdown 2.5 10.0
Net repayment of lease liabilities (0.5) (0.5)
Net gain on forward contracts 0.2 -
Net (decrease)/increase in cash & cash
equivalents (2.4) 0.7
Cash & cash equivalents at beginning
of the year 9.5 16.5
Cash & cash equivalents at end of period 7.1 17.2
Less: Effect of foreign exchange rate
changes (0.3) (0.5)
Cash & cash equivalents at end of period 6.8 16.7
Borrowings (2.5) (10.0)
Net Cash & cash equivalents at the
end of the period 4.3 6.7
============================================ ====== ===========
Operating Cash Inflow was GBP4.0m (2020 H1: GBP(3.8)m, last year
includes GBP8.1m paid in respect of the final settlement of the
platform provider dispute in 2020. Cash conversion was 66% compared
to (2020 H1: 68% after excluding the settlement. We continue to
have strong collections and continued improvements in working
capital. Most Support & Maintenance and Cloud Services renewals
are invoiced and collected towards the end of the calendar year,
and cash conversion is expected to normalise in the second half of
the year.
Adjusted free cashflow equals net cash from operating activities
before tax GBP5.1m (2020 H1: GBP(3.7)m) less all non-development
capital expenditure GBP1m (2020 H1 GBP0.2m).
Share Options and Share Capital: The shares issued during the
period were in order to satisfy exercises of share-based payment
schemes. 3,872,410 shares were issued between January and June
2021. The exercise costs resulted in cash receipts of GBP2.6m. As
at 30 June 2021, there were 209,570,719 shares issued (2020 FY:
205,698,309).
Earnings per share: Diluted earnings per share increased by 10%
to 2.1p (2020 H1: 1.9p). Adjusted diluted earnings per share from
continuing operations before other costs, including intangible
asset amortisation, restructuring costs and share based payment
charges, this reflects the Group's underlying trading performance,
increased by 22% to 2.8p (2020 H1: 2.3p).
Dividends: The final dividend for 2020 of 1.2p was paid by the
Company in July 2021. A one-off interim dividend of 1.1p per share
was paid in December 2020. The Board remains committed to a
progressive dividend policy and it is Tribal's expectation that
only a final dividend will be paid going forward. The combined
dividend for 2020 was 2.3p per share. (2019: nil per share).
Condensed consolidated income statement
For the six months to 30 June 2021
Six months Six months
ended ended
Other 30 June Other 30 June
(note 2021 (note 2020
Adjusted 5) Total Adjusted 5) Total
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- ----- --------- --------- ----------- --------- --------- -----------
Continuing operations
Revenue 4 39,290 - 39,290 38,183 - 38,183
Cost of sales (18,146) - (18,146) (17,912) - (17,912)
------------------------------- ----- --------- --------- ----------- --------- --------- -----------
Gross profit 21,144 - 21,144 20,271 - 20,271
------------------------------- ----- --------- --------- ----------- --------- --------- -----------
Total administrative expenses (13,337) (1,988) (15,325) (13,704) (1,529) (15,233)
------------------------------- ----- --------- --------- ----------- --------- --------- -----------
Operating profit/(loss) 4 7,807 (1,988) 5,819 6,567 (1,529) 5,038
Investment income 217 - 217 8 - 8
Finance costs 6 (118) - (118) (176) (185) (361)
------------------------------- ----- --------- --------- ----------- --------- --------- -----------
Profit/(loss) before tax 7,906 (1,988) 5,918 6,399 (1,714) 4,685
Tax (charge)/credit 7 (2,025) 533 (1,492) (1,640) 733 (907)
------------------------------- ----- --------- --------- ----------- --------- --------- -----------
Profit/(loss) attributable
to the owners of the parent 5,881 (1,455) 4,426 4,759 (981) 3,778
------------------------------- ----- --------- --------- ----------- --------- --------- -----------
Earnings per share
Basic 8 2.9p (0.8)p 2.1p 2.3p (0.4)p 1.9p
Diluted 8 2.8p (0.7)p 2.1p 2.3p (0.4)p 1.9p
------------------------------- ----- --------- --------- ----------- --------- --------- -----------
All activities are from continuing operations
Condensed consolidated income statement
For the year to 31 December 2020
Other Year ended
(note 31 December
Adjusted 5) 2020
Note GBP'000 GBP'000 GBP'000
------------------------------- ------- --------- --------- -------------
Revenue 4 72,954 - 72,954
Cost of sales (34,322) - (34,322)
---------------------------------- ------- --------- --------- -------------
Gross profit 38,632 - 38,632
Total administrative expenses (26,831) (2,693) (29,524)
---------------------------------- ------- --------- --------- -------------
Operating profit/(loss) 4 11,801 (2,693) 9,108
Investment income 53 - 53
Finance costs 6 (345) (307) (652)
---------------------------------- ------- --------- --------- -------------
Profit/(loss) before tax 11,509 (3,000) 8,509
Tax (charge)/credit 7 (3,156) 1,005 (2,151)
---------------------------------- ------- --------- --------- -------------
Profit/(loss) attributable
to the owners of the parent 8,353 (1,995) 6,358
---------------------------------- ------- --------- --------- -------------
Earnings per share
Basic 8 4.1p (1.0)p 3.1p
Diluted 8 4.0p (0.9)p 3.1p
---------------------------------- ------- --------- --------- -------------
Condensed consolidated statement of comprehensive income and
expense
For the six months to 30 June 2021
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
---------------------------------------------------------- ----------- ----------- -------------
Profit for the period 4,426 3,778 6,358
Other comprehensive (expense)/income
Items that will not be reclassified subsequently
to profit or loss:
Re-measurement of defined benefit pension schemes - - (438)
Deferred tax on measurement of defined benefit
pension schemes 57 - 89
Items that may be reclassified subsequently to
profit or loss:
Exchange differences on translation of foreign
operations (654) 1,113 1,120
---------------------------------------------------------- ----------- ----------- -------------
Other comprehensive (expense)/income for the period
net of tax (654) 1,113 771
---------------------------------------------------------- ----------- ----------- -------------
Total comprehensive income for the period attributable
to equity holders of the parent 3,829 4,891 7,129
---------------------------------------------------------- ----------- ----------- -------------
Condensed consolidated balance sheet
As at 30 June 2021
30 June 30 June 31 December
Note 2021 2020 2020
GBP'000 GBP'000 GBP'000
----------------------------------------------------------- ------- --------- --------- ------------
Non-current assets
Goodwill 9 31,276 26,505 26,661
Other intangible assets 10 29,614 21,444 24,376
Property, plant and equipment 1,066 1,262 1,069
Right of use assets 2,805 3,664 3,342
Net investment in lease 151 197 174
Deferred tax assets 4,544 4,380 4,829
Contract assets 152 22 22
-------------------------------------------------------------- ------- --------- --------- ------------
69,608 57,474 60,473
----------------------------------------------------------- ------- --------- --------- ------------
Current assets
Trade and other receivables 11 12,968 10,752 11,036
Net investment in lease 46 46 46
Contract assets 5,627 4,237 3,951
Current tax assets 4 26 -
Cash and cash equivalents (excluding bank overdrafts) 17 6,791 16,739 9,520
-------------------------------------------------------------- ------- --------- --------- ------------
25,436 31,800 24,553
----------------------------------------------------------- ------- --------- --------- ------------
Total assets 95,044 89,274 85,026
-------------------------------------------------------------- ------- --------- --------- ------------
Current liabilities
Trade and other payables 12 (6,859) (6,340) (6,052)
Contract liabilities (22,959) (19,938) (23,078)
Accruals (7,641) (6,490) (7,480)
Current tax liabilities (2,653) (2,457) (2,861)
Lease liabilities (907) (999) (1,020)
Provisions 13 (203) (362) (265)
-------------------------------------------------------------- ------- --------- --------- ------------
(41,222) (36,586) (40,756)
----------------------------------------------------------- ------- --------- --------- ------------
Net current liabilities (15,786) (4,786) (16,203)
-------------------------------------------------------------- ------- --------- --------- ------------
Non-current liabilities
Contract liabilities (582) (316) (330)
Retirement benefit obligations (958) (540) (958)
Lease liabilities (2,085) (2,882) (2,551)
Other payables 12 (182) (30) (40)
Deferred tax liabilities (1,534) (1,021) (1,250)
Borrowings 17 (2,500) (10,000) -
Provisions 13 (932) (908) (923)
-------------------------------------------------------------- ------- --------- --------- ------------
(8,773) (15,697) (6,052)
----------------------------------------------------------- ------- --------- --------- ------------
Total liabilities (49,995) (52,283) (46,808)
-------------------------------------------------------------- ------- --------- --------- ------------
Net assets 45,049 36,991 38,218
-------------------------------------------------------------- ------- --------- --------- ------------
Equity
Share capital 14 10,479 10,285 10,285
Share premium 18,363 15,951 15,951
Other reserves 27,556 26,025 26,926
Accumulated losses (11,349) (15,270) (14,944)
-------------------------------------------------------------- ------- --------- --------- ------------
Total equity attributable to equity holders of the parent 45,049 36,991 38,218
-------------------------------------------------------------- ------- --------- --------- ------------
Condensed consolidated cash flow statement
for the six months to 30 June 2021
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2021 2020 2020
Note GBP'000 GBP'000 GBP'000
---------------------------------------------- ------- ----------- ----------- -------------
Net cash from/(used in) operations 16 3,994 (3,804) 5,461
------------------------------------------------- ------- ----------- ----------- -------------
Investing activities
Interest received - 5 6
Purchases of property, plant and equipment (356) (146) (356)
Expenditure on intangible assets (5,281) (3,189) (7,129)
Acquisition of Investments in subsidiaries 14 (4,524) - -
Cash acquired on acquisition of subsidiary 14 317 - -
Payment of deferred contingent consideration
for acquisitions (1,326) (1,732) (1,732)
Net gain on forward contracts 214 - 41
Net cash outflow from investing activities (10,956) (5,062) (9,170)
------------------------------------------------- ------- ----------- ----------- -------------
Financing activities
Interest paid (66) (46) (259)
Loan arrangement fees (45) (65) (65)
Draw down on Bank loan 2,500 10,000 -
Equity dividend paid - - (2,254)
Proceeds on issue of shares 2,606 239 239
Proceeds from sub-leases 26 26 52
Payment of lease liabilities (511) (546) (980)
Net from/(cash used) in financing activities 4,510 9,608 (3,257)
------------------------------------------------- ------- ----------- ----------- -------------
Net (decrease)/increase in cash and cash
equivalents (2,452) 742 (6,976)
------------------------------------------------- ------- ----------- ----------- -------------
Net cash and cash equivalents at beginning
of period 9,520 16,463 16,463
Effect of foreign exchange rate changes (277) (466) 33
------------------------------------------------- ------- ----------- ----------- -------------
Net cash and cash equivalents at end of
period 17 6,791 16,739 9,520
------------------------------------------------- ------- ----------- ----------- -------------
Condensed consolidated statement of changes in equity
For the six months to 30 June 2021
Share Share Other Accumulated Total
Capital Premium reserves losses Equity
Note GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------------ ------ --------- --------- ---------- ------------ -----------
Balance at 31 December 2019 9,979 15,539 26,029 (20,228) 31,319
Profit for the period - - - 3,778 3,778
Other comprehensive income for
the period - - - 1,113 1,1133
-------------------------------------- ---------------- --------- ---------- ------------ -----------
Total comprehensive income for
the period - - - 4,891 4,891
-------------------------------------- ---------------- --------- ---------- ------------ -----------
Issue of equity share capital 239 - - - 239
Credit to equity for share-based
payments - - 446 - 446
Share options exercised 67 412 (479) - -
Tax credit on credit to equity
for share-based payments - - - 67 67
Foreign exchange difference on
share-based payments - - 29 - 29
Contributions by and distributions
to owners 306 412 (4) 67 781
Balance at 30 June 2020 10,285 15,951 26,025 (15,270) 36,991
Profit for the period - - - 2,580 2,580
Other comprehensive expense for
the period - - - (342) (342)
-------------------------------------- ---------------- --------- ---------- ------------ ---------
Total comprehensive income for
the period - - - 2,238 2,238
-------------------------------------- ---------------- --------- ---------- ------------ ---------
Issue of equity share capital - - - - -
Equity dividend paid - - - (2,254) (2,254)
Credit to equity for share-based
payments - - 893 - 893
Tax credit on credit to equity
for share-based payments - - - 342 342
Foreign exchange difference on
share-based payments - - 8 - 8
-------------------------------------- ---------------- --------- ---------- ------------ ---------
Contributions by and distributions
to owners - - 901 (1,912) (1,011)
-------------------------------------- ---------------- --------- ---------- ------------ ---------
Balance at 31 December 2020 10,285 15,951 26,926 (14,944) 38,218
Profit for the period - - - 4,426 4,426
Other comprehensive expense for
the period - - - (597) (597)
-------------------------------------- ---------------- --------- ---------- ------------ ---------
Total comprehensive income for
the period - - - 3,829 3,829
-------------------------------------- ---------------- --------- ---------- ------------ ---------
Issue of equity share capital 194 2,412 - - 2,606
Credit to equity for share-based
payments - - 650 - 650
Tax charge on credit to equity
for share-based payments - - - (234) (234)
Foreign exchange difference on
share-based payments - - (20) - (20)
-------------------------------------- ---------------- --------- ---------- ------------ ---------
Contributions by and distributions
to owners 194 2,412 630 (234) 3,002
-------------------------------------- ---------------- --------- ---------- ------------ ---------
Balance at 30 June 2021 10,479 18,363 27,556 (11,349) 45,049
-------------------------------------- ----- --------- --------- ---------- ------------ -----------
Notes to the condensed consolidated financial information
for the six months to 30 June 2021
1. General information
The condensed consolidated financial information for the six
months ended 30 June 2021 was approved by the Board of Directors on
12 August 2021. This condensed consolidated interim financial
information does not comprise statutory accounts within the meaning
of section 434 of the Companies Act 2006.
Statutory accounts for the year ended 31 December 2020 were
approved by the Board of Directors on 17 March 2021. A copy of the
statutory accounts for that year has been delivered to the
Registrar of Companies. The auditor reported on those accounts: its
report was unqualified, and did not contain a statement under
section 498(2) or (3) of the Companies Act 2006.
2. Accounting policies
The condensed consolidated set of financial statements included
in this half-yearly financial report has been prepared in
accordance with the Disclosure and Transparency Rules of the
Financial Services Authority.
The condensed consolidated financial information should be read
in conjunction with the annual financial statements for the year
ended 31 December 2020 which have been prepared in accordance with
international accounting standards in conformity with the
requirements of the Companies Act 2006.
In preparing these condensed interim financial statements, the
significant judgements made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty
were as stated within the consolidated financial statements for the
year ended 31 December 2020.
The accounting policies applied are consistent with those of the
annual financial statements for the year ended 31 December
2020.
3. Going concern
Tribal had net cash and cash equivalents of GBP4.3m at the end
of H1 2021, this includes GBP2.5m drawdown of the GBP10m bank
facility. The Group has a GBP10m facility to cover general
corporate and working capital requirements of the Group, plus
access to an undrawn UK and Australian overdraft of GBP2.0m and
$AUD 2.0m respectively. Tribal Group plc has undertaken to make
adequate financial resources available to the Group to meet its
current and future obligations as and when they fall due.
The Group's main business is software related through the
provision of Student Information Systems (SIS) to education
institutions in the UK, Australia, and a number of other overseas
locations. Revenue is generated from the sale of software licenses
and related implementation work, and the ongoing provision of
support & maintenance and cloud/hosting services.
To date the support & maintenance and cloud/hosting services
have been unaffected. Customers have continued to pay for the
services, all of which can and are being delivered remotely. This
income, which is annual recurring revenue (ARR) represents over
half of our total annual revenue and provides a good level of
forward visability to the business. We expect this position to
continue.
The Group had a positive start to the year, closing a number of
significant sales to new and existing customers. The financial
impact of Covid-19 and the changing expectations of students, means
that never has the need for cloud-based solutions for the Education
market been more pressing. The investments the Group continue to
make position Tribal at the forefront of this evolution in the
industry.
Tribal's other business area, Education Services (ES), provides
training, inspections, surveys and benchmarking to education
institutions globally. The larger UK and US contracts in ES mostly
continued unaffected by Covid-19 as we continue remote delivery.
The temporary closure of schools, particularly in the Middle East,
has caused delays to the delivery of inspections work until the
schools re-open. We have seen some delays on surveys and
benchmarking with projects delayed to later in the year. Whilst we
have seen revenue decrease in 2021 our profit margins have a degree
of protection as we operate a variable cost model. We expect paused
contracts in the UAE to resume in H2 2021.
As part of this assessment, management have included various
sensitivities to better understand the impact to the business, this
includes but is not limited to, a decrease in revenue, a decrease
in cash receipts and the impact of meeting our covenant
requirements should we draw down on the full available facility.
Management could also introduce cost saving measures to mitigate
the impact on profit and cash if necessary.
Adoption of the going concern basis
In assessing the Company's going concern position and the
Group's ability to provide the necessary financial support, the
Directors have considered all relevant facts and latest forecasts
and assessment of the risks faced by the Group, taking into account
reasonably possible changes in trading performance. Accordingly,
after making enquiries and receiving confirmation of Group support
as set out above, the directors have a reasonable expectation that
the Company has adequate resources to continue in operational
existence for the foreseeable future. Thus, they continue to adopt
the going concern basis in preparing the financial statements.
4. Segmental analysis
Information reported to the Group's Chief Executive for the
purposes of resource allocation and assessment of segment
performance is focused on the nature of each type of activity. The
Group's reportable segments and principal activities under IFRS 8
are detailed below:
Student Information ("SIS") represents the delivery of software
and subsequent maintenance and support services and the activities
through which we deploy and configure our software for our
customers; and
Education Services ("ES") represents inspection and review
services which support the assessment of educational delivery, and
a portfolio of performance improvement tools and services,
including analytics, software solutions, facilities and asset
management.
In accordance with IFRS 8 'Operating Segments' information on
segment assets is not shown as this is not provided to the Chief
Operating decision-maker. Inter-segment sales are charged at
prevailing market prices.
Total Revenue Adjusted segment operating
profit
---------------------------------- --------------------------------------- ---------------------------------------
Six months Six months Year Six months Six months Year
ended ended ended ended ended ended
30 June 30 June 31 December 30 June 30 June 31 December
2021 2020 2020 2021 2020 2020
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP000
---------------------------------- ----------- ----------- ------------- ----------- ----------- -------------
Student Information Systems 31,116 28,973 56,895 11,307 10,546 19,572
Education Services 8,174 9,210 16,059 2,209 2,021 3,326
Total 39,290 38,183 72,954 13,516 12,567 22,898
---------------------------------- ----------- ----------- ------------- ----------- ----------- -------------
Unallocated corporate
expenses (5,709) (6,000) (11,097)
---------------------------------- ----------- ----------- ------------- ----------- ----------- -------------
Adjusted operating profit 7,807 6,567 11,801
Amortisation of IFRS 3 intangibles
(see note 6) (339) (575) (1,021)
Other items (1,649) (923) (1,672)
---------------------------------- ----------- ----------- ------------- ----------- ----------- -------------
Operating profit 5,819 5,038 9,108
---------------------------------- ----------- ----------- ------------- ----------- ----------- -------------
Depreciation and amortisation is allocated to segment profits
and is included in adjusted segment operating profit as above. The
amount included in SIS is GBP0.7m (30 June 2020: GBP0.8m; 31
December 2020 GBP1.4m) and within Education Services GBPnil (30
June 2020: GBP0.1m; 31 December 2020: GBP0.1m).
The accounting policies of the reportable segments are the same
as the Group's accounting policies. Segment profit represents the
profit earned by each segment, without the allocation of central
administration costs, including Directors' salaries, finance costs
and income tax expense. This is the measure reported to the Group's
Chief Executive for the purpose of resource allocation and
assessment of segment performance.
Within Education Services revenues of approximately 4% (31
December 2020: 6%) have arisen from the Segments largest customer:
within SIS revenues of approximately 4% (31 December 2020: 6%) have
arisen from the Segments largest customer.
Geographical information:
Revenue from external customers, based on location of the
customer, are shown below:
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
-------------------- ----------- ----------- -------------
UK 23,117 22,235 42,465
Australia 10,582 10,324 20,724
Other Asia Pacific 2,627 1,655 3,492
North America 1,795 1,606 2,572
Rest of the world 1,169 2,363 3,701
39,290 38,183 72,954
-------------------- ----------- ----------- -------------
5. Other items
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
-------------------------------------------------- ----------- ----------- -------------
Acquisition and other related costs (575) - -
-------------------------------------------------- ----------- ----------- -------------
Changes in fair value of deferred consideration
payable 67 267 814
-------------------------------------------------- ----------- ----------- -------------
Employee related share option charges (including
employer related taxes) (1,126) (575) (1,815)
-------------------------------------------------- ----------- ----------- -------------
-Legacy Defined benefit schemes (15) (64) (123)
-Other legal costs - (77) (36)
-Restructuring and associated costs - (474) (512)
-------------------------------------------------- ----------- ----------- -------------
Other items (15) (615) (671)
-------------------------------------------------- ----------- ----------- -------------
Amortisation of software and customer
contracts and relationships (339) (606) (1,021)
-------------------------------------------------- ----------- ----------- -------------
Total administrative expenses (1,988) (1,529) (2,693)
Other financing costs - (185) (307)
Total other items before tax (1,988) (1,714) (3,000)
-------------------------------------------------- ----------- ----------- -------------
Tax on other items 533 733 1,005
Total other items after tax (1,455) (981) (1,995)
-------------------------------------------------- ----------- ----------- -------------
The Group has adopted a policy of disclosing separately on the
face of its Group income statement the effect of any components of
financial performance considered by the Directors to be not
directly related to the trading business or regarded as
exceptional, or for which separate disclosure would assist in a
better understanding of the financial performance achieved. Both
materiality and the nature and function of the components of income
and expense are considered in deciding upon such presentation. As
such, 'other items' are not part of the Group's underlying trading
activities and include the following:
Acquisition related costs: Amounts relating to the legal and due
diligence costs relating to the acquisition of Semestry Limited in
the period total GBP565,000 (30 June 2020: GBPnil; 31 December
2020: GBPnil) and other merger and acquisition costs. Under IFRS3
these amounts have been expensed as they are not eligible for
capitalisation.
Accounting for changes in the fair valuation of the deferred
consideration payable to the previous owners of Tribal Dynamics
Holdings Limited were measured at relevant reporting dates as part
of the earnout agreement, and the corresponding gain recognised in
the income statement (30 June 2021: GBP67,000; 30 June 2020:
GBP267,000; 31 December 2020: GBP814,000)).
Employee related share option charges. The numbers above
include:
-- share based payments (30 June 2021: GBP671,000; 30 June 2020:
GBP475,000; 31 December 2020: GBP1,375,000) plus foreign exchange
(30 June 2021: GBP20,000); 30 June 2020: GBP(29,000); 31 December
2020: GBP(37,000));
-- the movement in associated employers taxes accrual (30 June
2021: GBP408,000; 30 June 2020: GBP8,000; 31 December 2020:
GBP153,000);
-- the amounts accrued and paid on dividends on share options
that have met performance conditions (30 June 2021: GBP5,000; 30
June 2020: GBPnil; 31 December 2020: GBP195,000). When the Company
declares a cash dividend, some option holders are entitled to a
'dividend equivalent'. This is a payment in cash and/or additional
shares with a value determined by reference to the dividends that
would have been paid on the vested shares in respect of dividend
record dates occurring during the period between the grant of the
Award and the date on which it becomes exercisable; and
-- a nominal value paid to employees as a bonus (30 June 2021:
GBP62,000; 30 June 2020: GBP121,000; 31 December 2020: GBP128,000).
Under Companies Act 2006 rules a nominal value must be paid to
issue new shares, however under the rules of the LTIP and Matching
Shares Schemes the Company will pay the nominal value to the
participants as a bonus.
Other items include:
-- legacy defined benefit schemes relate to the Prudential
Platinum and Federated Pension Funds to which no current Tribal
employee is a member. Costs in 2021 relate solely to top-up fees,
whereas in 2020 they also included administration charges (30 June
2021: GBPnil; 30 June 2020: GBP64,000; 31 December 2020:
GBP123,000).
Amortisation of software and customer contracts and
relationships: Amortisation arising on the fair value of intangible
assets acquired is separately disclosed. (30 June 2021: GBP339,000;
30 June 2020: GBP606,000; 31 December 2020: GBP1,021,000).
Other financing charges: Consistent with the treatment of
movements in deferred consideration, the unwind of the discount on
deferred consideration is separately presented as other financing
costs in the income statement (30 June 2021: GBPnil; 30 June 2020:
GBP185,000; 31 December 2020: GBP307,000).
Taxation: The tax credit arising on the above items is presented
on a consistent basis with the underlying cost or credit to which
it relates and therefore is also presented separately on the face
of the income statement.
During 2021 a review of other items was carried out to identify
the true nature of the components of financial performance. As part
of the review it was decided that pension scheme administration
fees and redundancy costs are now included as part of the Group's
underlying trading activities, unless part of an approved
restructuring programme
6. Finance costs
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
-------------------------------------------- ----------- ----------- -------------
Interest on bank overdrafts and loans 19 46 147
Loan arrangement fees 45 65 65
Net interest payable on retirement benefit
obligations - - 10
Interest expense on lease liabilities 54 65 123
-------------------------------------------- ----------- ----------- -------------
Adjusted Finance costs 118 176 345
-------------------------------------------- ----------- ----------- -------------
Unwinding of discounts - 185 307
-------------------------------------------- ----------- ----------- -------------
Other finance costs - 185 307
Total finance costs 118 361 652
-------------------------------------------- ----------- ----------- -------------
7. Tax
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
------------------------- ----------- ----------- -------------
Current tax
UK Corporation tax - - 67
Overseas tax 1,091 821 1,800
Adjustments in respect
of prior periods (1) - 33
------------------------------ ----------- ----------- -------------
Deferred tax 1,090 821 1,900
Current period 445 86 188
Adjustments in respect
of prior periods (43) - 63
------------------------------ ----------- ----------- -------------
402 86 251
------------------------- ----------- ----------- -------------
Tax charge on profits 1,492 907 2,151
------------------------------ ----------- ----------- -------------
In addition to the amount charged to the income statement a
current tax credit GBPnil (30 June 2020: GBPnil; 31 December 2020:
GBP66,000) and a deferred tax charge of GBP234,000 (30 June 2020:
credit of GBP67,000; 31 December 2020: credit of GBP343,000) has
been recognised directly in equity in relation to share schemes. A
deferred tax credit of GBP57,000 (30 June 2020: GBPnil; 31 December
2020: GBP89,000) has been recognised in the Consolidated Statement
of Comprehensive Income in relation to Defined Benefit pension
schemes.
The Group continues to hold an appropriate corporation tax
provision in relation to the Group relief claimed from Care UK for
the year ended 31 March 2007, together with other appropriate Group
provisions.
Taxes on income in the interim periods are accrued using the tax
rate that would be applicable to expected total annual
earnings.
8. Earnings per share
Earnings per share and diluted earnings per share are calculated
by reference to a weighted average of ordinary shares calculated as
follows:
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2021 2020 2020
Thousands thousands thousands
----------------------------------------------- ----------- ----------- -------------
Basic weighted average number of shares
in issue 206,362 203,109 203,986
Weighted average number of Employee share
options 4,530 1,152 4,230
----------------------------------------------- ----------- ----------- -------------
Weighted average number of shares outstanding
for dilution calculations 210,892 204,261 208,216
----------------------------------------------- ----------- ----------- -------------
Diluted earnings per share only reflects the dilutive effect of
share options for which performance criteria have been met.
The maximum number of potentially dilutive shares, based on
options that have been granted but have not yet met vesting
criteria, is 8,827,863 (31 December 2020: 12,796,406). This
includes 962,261 options in the 2019 SAYE Scheme (31 December 2020:
GBP1,028,396).
The adjusted basic and diluted earnings per share figures shown
on the condensed consolidated income statement are included as the
directors believe that they provide a better understanding of the
underlying trading performance of the Group.
A reconciliation of how these figures are calculated is set out
below.
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
-------------------------------- ----------- ----------- -------------
Net profit 4,426 3,778 6,358
-------------------------------- ----------- ----------- -------------
Earnings per share
Basic 2.1p 1.9p 3.1p
Diluted 2.1p 1.9p 3.1p
-------------------------------- ----------- ----------- -------------
Other items after tax (note 5) 1,445 981 1,995
Earnings per share
Basic (0.8)p (0.4)p (1.0)p
Diluted (0.7)p (0.4)p (0.9)p
-------------------------------- ----------- ----------- -------------
Adjusted Net profit 5,881 4,759 8,353
Adjusted earnings per share
Basic 2.9p 2.3p 4.1p
Diluted 2.8p 2.3p 4.0p
-------------------------------- ----------- ----------- -------------
9. Goodwill
GBP'000
------------------------------- --------
Cost
At 1 January 2021 107,892
Acquisitions (see note 14) 5,100
Exchange differences (485)
------------------------------- --------
At 30 June 2021 112,507
------------------------------- --------
Accumulated impairment losses
At 1 January 2021 81,231
At 30 June 2021 81,231
------------------------------- --------
Net book value
At 30 June 2021 31,276
------------------------------- --------
At 31 December 2020 26,661
------------------------------- --------
The Group tests annually for impairment, or more frequently if
there are indicators that goodwill could be impaired. At the half
year, a review has been undertaken to ascertain if any indicators
have arisen of potential impairments. Based on the review
performed, no impairment indicators that would require an
impairment review have been noted.
10. Other intangible assets
Customer
contracts Acquired
and intellectual Development Business Software
Software relationships property costs systems licences Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------- --------- --------------- --------------- ------------ --------- ---------- ---------
Cost
At 1 January 2021 10,293 8,620 1,873 43,619 5,319 1,489 71,213
On acquisition
of subsidiary - - - 1,262 - - 1,262
Additions - - - 4,680 601 - 5,281
Exchange differences (286) (122) - (127) (4) - (539)
---------------------- --------- --------------- --------------- ------------ --------- ---------- ---------
At 30 June 2021 10,007 8,498 1,873 49,434 5,916 1,489 77,217
---------------------- --------- --------------- --------------- ------------ --------- ---------- ---------
Amortisation
At 1 January 2021 8,141 6,299 734 25,255 4,920 1,488 46,837
On acquisition
of subsidiary - - - 392 - - 392
Charge for the
period 170 169 38 482 13 - 872
Exchange differences (286) (86) - (122) (4) - (498)
At 30 June 2021 8,025 6,382 772 26,007 4,929 1,488 47,603
---------------------- --------- --------------- --------------- ------------ --------- ---------- ---------
Carrying amount
At 30 June 2021 1,982 2,116 1,101 23,427 987 1 29,614
---------------------- --------- --------------- --------------- ------------ --------- ---------- ---------
At 31 December
2020 2,152 2,321 1,139 18,364 399 1 24,376
---------------------- --------- --------------- --------------- ------------ --------- ---------- ---------
Software and customer contract and relationships have arisen
from acquisitions, and are amortised over their estimated useful
lives, which are 3-8 years and 3-12 years respectively. The
amortisation period for development costs incurred on the Group's
product development is 5 to 15 years, based on the expected
life-cycle of the product. Amortisation of development costs is
included within cost of sales; the amortisation for software,
customer contracts and relationships and business systems is
included within administrative expenses.
11. Trade and other receivables
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
--------------------------------------------- --------- --------- ------------
Amounts receivable for the sale of services 8,259 7,767 7,701
Less: loss allowance (109) (121) (231)
--------------------------------------------- --------- --------- ------------
8,150 7,646 7,470
Other receivables 709 358 413
Prepayments 4,109 2,748 3,153
--------------------------------------------- --------- --------- ------------
12,968 10,752 11,036
--------------------------------------------- --------- --------- ------------
12. Trade and other payables
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
--------------------------------------- --------- --------- ------------
Current
Trade payables 777 812 892
Other taxation and social security 3,029 2,081 2,522
Other payables 1,577 1,629 1,246
Deferred contingent consideration 1,476 - -
Deferred non-contingent consideration - 1,818 1,392
--------------------------------------- --------- --------- ------------
6,859 6,340 6,052
--------------------------------------- --------- --------- ------------
Non-current
--------------------------------------- --------- --------- ------------
Other payables 182 30 40
182 30 40
--------------------------------------- --------- --------- ------------
Total 7,041 6,370 6,092
--------------------------------------- --------- --------- ------------
13. Provisions
Property
related Other Total
GBP'000 GBP'000 GBP'000
-------------------------------------- --------- ---------- ----------
At 1 January 2021 1,030 158 1,188
Increase in provision 12 2 14
On acquisition of subsidiary 15 - 15
Utilisation of provision (65) - (65)
Exchange rate movement (13) (4) (17)
-------------------------------------- --------- ---------- ----------
At 30 June 2021 979 156 1,135
-------------------------------------- --------- ---------- ----------
The provisions are split as follows:
-------------------------------------- --------- ---------- ----------
Property
related Other Total
GBP'000 GBP'000 GBP'000
-------------------------------------- --------- ---------- ----------
Within one year 47 156 203
More than one year 932 - 932
Total 979 156 1,135
-------------------------------------- --------- ---------- ----------
Provisions are recognised when the Group has a present
obligation as a result of a past event, and it is probable that the
Group will be required to settle the obligation. Provisions are
measured at the Directors' best estimate of the expenditure
required to settle the obligation at the balance sheet date, and
are discounted to present value where the effect is material.
Property related provision relates to the dilapidation costs
arising from exiting leasehold properties, under IAS 37.
Other provision relates to the recoverability of input VAT in
the Philippines.
14. Acquisition of subsidiary
On 31 March 2021, the Group acquired 71.25% of the issued share
capital of Semestry Limited (Semestry), a company incorporated in
the UK that is a leading supplier of cloud based scheduling and
timetabling software to the higher education market. On 4 May 2021,
the Group acquired the remaining 28.75 %.
This transaction has been accounted for by the acquisition
method of accounting. This comprises an initial cash consideration
of GBP4.5m and a deferred contingent cash consideration of GBP1.5m
which is payable on the annual recurring revenue (ARR) growth of
the acquired business. Deferred contingent consideration that is
expected to be satisfied in FY21.
Due to the timing of the acquisition, the acquisition accounting
adjustments were not complete as at 30 June 2021, however, will be
finalised prior to 31 December 2021.
The provisional carrying amount of each class of Semestry
Limited's assets before combination is set out below:
Fair value Provisional
Book value adjustments fair value
GBP'000 GBP'000 GBP'000
----------------------------------- ----------- ------------- ------------
Intangible assets 899 (29) 870
Tangible assets 14 (14) -
Trade and other receivables 357 48 405
Cash and cash equivalents 317 - 317
Trade and other payables (640) (52) (692)
Net assets acquired 947 (47) 900
Goodwill arising on acquisition
(note 10) 5,100
------------------------------------ ----------- ------------- ------------
Consideration
Satisfied by:
Initial cash consideration 4,524
Deferred contingent consideration 1,476
------------------------------------ ----------- ------------- ------------
6,000
----------------------------------- ----------- ------------- ------------
The initial cash consideration paid to Semestry was satisfied
through existing cash balances.
Semestry Limited contributed revenue of GBP0.3m and operating
profit of GBP0.1m to the Group for the period between the date of
acquisition and the balance sheet date. Acquisition related costs
amounted to GBP0.6m.
Had the acquisition occurred on 1 January 2021, the Group's
revenue would have increased by GBP0.3m and its operating profit
increased by GBP0.1m.
15. Share capital
Six months Six months Six months Six months Year
ended ended ended ended ended Year ended
30 June 30 June 30 June 30 June 31 December 31 December
2021 2021 2020 2020 2020 2020
number GBP'000 number GBP'000 number GBP'000
---------------------- ------------ ----------- ------------ ----------- ------------- --------------
Allotted, called
up and fully paid
At beginning of
the period 205,698,309 10,285 199,579,784 9,979 199,579,784 9,979
Issued during the
period 3,872,410 194 6,118,525 306 6,118,525 306
At end of the period 209,570,719 10,479 205,698,309 10,285 205,698,309 10,285
---------------------- ------------ ----------- ------------ ----------- ------------- --------------
The Company has one class of ordinary shares of 5p which carry
no right to fixed income.
The shares issued during the period were in order to satisfy
exercises of share-based payment schemes. 3,872,410 shares were
issued between January and June 2021. The exercise costs of 5p per
share resulted in cash receipts of GBP2.6m.
16. Notes to the cash flow statement
Six months Six months Year
ended ended ended
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
------------------------------------------------ --------------- --------------- -----------------
Operating profit from continuing operations 5,819 5,038 9,108
Depreciation of property, plant and
equipment 345 360 734
Depreciation of right-of-use assets 478 523 1,059
Amortisation and impairment of other
intangible assets 872 1,297 2,289
Share based payments 650 446 1,339
Movement in deferred consideration (67) (267) (815)
Research and development tax credit (81) (100) (214)
Net pension credit - - (30)
Other non-cash items 696 866 552
Operating cash flows before movements
in working capital 8,712 8,163 14,022
(Increase)/decrease in receivables (3,417) 687 (255)
Decrease in payables (180) (12,507) (7,461)
------------------------------------------------ --------------- --------------- -----------------
Net cash from/(used in) operating activities
before tax 5,115 (3,657) 6,306
Net tax paid (1,121) (147) (845)
------------------------------------------------ --------------- --------------- -----------------
Net cash from/(used in) operating activities 3,994 (3,804) 5,461
------------------------------------------------ --------------- --------------- -----------------
Net cash from/(used in) operating activities
before tax can be analysed as follows:
Continuing operations 5,115 (3,657) 6,306
------------------------------------------------ --------------- --------------- -----------------
Analysis of net cash
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
--------------------------- --------- --------- ------------
Cash and cash equivalents 6,791 16,739 9,520
Borrowings (2,500) (10,000) -
--------------------------- --------- --------- ------------
Net cash 4,291 6,739 9,520
--------------------------- --------- --------- ------------
Analysis of changes in net cash
------------------------------------------------------------------------------
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
------------------------------------------ --------- --------- ------------
Opening net cash 9,520 16,463 16,463
Increase in bank loans (2,500) (10,000) -
Net (decrease)/increase in cash and cash
equivalents (2,452) 742 (6,976)
Effect of foreign exchange rate changes (277) (466) 33
------------------------------------------ --------- --------- ------------
Closing net cash 4,291 6,739 9,520
------------------------------------------ --------- --------- ------------
17. Contingent liabilities
From time to time the Group is subject to potential litigation
claims. On the basis of legal advice, claims are being robustly
contested as to both liability and quantum. A provision of GBPnil
(30 June 2020: GBP0.1m, 31 December 2020: GBPnil) has been made for
defending these claims, where appropriate.
The Company and its subsidiaries have provided performance
guarantees issued by their banks on their behalf, in the ordinary
course of business totalling GBP0.8m (30 June 2020: GBP1.7m, 31
December 2020: GBP0.1m). These are not expected to result in any
material financial loss.
18. Related party disclosures
Transactions between the Company and its subsidiaries, which are
related parties, have been eliminated on consolidation and are not
disclosed in this note.
The remuneration of the key management personnel of the Group is
set out below in aggregate for each of the categories specified in
IAS 24 'Related Party Disclosures'. The members of the Group Board
and the Group's Executive Board are considered to be the key
management personnel of the Group.
30 June 30 June 31 December
2021 2020 2020
GBP'000 GBP'000 GBP'000
------------------------------ --------- --------- ------------
Short-term employee benefits 745 874 2,874
Termination benefits 26 - 70
Share-based payments 494 521 901
------------------------------ --------- --------- ------------
1,265 1,395 3,845
------------------------------ --------- --------- ------------
19. Seasonality
The overall performance for the second half of the year will be
lower than for the first half as a result of historical trends of
the phasing of delivery of work across both SIS and Education
Services.
Responsibility statement
The Directors' confirm that these condensed interim financial
statements have been prepared in accordance with the Disclosure and
Transparency Rules (DTR) of the Financial Services Authority and
that the interim management report includes a fair review of the
information required by DTR 4.2.7 and DTR 4.2.8, namely:
-- An indication of important events that have occurred during
the first six months and their impact on the condensed set of
financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year;
and
-- Material related-party transactions in the first six months
and any material changes in the related-party transactions
described in the last annual report
The Directors of Tribal Group plc are listed in the Tribal Group
plc Report and accounts for the 12 month period ended 31 December
2020. A list of current Directors is maintained on the Tribal Group
plc website: www.tribalgroup.com .
The Directors are responsible for the maintenance and the
integrity of the Group's website. Legislation in the United Kingdom
governing the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
By order of the Board
Mark Pickett
Chief Executive
12 August 2021
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END
IR UAVBRAKUWAAR
(END) Dow Jones Newswires
August 12, 2021 02:00 ET (06:00 GMT)
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