Tribal earnings 'materially ahead' of expectations

Education software provider Tribal saw its strong first-half performance spill over into the second and now expects full-year earnings to be "materially ahead of expectations".

Tribal warned that revenues would be lower than last year but the firm's significantly improved operating margins as a result of improved operating efficiency and good cost control helped it carve out the earnings beat.

The AIM-listed outfit reported good sales momentum during the year - winning four new universities in the UK higher education sector and a number of larger further education colleges.

Tribal also successfully strengthened its balance sheet throughout the year and was debt free as of 31 December. The group reported a 41% increase in net cash to £20m.

A dispute with a platform software supplier over historic royalty payments "may potentially lead to a material claim", which it would "vigorously defend it".

Acting chief executive Mark Pickett, in place since Ian Bowles suddenly passed away in August, said: "I am pleased with the improved profit performance for the year. Tribal has won significant new customers in a competitive market and has a good pipeline of future opportunities."

"I look forward to continued momentum in 2019 and the years beyond."

As of 0900 GMT, Tribal shares had picked up 2.36% to 78.51p.