Tribal Group stock up as revenue and earnings slide

Tribal Group published its half-year report for the six months to 30 June on Thursday, with revenue dropping 22% to £45.2m.

The AIM-traded firm said its adjusted operating profit was £0.5m for the period, down 81% year-on-year, though its statutory loss after tax improved 59% to £2.6m, from £6.4m.

Operating cash flow turned around to £4.6m, from a £3.2m cash burn in the first half of 2015, and the company had net cash of £5.7m at period end, compared to net debt of £23.1m a year ago.

“I am pleased to report that the first half of the year has seen progress in line with the board's expectations, as we take actions to address the financial and operational challenges the group faced at the beginning of the year,” said chief executive Ian Bowles.

“As previously highlighted, our profits in 2016 are weighted towards the second half of the year, as we see the H1 cost saving actions flowing through, improved utilisation in the Implementation teams, and seasonal skewing of results in Professional and Business Solutions.

“Our expectations for the full year are unchanged,” he confirmed.

At 1517 BST, shares in Tribal Group were up 0.09% at 55.55p.