Tribal Group halves final dividend as contract delays weigh on profits

Tribal Group said its underlying business had remained strong throughout 2022, with group revenues growing 2% to £83.6m following a solid performance across its Cloud and Edge offerings. Annual recurring revenue remained flat at £51.2m.

The AIM-listed group stated this had somewhat offset significant impacts stemming from the implementation delays on its contract with Nanyang Technological University, due to changing scope and complexity and resulting in "substantially increased" ongoing costs and lower recognisable revenues.

However, group adjusted underlying earnings tumbled from £16.8m to £7.4m, reflecting operating losses relating to the NTU contract and an onerous contract provision of £4.5m for future losses. Statutory Profit pre-tax profits for the year decreased to £400,000 from £8.6m a year earlier.

Chief executive Mark Pickett said: "Based on the performance in the year and having reviewed the group's cash flow forecasts, specifically with regard to the significant uncertainties around the resolution of the NTU contract, the board have concluded that it would be prudent to reduce the final dividend by 50%. It is the board's intention to return to its former policy of dividend progression when circumstances allow."

As of 0935 GMT, Tribal shares were untraded at 37.60p.

Reporting by Iain Gilbert at Sharecast.com