Profits rise by 21 per cent at Bristol education software firm

A firm which specialises in software for schools and colleges saw profits increase by 21 per cent over the first six months of the year.

Bristol-based Tribal saw operating profit in the first six months rise to £8.1m while revenues stayed flat at £43.4m.

The company said it continued to see a good sales performance, with one new SITS:Vision logo customer and three further cloud contracts from existing customers, University of Wolverhampton, University of the Arts London, and Royal Veterinary College.

As previously announced, the contract with Nanyang Technology University “NTU” was terminated in March. Commercial discussions are underway with NTU, but the potential outcome is uncertain.

There was a strong performance from the Education Services (ES) business, continuing its post-pandemic growth under new leadership, including additional work with NCETM and a number of US school districts. The voard is continuing to consider the strategic options and opportunities for the ES business.

There has been continued investment into Tribal’s offering, people, and operations, to capitalise on the growing activity within the education market, including £4.6m investment in Edge product development.

The adjusted EBITDA of £8.1m reflected a £1m one off, net positive impact from the NTU onerous contract provision release offset by associated costs.

The group said it is currently trading in line with board expectations.

While management is focused on a negotiated settlement with NTU, the timing of any resolution remains uncertain and in the meantime progress is being made within the core business and focus continues on carefully managed investment.

Mark Pickett, Tribal’s chief executive, said: “We continued to trade positively, transitioning our existing customers to the cloud while securing new customers in our key geographies. Education Services performed well during the first half, and we expect this trend to continue.

“Overall, the picture for Tribal remains positive, with an expanding customer base, advanced service offering and continued contract and ARR momentum.”