A Bristol education software firm has seen its profits rise by 21% during the first half of the year.
In its interim results Tribal recorded its operating profit in the first six months of 2023 rise to £8.1m while revenues rose 1.5% to £43.4m.
The company said that it had 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. Tribal recorded an annual recurring revenue (ARR) of £51.9m, an increase of 2.8% since year end, with its Cloud services seeing the largest growth of 21% to £5m.
However, a contact with Nanyang Technology University (NTU) was terminated in March. The firm said commercial discussions are underway with NTU, but the outcome remains "uncertain".
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There has been "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. Bosses at Tribal said the board is continuing to consider the "strategic options and opportunities" for the ES business, which grew at at 36.7%, to £9.7m following sales to the 海角视频 and Middle East in the previous year.
The firm added that it continues to invest in its offering, people and operations with the aim of capitalising on the growing activity within the education market, including a £4.6m investment in Edge product development.
Tribal said adjusted EBITDA of £8.1m reflected a £1m one off, net positive impact from the NTU onerous contract provision release offset by associated costs.
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Bosses said that the firm 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.”
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