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Tribal Group PLC on Tuesday reported a fall in half-year profit on higher costs and reduced margins.
Pretax profit in the six months to June 30 fell 47% to £3.1 million from £5.9 million a year ago. Revenue rose 7.9% to £42.4 million from £39.3 million.
Cost of sales widened 26% to £22.8 million from £18.1 million a year ago. Administrative expenses grew 7.2% to £16.4 million from £15.3 million.
Its adjusted operating margin weakened to 16.7% from 23.3% a year before. Adjusted operating profit fell by 23% to £7.1 million from £9.2 million.
However, Tribal touted a growing customer base and advanced service offering, as well as continued contract and annual recurring revenue momentum.
The Bristol-based education software and services firm added that it is confident in delivering results for 2022 that are in line with current expectations of its board. It cautioned that margin recovery in the second half depends on milestone payments on a contract from Nanyang Technological University in Singapore.
Regarding dividends for 2022, the firm said ‘it is Tribal's expectation that a final dividend will be paid following the release of annual results in line with its dividend policy.’
Tribal shares were 6.0% lower at 81.76 pence each in London on Tuesday morning.
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