Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
magazineGreat Ideas update: Tribal
Tribal (TRB:AIM) 56.75p
Gain to date: 20.1%
Previous Shares view: 47.25p, 19 May 2016
Tribal (TRB:AIM) chief executive Ian Bowles says the business is capable of delivering operating margins in excess of 20% after a turnaround is complete.
Tribal struggled with lumpy revenue flow and problem contracts during 2015 – culminating in a profit warning and dilutive equity raise.
In a bullish assessment of the education support services business’ prospects after taking the reins early this year, Bowles said key performance indicators during his tenure would focus around staff and customer retention as well as margins.
‘I am encouraging shareholders to think 20% margins at a group level which will be a good achievement from where we started,’ said Bowles.
But I would not see it ending there because good software companies can earn more than that.’
Tribal delivered adjusted operating profit of £2.9m on revenue of £107m in 2015 for a 2.7% margin. (WC)
Bowles’ targets are a long way off but promise great returns if they can be delivered.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
