The Tribal Group Board are proposing an annual dividend of 0.65p per share (2021:1.3p per share) expected to be paid at the end of July 2023
Other financial highlights include:
As announced in the Group's Trading Update on 23 February 2023, the Group's trading performance for 2022 has been significantly impacted by implementation delays on the Nanyang Technological University ("NTU") contract, due to changing scope and complexity, resulting in substantially increased ongoing costs and lower recognisable revenue
The underlying business remains strong, with Group revenue increasing 2% to £83.6m (2021: £82.2m constant currency), following a strong performance across Cloud and Edge offerings and School Inspection Services; offsetting lower recognisable revenue from NTU
Annual Recurring Revenue (ARR) remained flat at £51.2m (2021: £51.2m at constant currency), reflecting a 10% growth in the Group's strategic products, offset by declining revenues as anticipated, from Tribal's non-core historic and schools' systems contracts
Education Services business "ES" performed well, with revenue increasing 9% to £15.4m (2021: £14.2m constant currency) and operating margin increasing by 10.1pp to 25% (2021: 15% constant currency)
Group adjusted EBITDA of £7.4m (2021: £16.8m constant currency) reflects operating losses relating to the NTU contract and an onerous contract provision of £4.5m for future losses. Without the impact of NTU, margins would have been consistent with historic levels
Statutory Profit before tax for the year decreased to £0.4m (2021: £8.6m constant currency)
Adjusted operating cash conversion of 89% (2021: 104%) and negative free cash flow of £5.3m (2021: £5.4m positive), reflecting the impact of the NTU contract, resulting in net debt of £3.4m
