Source - SMW
Education software group Tribal has reported a decline of 3.9% in revenue as operating profit climbed 5.9% following its rapid response to the pandemic, including cost saving measures implemented early to mitigate the impact of COVID-19 on trading margin and cash.

The group saw revenue decrease 3.9% to £38.2m on a constant currency basis in the six months to 30 June 2020, with its education services down 17.2%, largely due to the impact of COVID-19.

Annual recurring revenue increased 3.3% at the end of the period to £43.2m, while adjusted operating profit was 5.9% higher at £8.1m.

Statutory profit after tax rose 4.3% to £3.8m in the first half of the year.

Tribal confirmed its annual dividend payment will resume for the full-year 2020.

It confirmed that only on-site school inspections work in the Middle East and US remain paused.

During the period, it won new SITS customers in Australia, and a new Dynamics CRM customer in further education.

Chief executive Mark Pickett said: 'Overall our first-half performance was better than expected, benefiting from significant cost mitigations which will not continue at the same level in the second half; I would also note that the account management and general project work is slowing as customers assess the impact of Covid-19.'

He added: 'Despite this, the outlook for the full year is expected to be slightly ahead of current market expectations for revenue and adjusted EBITDA, and ahead for adjusted EBITA.' 

At 9:31am: (LON:TRB) Tribal Group PLC share price was +8.5p at 65.5p

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