The Bristol-based company has won two contracts in the UAE and Australia, with shares slightly up as a result.
Companies: Tribal Group plc
Educational support company Tribal Group (LON: TRB) has announced today it has won two contracts: one with the Abu Dhabi Educational Council (ADEC); and the second with the Callista Senior Executive Group (CSEG) in Australia. The contracts are worth £8.5m over 2 years and £16.8m over 4 years respectively.
The market acknowledged the news with shares up 3% off the back of the announcement.
The first contract was awarded by ADEC for the inspection of schools in Abu Dhabi. The contract expands Tribal's schools' inspection business in the UAE and makes Tribal the sole supplier of school reviews in Abu Dhabi.
The second contract was awarded by CSEG to extend its support and development of the Callista product for higher education customers in Australia.
Singers have today released a note regarding the news, saying:
"We make no changes to our forecasts as these have been factored into 2017 and beyond, but together with the reassuring trading update at the end of July, indicated a period of continued positive momentum for Tribal."
Share prices in Tribal Group have fluctuated in the 5 years to 2016, following the pattern of Group revenues which grew to 2014, after which they fell and continue to fall, with consensus estimating a decline in revenue of £7m for 2017.
Despite this, consensus is forecasting a Net Profit of £5m in 2017 after operating at a loss for the three years prior. Currently, Tribal trade at a forecast 2017 PE ratio of 27x, a significant premium versus the industry median of 14x.
