EBITDA and net debt show material y/y improvement and are better than expected at £16.7m and £-3.2m respectively - driven by the higher margin SIS business, lower central overheads and strong cash collection. This represents strong financial progress and also reflects well on TRB’s growth strategy and its transition to become a pureplay Edtech, SaaS business. As such, while we recognise that short-term forecasts lack excitement, we remain of the view that Tribal remains an attractive and valuable asset, thanks to its industry leading position, entrenched customer relationships and mission critical software. What’s more we also see the business capable of generating strong FCF margins. However, by trading on just 1x revenue, it would appear that the market is overlooking this potential. Patient capital anyone?
