H1 results are very encouraging, as notwithstanding some end-market challenges, current trading has been robust (H1 sales +2%, AOP +18% y/y) meanwhile Tribal is making strong strategic progress, as by migrating customers onto its new subscription licence model, its longterm prospects have never been better. Reflecting this optimism (and a strong start to H2) we upgrade FY25e & ‘26e AOP by +9% and FY26e FCF by +16% to £7.4m, ~7% yield, at the current price. This looks far too generous for an IP backed, market leading SaaS business, which is achieving encouraging u/l growth, that is also flowing through to profit and cash.
