Tribal Group’s interim management statement (IMS) covering the period from 30th June 2012 is “in line with expectations” but indicates that diversity in the performance of its two businesses – technology and services – remains (see Tribal – contrasting divisional performances).
The Group, which focuses entirely on the provision of technology products and services for the education, learning and training markets, appears to still be finding it tough going for the UK services business highlighting a quiet domestic procurement market. While there is reference to emerging opportunities internationally for this part of the business, it will struggle to make up for any issues in the domestic market, as the international business is such a small proportion of the mix. Meanwhile, the rosier picture in the technology business continues with a healthy level of opportunities highlighted in both the UK and internationally.
The order book is described as strong but has reduced slightly since the H1 results – it now stands at £175m (down from £180.5m). Tribal refers to “an encouraging level of opportunities” for 2013.
It is still early days in terms of the Group’s three year plan (set out at the beginning of the year). Nonetheless, better financial management is improving cash flow and continues to have a knock-on positive impact on net debt.