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Tribal revenues up 11%

publication date: Mar 31, 2008
author/source: Ed Tranham

Tribal’s 2007 revenues grew 11% to £153.3 in the nine months to 31 December, following a change to the company’s year end. Profit before tax was up 39% to £11.1m on a like for like basis in 2007. On a 12 month basis revenues increased 8% to £209.2m.

Tribal works across the education sector providing a range of services including school inspections, professional development, ICT, publishing and recruitment. These education businesses (40% of Tribal’s total revenues) saw an increase in revenue of 9.2% to £61.8m (£83.9m over 12 months) during the nine month period ended 31 December 2007. Operating profit was 14% higher at £8.6m and operating margins improved to 14%.

During 2007 the company’s learning and publishing business launched new training products for handheld computers. Tribal has also developed under contract the government's 'English for Life and Work' portal. Other contract wins include the National Strategy for improving adult numeracy. In the BSF sphere Tribal has contracts as a provider of education services in Southwark, Rochdale, Kirklees and Blackburn & Darwen.

The company is currently bidding for the next stage of the Home Office offender learning programme, which is worth up to £20m a year over a five year period.

Tribal also believes it is in a strong position to secure its existing Ofsted contracts from next September and believes that further outsourcing by Ofsted will increase the size of the current market.

To date many of the education businesses within Tribal have been operated separately. The challenge for Tribal’s management is to decide how best to pull these businesses together to extract higher margins and further organic growth without affecting the ability of each business to respond quickly to market changes.

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