Tribal Group slashes divi

Education support services firm Tribal Group slashed its dividend payment by 60 per cent as it posted a 39.3 per cent increase in adjusted pre-tax profit.

The group, which completed its restructuring following the disposal of non-core activities and a cost reduction programme, said adjusted pre-tax profit rose to £9.5m for the year ended 31 December 2011 from £6.8m a year before.

Tribal posted a pre-tax profit of £3.7m compared to a loss of £0.4m a year earlier. Revenue for the year rose to £108.2m from £104.1m on increased demand for its student management software in the UK, Australia and New Zealand.

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Analysts had forecast annual pre-tax profit of £8.52m and revenue of £112.5m.

Commenting on the trading environment chief executive Keith Evans said, "Whilst the macro-economic environment has been uncertain during 2011, our products and services demonstrated resilience in mixed market conditions."

He added, "Our current trading is in line with our expectations for 2012...we anticipate our profits will be weighted towards the second half of the year, and Tribal has good potential to make further progress over the medium term."

Tribal said it now has a simplified two-division structure established, focusing on its core education, learning and training markets.

A dividend of 1p has been recommended, down from 2.5p the previous year.

cj