Business
Interim Results - Amendment
Interim Results - Amendment.
About this update from Tribal Group Plc
[{"type":"text","content":"\n Tribal Group PLC\n28 November 2006\n\n28 November 2006\n\n\nThis announcement replaces that made at 7am today. There was an error on the \ngross profit figure in the accounts section due to a formatting error.\n \nTribal Group plc\n\nUnaudited interim results for the six months ended 30 September 2006.\n\n\nHighlights\n\n • Adjusted profit before tax* at £3.1m\n\n • Interim dividend unchanged at 1.05p\n\n • Cash conversion 83 per cent\n\n • Solid performance from education and technology\n\n • Weaker demand in consulting services, revenues down 15%\n\n • Excellent progress from Mercury Health - preferred bidder on circa £160m\n NHS diagnostic contract\n\n • Demerger of Mercury Health announced\n\n\nStrone Macpherson, Chairman of Tribal Group plc commented:\n\n\n'As anticipated, this has been a challenging period for the Group, with results\nimpacted by softer demand in some of our public sector markets which has led to\nweaker demand in consultancy services. Performance has, however, been good in\neducation and technology and in Mercury Health.\n\nOverall, we expect to see a stronger performance in the second half, with a more\npronounced second half weighting than our traditional trading pattern. However,\nwe anticipate that the full year results will be significantly impacted by a\ncombination of our slow start to the year and the likely continuation of\ndifficult trading in specific markets.\n\nIn response to the 15 per cent fall in revenues in consulting services and as\npart of our continuing drive to improve margins, action has been taken to reduce\nour cost base through headcount reduction and by exiting poorly performing\nbusiness areas. We are also improving the efficiency of our business by\ncentralising supplier procurement and IT systems, rationalising our property\nportfolio and investing in a new financial reporting and job costing system.\nThese should bring some benefits this year but more significant savings in \n2007/8.\n\nFollowing the announcement on 18 October, your board has now decided, in\nprinciple, to proceed with the demerger of Mercury Health. This demerger should\nenable Mercury to maximise its potential as an independent listed company and\nallow the remainder of the Group to focus on developing its core consultancy and\nsupport services offering. The business is expected to be li...