Strong performance prompts upgrades
Tribal Group’s trading update for FY13 is positive, with strong trading in Q4 resulting in guidance that adjusted PBT and EPS for the year will be better than previous expectations. Emphasising the strength of the existing business, this outperformance looks particularly impressive given that it has been achieved without news of further major contract wins in the second half. Both the Systems and Solutions businesses have made good progress. The Group continues to invest in international markets where it is seeing strong demand for its education management systems with increasing opportunities for Solutions as well. The outlook statement is positive and notes confidence in future revenues. We are increasing estimates for both Adjusted PBT and EPS by c.5% for FY13, and we upgrade our FY14 and FY15 Adjusted EPS numbers by 3% in each year.