Tribal, an education technology business headquartered in Bristol, is optimistic about “sustained growth” in 2025, despite facing market challenges. The AIM-listed software company announced solid financial results for the year ending December 31, 2024.
Group revenue saw a 6% increase, reaching £90 million. Moreover, adjusted EBITDA, a key performance indicator, rose by 17.8% to £16.7 million. However, statutory profit before tax decreased slightly to £5.9 million, down from £6.4 million in 2023, due to increased exceptional costs. The company also reported a significant improvement in its net debt position, which decreased to £3.2 million from £7.2 million the previous year.
Mark Pickett, Tribal’s Chief Executive, called the company’s performance “a milestone” in its transformation towards a software-as-a-service (SaaS) model. He noted, “With strong, long-term customer relationships and increasing cloud adoption, we are set for sustained growth in our core business. Despite market challenges, we delivered revenue and EBITDA higher than expectations, significantly reduced debt, and saw impressive ARR growth. Looking ahead, we are focused on optimising our operations and driving continued growth and increasing cash flow generation.”
Tribal expressed confidence in achieving results in line with the board’s expectations for the upcoming fiscal year, FY25. The company has proposed an annual dividend of 0.65p per share, with a payment date expected at the end of July. The total dividend for FY24 is projected to be 1.3p per share, considering the interim dividend of 0.65p per share paid in November 2024.
The company also highlighted its “continued focus” on operational efficiency and organizational structure to support its SaaS goals. To support group profit margins during the transition, Tribal implemented a cost reduction program in 2024, reducing full-time equivalent headcount in SIS by 59, representing a 9.1% year-on-year reduction.
