Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Tribal Group – hopefully our prior warning that “No earnings visibility + debt = toxic” was heeded as…

By Steve Moore

14 December 2015 05:03

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Even on a 19th October profit warning seeing shares in software and services for education management group Tribal (TRB) down more than 35% at sub 80p, I concluded that the shares still looked to be one for the bargepole as no earnings visibility + debt (£23.1 million on the half year stage balance sheet) = toxic; see HERE. A further announcement today entitled “Trading Update, Rights Issue and Move to AIM” sees the shares currently down a further 25p at below 30p…

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Comments

Shamus

7 March 2016, 16:57

News gets worse.
Tribal Group is now selling off profitable parts of the business which had a big future upside (Synergy); Lost it’s bid for Lincoln University (worth GBP 3 million) and University of British Columbia (Canada) has just announced on their website they are going back out to market after completing a pilot implementation and a full design and verification with Tribal. Add to that the troubles in Australia with the NSW TAFE rollout and SALM plus Sydney University now running for 6 years to implement – all rather ugly.
That’s a lot of future cash flow that the Group would have been hoping for since the loss of the UK govt contracts from Sept 2015. Definitely barge pole.