Tribal Group PLC (AIM:TRB) shares plummeted after it warned about rising costs and lower revenues amidst changes and delays to its contract with Nanyang Technology University (NTU).
The education technology company, in a statement, told investors that losses related to the NTU contract would amount to £12mln over its life.
It said: “Commercial discussions are ongoing with NTU to determine the level of additional revenue due to Tribal in relation to these scope changes and resultant delays to delivery and implementation. These discussions are unlikely to be resolved this financial year.”
Tribal noted that underlying earnings (EBITDA) for the 2022 financial year will take a £9mln hit, despite the group achieving revenue in line with board expectations.
In London, Tribal shares were down 18% ahead of Thursday’s close.