Shares in Tribal Group PLC (AIM:TRB) rose 13% in early trading after the education software provider reported results ahead of market expectations for 2024.
Strong demand for its cloud-based Student Information Systems drove revenue and earnings growth, offsetting weaker performance in its education consultancy division.
The company expects to report adjusted earnings significantly above forecasts, with revenue also ahead of expectations. Annual recurring revenue from its core business grew 9% to £54.8 million, helping to reduce net debt to £3.2 million from £7.2 million the previous year.
Tribal will recognise a £1.4 million impairment on its Data Engine product but says this will not impact cash flow.
Looking ahead, the company anticipates further recurring revenue growth in 2025 despite challenges in its non-core business and rising costs.
In early trading, the stock was up 5.2p 44.2p.