Shares in Tribal Group PLC (AIM:TRB) rose 22% on Tuesday after the education software provider said it expected full-year results to come in ahead of forecasts, supported by new contracts and stronger recurring revenues.
The company reported that since the end of June it had secured an additional £4 million of business, including major student information system deals with London South Bank University and Durham University.
A further 34 existing customers adopted its Higher Education Full-Service subscription, which would lift annual recurring revenue to £64 million, a 12.7% increase since the start of the year.
In the first half to 30 June, revenue rose 2.3% to £45.3 million, while adjusted earnings before interest, tax, depreciation and amortisation climbed 18.4% to £8.3 million, improving margins to 18.4%.
Statutory profit after tax more than doubled to £3.9 million. Net debt fell to £3.9 million from £10 million a year earlier.
The shares rose 10.58p to 57.78p.