Prelim Results for Year Ended 31 December 2008

8/8/2019 Prelim Results for Year Ended 31 December 2008

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Insert textSecond level

Third level

Tribal Group plc

Preliminary results for the year ended 31 December 2008

Peter MartinChief Executive

Simon LawtonGroup Finance Director

17 March 2009


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Ag enda

Summary

Financial performance

Business review

Outlook

Q & A


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Financial Hi g hli g hts

Year ended 31 December 2008 2007 Increase

R evenue 234.0m 209.2m + 1 2%

Profit before tax* 18 .6m 15 .4m +2 1 %

Earnings per share* 1 4.7 p 1 2.2p +20%

Dividend per share 4.3 5 p 3.93p +11 %

Operating cash flow 2 1 .4m 22.4m

Operating cash conversion 1 36% 1 37 %

* : Before amortisation of intangibles, goodwill impairment and financial instrument costs: Pro rata annualised basis

3


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B usiness Achievements

Improved operational performance

Strengthened senior management team

Internal reorganisation implemented

Acquisitions successfully integrated

International development progressed

Increased committed income and sales pipeline

4


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C ommitted income at 1 January

Sales pipeline at 1 January

O utlook

5

2009

200 8

2009

200 8

1 39m

1 24m

29 7 m

1 68 m


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Financial Performance

7

* C ontinuing operations only

Before amortisation of intangibles, goodwill impairment and financial instrument costs

Revenue (m) * Profit before tax (m) * Earnin g s per share (pence) *

194

234

209

18.6

15.4

13.014.7

12.210.4

2006 200820072008200720062006 2007 2008


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Income Statement

Twelve months ended31 December 2008m 2007m

Growth

%

Continuin g O perations

Turnover 294.2 2 5 6.5 +15%

R evenue 234.0 209.2 +12 %

Operating profit* 1 9.8 17 .3 +14%

Operating margin 8.5% 8.3%

Interest ( 1 .2) (1 .9)

Profit before tax* 18.6 15.4 +21 %

Tax ( 5 .0) (4.4)

Profit after tax* 13.6 11.0 +24 %

Adjusted fully diluted EPS* (p) 14.7p 12.2p +20 %

No of W A diluted shares (000) 86,459 84,795

R evenue increase of 1 2%

Operating profit* up 1 4% to 1 9.8 m

Improved operating margin to 8 .5 %

Significant fall in interest and bank fees

Effective tax rate of 26. 8 %

Earnings per share up 20% to 1 4.7 p

Final dividend 2.6 5 p; total dividend of 4.3 5 p

8* Before amortisation of intangibles, goodwill impairment and financial instrument costs


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Committed Income

9

% of Total

139m

22m

3 8 m

7 9m

20 11 and beyond6m

20 1 029m

20091 04m

16%Support Services

27%Consultin g

57%Education 53m 21m 5m

4m

33m

18m

4m

At 1 January 2009

1m

4m


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Sales Pipeline

10

Support Services

Consultin g

Education164m

22m

16m 6m

At 1 January 2009

104m

86m

12m

47m

52m

Jan 08Jan 09

Total 297m 168m


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B alance Sheet

December 2008

m

December 2007

m

Intangible assets 2 17 .5 1 91 .2

Other non-current assets 11 .2 9. 1

N et debt ( 1 9.7 ) (6.8 )

N et working capital ( 1 3.6) ( 1 2.3)

Net assets 195.4 181.2

Share capital 8 3.1 7 9.0

Profit and loss reserves 4 5 .9 36.6

Minority interest1

.8 1

.1

Other reserves 64.6 64. 5

Total equity and reserves 195.4 181.2

Intangible assets increased by 26.3mdue to acquisitions

N o goodwill impairment

N et debt increased by 1 2.9mfollowing acquisitions

Strong working capital management

Gearing of 1 0.1 % (December 200 7 :3.8 %)

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Group Cash Flow

Twelve months ended 31 December 2008m

2007m

O peratin g cash flow

- continuing operations 26.9 23.6

- (decrease) / increase in restricted cash ( 1 .3) 1 .6

- discontinued operations - 2.6

25 .6 2 7 .8

Interest (0.9) (2. 1 )

Tax (3.3) (0. 7 )

Net cash flow before investin g &financin g 21.4 25.0

C apital expenditure ( 5 .1 ) (6.5 )

Free cash flow 16.3 18.5

Acquisitions ( 1 9.0) -Minorities and deferred consideration ( 5 .6) (2.2)

Dividends paid (4.4) (3.4)

Disposal of Mercury Health - 36.3

Increase / (repayment) of loans 1 0.6 ( 5 3.2)

Net chan g e in cash (2.1) (4.0)

Operating profit to cash flowconversion of 1 36%(200 7 : 1 37 %)

Free cash flow of 1 6.3m (200 7 :18 .5 m)

C apital expenditure of 5 .1 m(200 7 : 6. 5 m) includes productdevelopment costs of 1 .9m(200 7 : 2.3m)

Five acquisitions completed for

1 9.0m

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40m bank facility until June 20 1 2 withHBoS and HSB C

Actual C ovenant

Interest cover x 1 6.7 > x3.0Debt to EBITA x0.9


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B usiness review

Peter MartinC hief Executive

14


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Market Analysis

200 8 R evenue : 234m

Education 3 8 %C entral Government 20%Health 1 6%Housing and R egeneration 9%Local Government 9%UK Public Sector 92%International 4%

4%Private Sector


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B usiness Stream Analysis

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200 8 R evenue: 234m 200 8 Operating Profit*: 2 7 .4m

* Before central group costs

Support Services 23%

Education 41%

Consultin g 36%

Education 52%

Consultin g 30%

Support Services 18%


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Education

17

Year ended 3 1 December 200 8 200 7

R evenue (000) 96,40 8 91 ,581

Operating profit (000) 1 4,303 1 4,92 8

Operating profit margin (%) 1 4.8 % 1 6.3%


R evenue increased by 5 % to 96.4m

Operating profit fell by 4% to 1 4.3m

Good performance in software, training and deliverycontracts and inspections

Margin impacted by:- contract / business mix- investment in products and services- increase in bid costs / development capability

2009 margin anticipated to be at similar level

B usiness review

N ew chief executive appointed N ovember 200 8

R eorganisation being implemented six market facingbusiness unitsR estructuring / investment costs in H 1 2009C ommitted income of 7 9m at January 2009

Ofsted contract award ( 75 m over 6 years)

UK sales pipeline remains healthy

Good range of international opportunities


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Consultin g

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R evenue increased by 24% to 85 .2m

Operating profit increased by 6 8 % to 8 .3mC ontribution of 2.4m from acquisitions

Operating margins increased to 9. 7 %

Excellent performance in C entral Government

Good results from Health- establishment of commissioning business- strategic acquisitions

Housing, R egeneration & Local Government- integration (local government)- acquisitions (regeneration, local government)- softer trading conditions in regeneration

Strong performance from Tribal HELM

B usiness review

Significant increase in committed income to 3 8 m atJanuary 2009C ontinued importance of frameworks

Anticipate tightening in the spending environment but

Public sector reform agenda will continue:- performance improvement- commissioning- value for money- resource allocation

Strong pipeline in UK and internationally


R evenue (000) 85 ,1 91 68 ,666

Operating profit (000) 8 ,25 0 4,9 11

Operating margin (%) 9. 7 % 7 .2%


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Support Services

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R evenue increased by 4% to 5 4.3m

Operating profit increased by 20% to 4.9mMargin improved significantly

Architecture made good progress- health contracts / new frameworks

Excellent performance from C ommunications- acquisition / rebranding

R esourcing exceeded expectations despite difficult

markets

B usiness review

Architecture

- record order book in health- no significant dependence on PFI- uncertainty in FE / reducing cost base

C ommunications- acquisition provides distinctive, integrated offering- digital capability established- activity levels high

R esourcing- challenging conditions likely to continue- new business wins remain high

C ommitted income of 22m


R evenue (000) 5 4,2 77 51 ,99 7

Operating profit (000) 4, 8 61 4,04 1

Operating margin (%) 9.0% 7 .8 %


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20

O utlook

Peter MartinC hief Executive


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Macro O utlook

09/ 1 0. Headline spending plans to be maintainedTightening being seen on the ground, butPressure to reform, improve performance and achieve better value for money

1 0/11 . Post-election retrenchmentPublic sector finances will have deteriorated, however maintaining the

governments spending plans for the NHS , schools , defence and internationaldevelopment David Cameron, 5 January 2009

Tribals business driven by change, not by overall spending patterns

C urrent pipeline

Top 30 opportunities (by value)7 3% health or education22% international~4% capital-related~1 % PFI-related


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2009 Priorities

R etain focus on existing sectorsIncrease market share

Develop international activities

Exploit competitive advantages:Domain expertiseBreadth of capabilityTechnology

Increase committed income:Larger, longer-term contractsPipeline conversion

C ontrol overheads / reduce costs / planned investment


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Current Tradin g

Delivered plus committed revenue 49% of 2009 plan at end of February

H1 : restructuring costs 1 .0m / investments of 0. 7 m

R estructuringC ost reductions will generate annualised cost savings of at least 4m

InvestmentsN ew health and education initiativesInternational developmentBusiness development / bid costs

Strong pipeline / Ofsted contract secured

Further progress anticipated in 2009


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Q & A


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Client Feedback

The success of the N C ETM is in no small part due to Tribals expertise in portal development, project managementand in many other areas. The blend of Tribals expertise and N C ETMs mathematics education experts has provedvery successful in developing an innovative model for a national centre and thus establishing the N C ETM fromscratch. The C entre is now highly regarded across England and internationally.

Celia Hoyles OB E, Director, National Centre for Excellence in the Teachin g of Mathematics andProfessor of Mathematics Education, Institute of Education, University of London

Education

Health

Tribal have demonstrated their ability and skill in both influencing and challenging the organisation in relation to thekey priority areas, and have done so by a process of engagement and support across the organisation. Tribal are avalued and dynamic partner, who both share our core values and have helped us to aspire to realise our potential

Hilary Heywood - Pro g ramme Director, Ashton, Lei g h & W i g an Primary Care Trust

Tribal bring expertise and are transparently committed to achieving our goals. Y ou have seamlessly become part of the organisation and that is a big benefit for us. Many of the stakeholders involved have commented about the valuethat you are adding. People are feeding back how different it a ll feels now, how fresh the approach is and that itembodies everything that the organisation should be. You have created a real buzz about the work.

Director of Projects and Pro g rammes, R ural Payments Ag ency

Central Government

InternationalThe project is creating a continuously growing, critical mass of senior officers who feel comfortable in handling

change. At the same time, its development programme is letting the Government of Bangladesh see thatimprovements are possible if our officers have the right skills and proper support. It is also helping with keyimprovements in governance that will benefit important areas such as poverty reduction.

Secretary, Ministry of Establishment, Government of B an g ladesh


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Tribal Group plc

Preliminary results for the year ended 31 December 2008

END

This presentation is intended only as a summary of key points from TribalGroup plcs announcement of its results for the year ended 31 December 2008(the Full Year R esults 2008). Accordin g ly, reference should be made to theFull Year R esults 2008 and not to this presentation.

Documents

Prelim Results for Year Ended 31 December 2008