Consultant reduces net debt by a third, announces that chief executive will stand down in April
Consultancy Tribal Group has attributed a 57% drop in profit for the 2010-11 financial year to public sector spending cuts.
In final results for the period, Tribal, which focuses on public sector work, reported a fall in adjusted profit before tax from £13.8m in 2009 to £5.9m in 2010, while total revenues dropped by nine per cent from £193.7m in 2009 to £175.4m last year.
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John Ormerod, chairman of Tribal, commented: “2010 was a year of considerable change for Tribal. Our markets in the UK, particularly for advisory activities, were impacted by public sector spending constraints. Internally, we implemented a substantial change programme to reduce costs, streamline our operations and dispose of non-core assets. We maintained our focus on working capital management and negotiated revised banking facilities committed to 2015.”
Cost savings include reduction of the company’s cost base and disposal of non-core activities. Tribal sold Nightingale Architects for £13m to the UK subsidiary of Canadian design group IBI in June 2010.
As a result of such measures it reduced net debt over the period by a third from £27.8m in 2009 to £18.5m.
The firm also noted that current chief executive Peter Martin will stand down from his position in April.