Improved trading at Tribal Group

20th Jan 2011 09:06

Trading improved at outsourcing firm Tribal Group in the final quarter of the year and adjusted pre-tax profit for the year ended 31 December 2010 will be in line with the board expectations.Tribal, which saw its shares go into freefall following the announcement of government spending cuts and the collapse of bid talks, said it had since noted an encouraging increase in the level of new business activity.It had also seen some improvement in market conditions in the UK since October 2010 although demand for advisory work in central government has remained subdued, it said. Overall Tribal said it had continued to see a strengthening in its international pipeline. The group, which works with government departments, hospitals and schools, however cautioned, "While we have seen signs of improvement in market conditions in the UK, the environment for advisory work is likely to be characterised by continued uncertainty."However the continued strength of the sales pipeline, together with its cost reduction programme, provides it with a, "sound basis for the group to make progress during the course of 2011." In a separate statement Tribal announced that, in light of the announcement made in December, its chief executive Peter Martin has agreed to remain in his post on a temporary basis after 31 December 2010.