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 拢13.8m in 2009 to 拢5.9m in 2010, while total revenues dropped by nine per cent from 拢193.7m in 2009 to 拢175.4m last year.

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John Ormerod, chairman of Tribal, commented: 鈥�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.鈥�

Cost savings include reduction of the company鈥檚 cost base and disposal of non-core activities. Tribal sold Nightingale Architects for 拢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 拢27.8m in 2009 to 拢18.5m.

The firm also noted that current chief executive Peter Martin will stand down from his position in April.

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