Education software company Tribal Group (LON:TRB) saw shares fall by over 50 percent this morning, after issuing a disappointing trading update.

The company said that sales momentum had been slow this year, with several contracts taking longer than expected and therefore being moved into 2016, causing a hit to year-end profit.

As shares continue to fall, Tribal announced that the group will remove their listing from the Official List and apply to trade on the AIM market instead.

Richard Last, the Group’s Chairman, said in a statement:

“Despite considerable effort, a number of larger customer programmes have moved forward more slowly than previously anticipated, resulting in increased delivery costs, and recognition of related revenues will be deferred beyond the current financial year.

“We have therefore announced today that the Company proposes to launch a rights issue to raise up to £35 million, the proceeds of which will be primarily used to reduce debt, and for working capital.

“Additionally, the Company is proposing to apply for admission to AIM. AIM is a market appropriate for a company of Tribal’s size, and it offers greater flexibility with regard to future transactions.”

Tribal provide software and services to the education management market, including student management software and performance improvement solutions to universities, colleges and schools, both in the UK and internationally. The Group are currently trading down 54.94 percent at 24.50 pence per share. (0829GMT)

Previous articleRoyal Dutch Shell receives Chinese approval for BG merger
Next articleAlibaba Group acquire South China Morning Post, leading to independence concerns