Triad Group PLC (LSE: TRD)

Triad Group PLC (LSE: TRD) is an FTSE listed UK entity, providing information technology consultancy services that support technology-driven business transformation across the public, private, and not-for-profit sectors. The company primarily delivers these services through its permanent consultants and associate network. This Report covers the Key Recommendation Rationale, Conclusion, and Recommendation on the stock.

Key Recommendation Rationale – Sell at GBX 325.00

• Dividend Stagnation May Signal Conservative Capital Strategy - Despite a significant turnaround in profitability and revenue growth, the total dividend per share remained unchanged at 6 pence in FY25 compared to the prior year. This flat payout, while reflecting financial prudence, may raise questions among some shareholders about the company’s willingness to pass on improved earnings to investors, especially in a year where cash reserves and profits saw substantial improvement.
• Seasonal Revenue Fluctuations Still Evident - The company acknowledged that the second half was affected by “seasonally low revenue generating months,” despite achieving higher unaudited profits. While resilience is noted, this recurring pattern suggests that the business remains somewhat exposed to seasonal demand cycles, which could limit the predictability of revenue growth across all quarters.
• High Client Concentration in Public Sector Could Present Risk - A large portion of the company’s portfolio is tied to UK Government departments and public bodies, such as DESNZ, OPSS, the Ministry of Justice, and Cumbria Police. Although these contracts are high-profile and long-term, an over-reliance on public sector engagements may limit diversification and expose the company to policy shifts or budgetary changes within government.

Share Price Chart  

TRD Daily Technical Chart, Source - Refinitiv 

Conclusion

Given its current trading levels, Seasonal Revenue Fluctuations, recent rally in the share price, relative valuation, and associated risks, it is prudent to exit the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current Market Price of GBX 325.00 as of 15 September 2025 at 11:01 AM GMT+1.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 15 September 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.