RM PLC - Abingdon, England-based educational technology and digital learning and assessment provider - On Thursday last week, RM reports pretax loss widens to GBP41.2 million in the financial year that ended November 30 from GBP20.8 million the year before, as revenue from continuing operations declines by 8.9% to GBP195.2 million from GBP214.2 million. RM notes that 8.7% revenue growth in its key RM Assessment business and 5.8% growth in TTS International only partially offset a 43% revenue fall at its "troubled" Consortium business and pressures on its Technology managed service and TTS UK arms.
Looking ahead, RM says trading the first months of the current financial year has been in line with the company's expectations, and the full-year outlook remains in line with market expectations, with continuing businesses making up a "significant proportion" of lost revenue from Consortium, a school supply operation that has now been closed. RM expects to operate within its banking covenants. It had adjusted net debt of GBP45.6 million at the end of November, down from GBP52.0 million at the half-year stage. Chief Executive Mark Cook sets out a new strategic plan for growth, creating a "simpler and more customer-centric business" by investing in RM-owned and designed intellectual property.
Current stock price: 52.60 pence
12-month change: down 19%
By Tom Waite, Alliance News editor
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