Rm Regulatory News (RM.)

9 Feb 2009 07:00

9 February 2008

RM - Interim Management Statement

RM is today issuing its Interim Management Statement for the first half of its financial year, covering the period from 1 October 2008 to 6 February 2009. 

Trading update - expectations for the full year remain unchanged

RM's annual results announcement, issued on 24 November 2008, stated that the Group had seen no indications of a decrease in spending in its markets. This remains the case and trading is in line with management's plan in the Group's three areas of activity.

RM's business is seasonal reflecting buying patterns in the schools marketplace, with a large majority of the year's profit arising in the second half. In addition, the first quarter of the Group's financial year is the lowest for revenue and order intake. As a consequence of these factors, performance at this stage is not a reliable indicator of the outcome for the full financial year. 

In line with its normal programme of communications with shareholders, RM anticipates issuing a pre-close update for the first half of its financial year, which ends on 31 March 2009. 

Operational update

In November 2008, RM acquired Computrac, a supplier of interactive classroom technology to schools in the Southeastern United States, for a total cost of up to US$8m. Integration of Computrac is proceeding in line with plan and, since its acquisition by the Group, Computrac has been awarded new contracts worth up to US$32m with Cobb County Schools District in Georgia. 

RM reported in its annual results announcement its intention to reorganise its curriculum software activities into a single business unit. This business, re-branded as Lightbox Education, was launched in January 2009. The changes will result in annualised cost savings of c.£1m, with a one-off cost of c.£0.4m in the first half of 2009. 

RM remains the clear ICT market leader in the BSF (Building Schools for the Future) programme. Since the beginning of the financial year RM has been appointed as selected bidder for a further BSF contract and for two BSF "One-School Pathfinder" projects, and has reached financial close on three BSF contracts. The Group's success rate in BSF projects remains supportive of management's targets for the programme as a whole.

Financial position

RM's financial position is strong and the Group's cash balances are tracking management's plan for the year. As previously reported the Group signed a five-year, £25m committed bank facility with HSBC in July 2008 and, in addition, has a £25m working capital facility in place.

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Notes:

The RM Group is a leading provider of educational products and services to schools, colleges and universities, local government and central government education departments and agencies. RM works closely with educationalists to create new products, processes and technology which improve teaching and learning. RM is listed on the main market of the London Stock Exchange under the symbol RM.L, ISIN GB0002870417.