Rm Regulatory News (RM.)

24 Mar 2009 07:00



24 March 2009

RM plc: pre-close update for the six months ending 31 March 2009 - trading in line with management's expectations

As part of its normal programme of communications with shareholders, RM is issuing an update on current trading prior to the end of the first half of its financial year on 31 March 2009. 

Trading in the year so far has been supportive of Management's expectations for the year as a whole.

RM's customers are predominantly in the public sector and have good visibility of forward budgets. The Group stated in its Interim Management Statement, published on 9 February 2009, that it had seen no evidence of reductions in spending in its markets; this remains the case at the date of this announcement. 

Revenue in the first half of the year will be ahead of last year, reflecting a significant increase from BSF and the acquisition of Computrac in November.

RM is a seasonal business, reflecting buying patterns in the schools market: the majority of revenues and an even greater proportion of profit occur in the second half of the Group's financial year. As in previous years, performance in the first half is not a good indicator of full-year outcome.

The previously-reported reorganisation of the Group's curriculum software activities into a single business unit is now complete, with a one-off cost of c.£0.4m falling into the first half of the year. The new business, branded Lightbox Education, has recently secured a £6m, two-year development contract with Department for Children, Families and Schools, which was announced earlier this month.

Terry Sweeney, Chief Executive of RM, commented:

"We anticipate strong revenue growth in the first half of 2009, reflecting previous investment in BSF bidding and in the acquisition of Computrac. 

"It is great news that Computrac and the reconfigured Lightbox Education Division have both reported significant project wins in the half. The three contract extensions we've seen in our Learning Technologies business so far this year, which together are worth £36m, demonstrate how valuable long-term contracts are to the Group."

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Notes:

Founded in 1973, 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.

RM expects to announce preliminary results for the six months to 31 March 2009 on 11 May 2009.

RM has announced three contract extensions in the first half of 2009: in November, a two-year, £14m extension with Dudley Metropolitan Borough; on 24 February 2009, a five-year, £6.6m extension with Lambeth Council; and on 9 March, a three-year, £15m extension with South Lanarkshire Council.