Rm Regulatory News (RM.)

27 Mar 2007 07:01

RM PLC27 March 2007 27 March 2007 RM plc: pre-close update for the six months ending 31 March 2007 - trading in line with management's expectations As part of its normal programme of communications with shareholders, RM isissuing an update on current trading prior to the end of the first half of itsfinancial year on 31 March 2007. Trading performance in the six months to 31 March 2007 so far has beensatisfactory and is consistent with management's expectations for the half-year. In addition, the Income Statement will include an exceptional credit related tothe Group's defined benefit pension scheme; details are given in note 3 below. The Board notes that the BBC Trust (the newly created regulator of the BBC) hasordered the suspension of BBC jam and has requested that BBC management "preparefresh proposals for how the BBC meets its public purpose of promoting formaleducation in the context of school age children". It is not yet clear what theeffects of this decision will be. Tim Pearson, CEO of RM, commented: "Our education project activity has continued to develop well. We've made goodprogress bidding for Building Schools for the Future projects, with threefurther wins - Knowsley, Leeds and Lambeth - in the half year. We have alsoconfirmed our selection for the C2K Lot 6 contract in Northern Ireland, whichmeans our Community Connect infrastructure software will now be used by allschools in Northern Ireland. "During the period, RM was selected by government agency Becta as one of alimited number of approved Learning Platform Services Suppliers. With projectssuch as Glow in Scotland, we are becoming world leaders in this increasinglyimportant area and continue to focus R&D resource on developing our Kaleidosproduct range. "Increasingly our education projects, as well as other products and services,require delivery of centrally-hosted applications. The half-year has seensignificant investment in enhancing and increasing our hosting capabilities." - Ends - For further information, please contact:Mike Greig/Phil Hemmings, RM plc 08450 700300Mark Antelme, Brunswick 020 7404 5959 Notes: 1. Founded in 1973, the RM Group is a leading provider of educational products and services to schools, colleges & universities, local government, and central government education departments & agencies. RM works closely with educationalists to create new products, processes and technology which improve teaching and learning. 2. RM expects to announce interim results for the six months to 31 March 2007 on 14 May 2007. 3. Defined benefit pension scheme • The Group operates a defined benefit pension scheme; this scheme, which has been closed to new members for four years, had an IAS19 deficit of £18.7m as at 30 September 2006. • In its Annual Report and Accounts for 2006, RM stated that it would make a one-off cash payment to the scheme of £3.5m in calendar year 2007, and that it was consulting active members on measures to further reduce the scheme's deficit. • The consultation has now completed with members voting for the introduction of a 5% cap on annual pensionable salary increases. This has resulted in an immediate reduction in scheme liabilities of approximately £3.5m and a corresponding reduction in the scheme's deficit. In consequence, the Income Statement will include an exceptional credit of approximately £3.5m. 4. RM is both a supplier to the education software market (which was affected by BBC jam) and, through its 3T subsidiary, a BBC jam sub-contractor. This information is provided by RNS The company news service from the London Stock Exchange