Last checked at 19 Mar 2020 07:00
19 March 2020
RM plc - Trading update, impact of COVID-19 and cancellation of final dividend
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/ 2014. For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055
RM plc ("RM") is a leading supplier of technology and resources to the education sector.
RM notes the announcements from UK government that all schools and colleges will be closed for an indeterminate period and examinations cancelled in response to the outbreak of COVID-19. A closure of this scale, in addition to broader international closures and travel restrictions, will inevitably impact trading for the companies in the Group.
To date, trading has been broadly unaffected and RM's priority has been to work closely with its customers and employees to plan for different possible scenarios. Whilst the evolving situation remains uncertain, the Board is evaluating a number of actions to balance the conservation of cash with the long-term needs of the business. Given the need for prudent cash management, the Board has taken the step to recommend the withdrawal of the proposed final dividend at the forthcoming Annual General Meeting on 26 March 2020. Accordingly Resolution 2 will no longer be put to the shareholders and the proposed final dividend of 6p per share will no longer be paid.
The Group enters this period of uncertainty in a robust financial position with a committed credit facility of £70m (net debt was £30.0m as at 29 Feb 2020). A material impact on trading is anticipated in the coming months and on financial performance for the full year, but the effects are difficult to quantify at present.
David Brooks commented: "As a market leader, RM's products and services underpin the national education system and the Board remains confident of the Group's fundamental resilience and ability to pay dividends in the future."
The person responsible for arranging the release of this announcement on behalf of RM is Mark Lagler, Company Secretary of RM.
Contacts:
RM plc 08450 700 300
David Brooks, Chief Executive Officer
Neil Martin, Chief Financial Officer
Mark Lagler Company Secretary
Headland Consultancy 0203 805 4822
Stephen Malthouse, Abena Affum
Notes to Editors:
RM plc is a leader in the education sector, providing support throughout the stages of education
with its three focused divisions:
· RM Resources is an established provider of education resources for early learning centres, primary schools and secondary schools across the UK and internationally. Our brands, TTS and Consortium, develop and supply resources to help bring the curriculum to life for teachers and students.
· RM Results is a world-leading provider of e-Assessment services, enabling e-marking, e-testing and the management and analysis of educational data. RM Results marks approximately 200 million exam pages, working with prominent exam providers, professional bodies, universities and governments.
· RM Education is a market-leading supplier of ICT software, technology and services in the UK. It helps schools save time and money, create a secure environment and enables them to enhance teaching and learning.