RM PLC
28 March 2006
RM plc: pre-close update for the six months ending 31 March 2006 - trading
supportive of full-year profit expectations
As part of its normal investor relations activities RM plc is issuing an update
on current trading prior to the end of its half-year on 31 March 2006. The Group
expects to announce its interim results on 15 May 2006; these will be the first
interim results RM has reported under International Financial Reporting
Standards (IFRS).
Trading performance in the year so far has been satisfactory and has reinforced
management's confidence in achieving expectations for profit for the year as a
whole.
Tim Pearson, CEO of RM, commented:
'Our response to challenging market conditions in the first quarter, along with
the increasing maturity of our education projects business, means that we
anticipate announcing encouraging first-half results. As is always the case for
RM, first-half outcome is not a good indicator for the year as a whole;
nonetheless, performance so far positions us well for the challenges of the
second half.
'Last week's Budget reinforced the government's commitment to education, with a
number of measures including increased direct payments to headteachers. Equally
importantly for the long-term health of the business, we continue to achieve
further improvement in levels of customer satisfaction and customer success by
working with schools and local authorities to deliver improved educational
outcomes. The SYeLP project, for instance, is meeting all of its targets and is
making a significant contribution to improving ICT skills in the South Yorkshire
sub-region.'
- Ends -
For further information, please contact:
Mike Greig/Phil Hemmings, RM plc 08709 200200
Fiona Laffan/Mark Antelme, Brunswick 020 7404 5959
Notes to Editors:
In its preliminary results announcement for the year ended 30th September 2005
(issued on the 21st November 2005), the Group made the following comments about
future prospects:
'As always at this time of our financial year, it is too early in the year to
make any meaningful comment on RM's performance in 2006. However, with English
head teachers facing budget pressures as a result of the workforce remodelling
programme and the introduction of teaching and learning responsibility payments
for teachers, the weakness in the market that was evident at the start of the
new academic year has continued into the current financial year.
'As previously mentioned, we are choosing to increase our investment in
business-development expenditure to prepare for the opportunities presented by
BSF. We believe that this is in the long-term interests of shareholders;
however, it will hold back profit growth in 2006.'
RM issued information about the transition to IFRS on 14 December 2005; this
transition information is available at www.rm.com/investors Full IFRS
comparative data for the first half of 2005 will be provided in the Group's
interim results statement.
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. Founded in 1973, RM works closely with
educationalists to use new products, processes and technology to improve
teaching and learning and is recognised as a leading innovator in the
educational information and communications technology (ICT) arena.
This information is provided by RNS
The company news service from the London Stock Exchange
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