RM PLC
27 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 is
issuing an update on current trading prior to the end of the first half of its
financial year on 31 March 2007.
Trading performance in the six months to 31 March 2007 so far has been
satisfactory and is consistent with management's expectations for the half-year.
In addition, the Income Statement will include an exceptional credit related to
the 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) has
ordered the suspension of BBC jam and has requested that BBC management 'prepare
fresh proposals for how the BBC meets its public purpose of promoting formal
education in the context of school age children'. It is not yet clear what the
effects of this decision will be.
Tim Pearson, CEO of RM, commented:
'Our education project activity has continued to develop well. We've made good
progress bidding for Building Schools for the Future projects, with three
further wins - Knowsley, Leeds and Lambeth - in the half year. We have also
confirmed our selection for the C2K Lot 6 contract in Northern Ireland, which
means our Community Connect infrastructure software will now be used by all
schools in Northern Ireland.
'During the period, RM was selected by government agency Becta as one of a
limited number of approved Learning Platform Services Suppliers. With projects
such as Glow in Scotland, we are becoming world leaders in this increasingly
important area and continue to focus R&D resource on developing our Kaleidos
product range.
'Increasingly our education projects, as well as other products and services,
require delivery of centrally-hosted applications. The half-year has seen
significant investment in enhancing and increasing our hosting capabilities.'
- Ends -
For further information, please contact:
Mike Greig/Phil Hemmings, RM plc 08450 700300
Mark 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
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