17 September 2002
Pre close period update for the year ending 30 September 2002
RM confirms trading for full year in line with expectations
RM plc, the UK's leading supplier of ICT software, systems and services to
education establishments, is today providing a trading update in advance of
entering its close period. The Group confirms that it expects trading
performance for the year to 30 September 2002 to be in line with market
expectations. RM expects to make its Preliminary results announcement in
November 2002.
RM's business is highly seasonal with a large proportion of orders and
shipments occurring in the last quarter of the year. Order intake so far over
this key period has been in line with the revised plan put in place in
February, and is likely to deliver expected levels of full year pre-exceptional
profit.
The Group has now bought back 3.6 million shares (approximately 3.85% of the
Group's issued share capital) through its share purchase programme, returning £
2.7 million to shareholders. RM's cash balances remain strong.
The Group reported at the Interim stage that, following a major strategic
review, it intended to focus on its strong customer relationships and remain a
broadly-based supplier of products and services to education markets. Progress
across the business is as follows.
* PC and hardware operations have performed well. Order intake levels for the
Group's expanded range of notebook computers have been strong, with RM
achieving significant business from the £100 million Laptops for Teachers
(LfT) scheme. The Group is also experiencing continued growth in demand for
interactive whiteboards and associated whole-class teaching software, as
well as seeing encouraging initial interest in its innovative IntelliDesk
product.
* Uncertainty in the curriculum software market continues, with some schools
deferring software spend as a result of the BBC's Digital Curriculum.
Whilst the Group's MathsAlive and Easiteach products continue to be well
received by customers this uncertainty is, as anticipated in the Group's
revised plan, affecting trading in the Group's software division. As
indicated at the Interim stage, the Group's recovery plan already assumes a
significant level of impact from the BBC's proposed entry into the
educational content market.
* The Group's flagship education networking product family - RM Community
Connect - continues to perform well. The reception to RM Community Connect
3 has been good with, as expected, both existing and new customers putting
in place medium-term strategies to migrate from previous generations of the
product. Demand for RM Community Connect 2 upgrades and extensions also
remains healthy.
- Ends -
For further information, please contact:
Mike Greig/Phil Hemmings, RM plc 08709 200200
Andrew Fenwick/Fiona Fong, Brunswick 020 7404 5959
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