Business
Expectations for FY Unchanged
Expectations for FY Unchanged.
About this update from Rm Plc
[{"type":"text","content":"\n RM PLC\n25 March 2008\n\n\n 25 March 2008\n\n\nRM plc: pre-close update for the six months ending 31 March 2008 - management's\n expectations for the full year unchanged\n\n\nAs part of its normal programme of communications with shareholders, RM is\nissuing an update on current trading prior to the end of the first half of its\nfinancial year on 31 March 2008.\n\nRM is a seasonal business, with the majority of revenues and an even greater\nproportion of profit occurring in the second half. As a result, and as in\nprevious years, first half performance is not a good indicator of full-year\noutcome.\n\nManagement's expectations for the year as a whole remain unchanged. However, as\nindicated in the Group's Interim Management Statement, issued on 6 February\n2008, a number of factors have combined to mean seasonality will be more marked\nthan in the last two years.\n\n• BSF bid costs will be approximately £4.5m for the year as a whole,\n with the increase over the prior year falling largely in the first half (first\n half 2007 BSF bid costs were £1.6m).\n\n• Order intake levels for learning platforms are significantly ahead\n of plan; however, it is taking longer than anticipated to convert these orders\n into revenues and the first-half investment in this area is larger than\n anticipated.\n\n• The Group's education resources business, which is planned to grow\n rapidly this year, will be more second-half weighted than previously expected.\n\nBSF remains RM's major area of investment and is progressing extremely well. Of\nsix ICT contracts that have reached selected bidder stage since the beginning of\nthe financial year, the Group has won three - ahead of its target -\ndemonstrating the attractiveness of its BSF proposition. The programme continues\nto gain momentum and Partnerships for Schools, the government agency responsible\nfor delivery, reports that there are now 11 BSF schools open.\n\nTim Pearson, CEO of RM, commented:\n\n''As has happened in other years, the first half of 2008 has had its challenges\nand there's more left to do in the second half of the year. That said, we still\nexpect that the full year outcome will be in line with our expectations.\n\n'Looking further ahead, the recent Budget reinforced the government's long-term\ncommitment to education and confirmed the spending levels indicated in last...