Business
Interim Results for the six months ended 31 May...
Interim Results for the six months ended 31 May....
About this update from Rm Plc
[{"type":"text","content":"\n \n\n\nRM plc (RM.)\n\n\n\nRM plc: Interim Results for the six months ended 31 May 202223-Aug-2022 / 07:00 GMT/BSTDissemination of a Regulatory Announcement that contains inside information in accordance with the Market Abuse Regulation (MAR), transmitted by EQS Group.The issuer is solely responsible for the content of this announcement.\n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n\n \n\n23 Aug 2022 \n\nRM plc\n\n \n\nInterim Results for the six months ended 31 May 2022\n\n \n\nRM plc (“RM”), a leading supplier of technology and resources to the education sector, reports its interim results for the period ended 31 May 2022.\n\n \n\nHeadlines\n\nRevenue up 4% driven by growth in RM Resources and the return of UK school exams in RM Assessment\n Positive underlying progress on path to sustainable growth including encouraging wins across all Divisions\n Adjusted operating profit decline of £3.6m reflects the required turnaround in the RM Technology division, impacts associated with the IT implementation programme and increased freight costs in RM Resources \n Statutory loss after tax of £5.9m (2021: £2.0m profit) due to lower operating profits and higher expensed investment program costs £7.7m (2021: £3.4m) \n Implementation of new IT platform proving more challenging than anticipated, leading to extended timelines and increased project cost\n Net debt of £41.5m, with normal seasonal working capital movements and elevated IT project spend. Bank covenants relaxed at May 2022 and November 2022\n Payment of dividend paused due to elevated debt levels. Board remains committed to a sustainable dividend policy and will review again ahead of the preliminary results.\n 31 May 2021 Pension triennial concluded with scheme deficit reducing from £46.5m to £21.6m (IAS19 accounting basis is a surplus of £38.7m) \nOutlook\n\nSchool funding is increasing in the UK, but school budgets have challenging headwinds notably salaries, energy costs and inflation which will impact discretionary spend\n Underlying market drivers continue to strengthen, confirming long-term growth potential with leadership positions in resilient markets\n Improving underlying sales momentum in each division and phasing impacts of delayed shipments in RM Resources from H1 to H2 supports positive revenue outlook\n Macroeconomic environment is challen...