Business
Pre-close Trading Update
Pre-close Trading Update.
About this update from Rm Plc
[{"type":"text","content":"\n \nRNS Number : 9598D RM PLC 31 March 2011 \n \n\n \n \n \n \n31 March 2011 \n \nRM plc: pre-close update for the six months ending 31 March 2011 - trading in line with expectations and further reductions in costs\nAs 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 2011.\n \nTrading for the year to date has been supportive of management's expectations for the year as a whole when the Group published its Interim Management Statement on 10 February 2011. \n \nRevenue for the first half will decline on last year reflecting the challenging education market conditions anticipated in UK Learning Technologies at the time of RM's annual results announcement on 22 November 2010, the slowdown in interactive classroom fit-out demand in the US and lower customer demand for developments and enhancements in the Assessment and Data business.\n \nIn response to continued subdued demand, management has already taken action to reduce the cost base in the areas of the business which are most affected. This is expected to yield an annualised reduction in the cost base of over £5 million at a cost of c.£1.7 million.\n \nAs stated in the Group's 2010 annual results announcement, from 2011 RM intends to change its financial year end from 30 September to 30 November. The change of year end will mean that 2011 will be a 14-month period, running from 1 October 2010 to 30 November 2011. RM will report interim results for the six months to March 2011 and annual results for the fourteen-month period.\n \nRM is a seasonal business, reflecting buying patterns in the schools market: the majority of revenues and an even greater proportion of profit occur in the second half of the twelve month period to September. As in previous years, performance in the first half is not a reliable indicator of the outcome for the full year, nor for the 14 month period to 30 November 2011.\n \nTerry Sweeney, Chief Executive of RM, commented:\n \n\"Market conditions continue to be subdued as customers respond to changes in policy and funding. Consequently we are aligning our cost base to reflect the new conditions and to protect Group profitability.\n \n\"RM continues to win new ...