Business
RM plc: Strategy timetable and closure of the...
RM plc: Strategy timetable and closure of the....
About this update from Rm Plc
[{"type":"text","content":"\n \n \n \n\n\t\n\n\n\n\n\n\n\n\n\n\n\nRM plc (RM.)\n\n\n\n\n\n\nRM plc: Strategy timetable and closure of the Consortium business 24-Nov-2023 / 07:00 GMT/BST\n\n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE UK VERSION OF THE MARKET ABUSE REGULATION (EU 596/2014) WHICH IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.\n\nFor immediate release\n\n24 November 2023\n\nRM plc\n\nStrategy timetable and closure of the Consortium business\n\n \n\nRM plc (“RM”, the “Company”), today announces in line with its strategy to be a leading global educational technology, digital learning and assessment solution provider, that the Board has taken the decision to close its loss-making Consortium business, part of the RM Resources division.\n\nAs announced by Mark Cook, CEO, at the half year results in August, focus in the second half has been on the development of a strategic roadmap for RM to create a simpler, more profitable business. This included a detailed review of RM’s portfolio to identify core areas of the business which were best placed to capitalise on the substantial EdTech opportunities. Full details of its strategic roadmap will be provided as part of RM’s full year results announcement in the New Year.\n\nThe Consortium business, the provider of education supplies and resources to schools, has experienced an extended period of underperformance following the negative impact of the rollout of a new ecommerce platform in 2022. Today the Company announces that it has taken the difficult decision to close this business from the end of December. The decision to close Consortium is in line with the future strategic direction for the Company and has been made with the full cooperation and support of its lenders. The decision will also enable RM Resources management to focus on its successful TTS business.\n\nIn the accounts for the year ending 30 November 2023, the Board expects to make a material write off of the carrying value of Consortium and its related assets as a non-cash item, and to make an additional provision for exit costs but there is not expected to be any cash impact in this current financial year. \n\nThe Company plans to issue a trading update in December for its financial year ending 30 November 2023.\n\n \n\nMark Cook, Chief Executive of RM, said \n...