RM stuffed by school cut backs
RM plc, who'll you probably know as Research Machines, has issued a profit warning for its second half.
The company, the UK's biggest supplier of software, services and systems, to schools, says it's been hit by education establishments cutting their spending on IT and communications kit.
The company also blames changes in the way that schools receive their funding for ICT (information and communications technology) - customers haven't received their cash as quickly as expected, so RM's sales cycles have been stretched.
RM's second half, which ends 30 September, usually generates the majority of its full-year profit.
In a statement the company said: "This year, following a 46 per cent growth in turnover in the first six months, order intake during the second half - and in particular during the last quarter - has been lower than expected."
"As a result, it is likely that the company's full-year profit before tax and goodwill amortisation, whilst showing growth on last year's figure (before exceptional provision) of #15.5 million, will fall below current market expectations." ®