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RM revenue declines in face of UK.gov slash fest

US customer demand remains crappy as well

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School tech provider RM is still struggling with a "subdued" market, following the UK government's recent allocation of education funds.

The company said in a pre-close update this morning that revenue in the first half of its fiscal year, which ends on 31 March 2011, would be down on 2010's H1 figures.

Terry Sweeney, RM's boss, said: "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."

RM said sales of interactive classrooms were sluggish in the US and the supplier has seen lower customer demand for developments and enhancements in its assessment and data business.

The company said it was in the process of cutting costs in the areas of the business that had suffered the most from the slump. ®

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