Feeds

RM reports first-half loss, nasty sales dip

But ups its divvy, forecasts goodness ahead

The essential guide to IT transformation

Education technology provider RM saw revenue decline 15 per cent in the first six months of the company's fiscal year.

Sales fell to £133m for the period ended 31 March, compared to £156.4m for the same H1 in 2010.

It was also hit with a first-half pre-tax loss of £1.4m, after restructuring charges of £1.8m and a £1.2m charge for share-based payments. In the same period in 2010, RM reported profit of £1.2m.

"We experienced challenging market conditions in our core markets in the first half, as customers continued to respond to changes in policy and funding in both the UK and the US," said RM boss Terry Sweeney, who was reiterating earlier financial statements about the current state of the firm's business.

"We have realigned our cost base through a restructuring programme to reflect the changed conditions and to protect group profitability," he added.

Despite RM's chief admitting that the company continues to face problems in its US and UK wings of the biz, due to the Coalition's relocation of education funds and sluggish performance Stateside, the supplier raised its interim dividend by six per cent to 1.47 pence.

It also predicted full-year profit to be in line with market expectations.

"RM continues to win new strategic customers, and to extend current relationships across all our divisions. Demonstrating the resilience of our business, we have seen 12 per cent growth in our forward committed revenues to £436m. This reflects the value that our customers see RM adding through our expertise and deep understanding of education," said Sweeney.

Shares in RM on the London Stock Exchange are currently trading down 7.33 per cent at 123.25 pence. ®

5 things you didn’t know about cloud backup

More from The Register

next story
True fact: 1 in 4 Brits are now TERRORISTS
YouGov poll reveals terrible truth about the enemy within
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?