Feeds

RM shares take a caning following Board warning

When will somebody think of the children

Boost IT visibility and business value

Specialist education IT supplier RM has issued a warning that results for the year ending September may fall below expectations as market conditions remain challenging on both sides of the pond.

The market reacted badly to the interim management statement for the trading period from April Fools' Day to 21 July, sending the share price spiralling downwards by more than 14 per cent.

RM is a highly seasonal business, with the summer quarter typically its most important. The firm said: "Education market conditions continue to be difficult in the UK and the USA."

"Due to the seasonality of many of the Group's businesses, it is difficult to predict accurately the outcome for the current period until after the summer. However, the Board has undertaken a forecast review and the balance of probabilities suggests an outcome that may be below the Board's previous expectations".

Market watchers had predicted a 7 per cent fall in revenues to £351m for fiscal 2011 and EPS of 13 pence.

RM said net debt more than halved from £22.1m in June 2010 to £11m last month.

The firm was hit hard by the collapse of the British government's Building Schools for the Future programme last year – it was the biggest supplier on the framework – and kickstarted a redundancy programme soon after it ended.

However, RM said it is continuing a "comprehensive spending review", the results of which will be available by the autumn. "The Board will take the necessary actions to mitigate the changes in the market environment," it said.

"Shareholders should anticipate a potentially difficult and unpredictable period in the near term," the firm warned. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
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.
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.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.