RM talks tough market
RM reports: could do better
Schools provider RM posted reasonable results for the six months ended 31 March, in what it described as "tough market conditions".
Revenues were up five per cent to £114.2m on the same period a year ago and profit before tax was £2m, reversing a loss of £0.9m last year.
The firm said budget pressure on individual schools was increasing as a result of the introduction of teaching and learning responsibility payments. Sales of software were hit by these lower budgets and the BBC's schools software "jam".
Infrastructure software and services made up £39.9m in sales, education software and services contributed £26.2m, and hardware and distribution brought in £48m.
RM said its Building Schools for the Future (BSF) project had got off to a slower than expected start - to date it has one just one contract in Solihull. The company continues to believe BSF will pay off - but for 2007 it will continue to be an expense. A lot of school spending is seasonal and RM usually does much better in the second half of the year.
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