3rd Jul 2018 14:05
LONDON (Alliance News) - Education resources supplier RM PLC on Tuesday posted a significantly higher half year profit after it acquired The Consortium.
In the six months ended May 31, RM recorded a pretax profit of GBP6.9 million, a considerable jump from its GBP3.8 million profit the year before.
RM attributed the jump to its February 2017 acquisition of The Consortium. RM paid GBP56.5 million in cash for The Consortium, which contributed GBP24 million to RM's total revenue in its first half.
The company's total revenue for the period was GBP94.9 million, up from GBP71.3 million.
The UK based company said it will pay an interim dividend of 1.90 pence per share, up from 1.65p per share the previous year.
RM consists of three divisions: RM Results, RM Resources, and RM Education. Revenue across all three divisions increased in the company's most recent half.
"RM Resources continues to grow in international markets, has achieved growth in the UK and the integration of The Consortium acquisition is progressing as planned. RM Results is gaining traction internationally with three contract wins and RM Education continues to reposition itself with a lower cost base and improved operating margins," said RM Chief Executive David Brooks.
"This progress, together with a strong balance sheet, has enabled the board to increase the interim dividend by 15% and the board is confident of at least meeting full year expectations," he added.
Shares in RM were up 6.7% at 240.00 pence on Tuesday.
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