1st Feb 2016 08:50
LONDON (Alliance News) - Educational IT group RM PLC Monday reported a rise in pretax profit for its most recently ended financial year, as it cautioned that market conditions in the UK Education sector will remain subdued.
For the year to end-November, RM reported a pretax profit of GBP19.2 million, up from GBP15.8 million, as a fall in revenue to GBP178.2 million from GBP202.5 million was offset by lower cost of sales, and it saw a GBP2.4 million gain from the release of a provision for dilapidations on leased properties and onerous lease contracts.
The fall in revenue was primarily due to a reduction in the company's RM Education segment, which it attributed to a shift in strategy away from selling hardware devices, and a reduction in new school openings under the UK government's Building Schools for the Future plan.
RM proposed a final dividend of 3.80 pence, taking its total dividend for the year to 5.00 pence, up from 4.00 pence a year before.
"2015 was another good year of progress for the group. Both RM Resources and RM Results grew organically and RM Education has been reshaped and is now on a stable platform for the future. The group's profit margins reaching double digits is a positive milestone," said Chief Executive David Brooks in a statement.
"Market conditions in the UK education sector will continue to be subdued as a result of increased pressure on school budgets. Our strategy continues to focus on retaining a leading market position for all three businesses whilst maintaining our stronger operating margins," Brooks added.
Shares in RM were down 8.6% at 148.03 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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