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RM Profit Rises On Improved Margins Despite Challenging UK Backdrop

9th Jul 2019 11:09

(Alliance News) - RM PLC on Tuesday reported a sharp rise in first half profit on improved margins as the company hiked its interim payout.

In the six months to May 31, the education technology supplier recorded a 22% increase in pretax profit to GBP8.4 million from GBP6.9 million the year before.

RM's revenue edged up to GBP95.5 million from GBP94.9 million the year before. RM saw its international revenue rise 33% year on year, which offset a 3.0% decline in UK revenue. The company's UK operations still account for 87% of RM's total revenue.

"The first half of the year has seen steady progress with profit growth in our two education technology divisions, RM Results and RM Education whilst the Resources division continues to progress its organisational consolidation against a challenging UK market backdrop," said Chief Executive David Brooks.

RM said an improvement in the operating margin within its two technology divisions - RM Results and RM Education - pushed the company's profit higher.

In the first half of the year, RM's adjusted operating profit margin was 10.2%, ahead of the 8.8% delivered a year before.

Brooks continued: "The interim dividend has been increased by 5% and our outlook remains to deliver full-year expectations."

The company declared an interim dividend of 2.0 pence per share, 5.3% higher than the 1.9p distributed the year before.

Shares in RM were 0.8% higher in London on Tuesday at 255.00 pence each.

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