21st May 2014 08:59
LONDON (Alliance News) - Shares in RM PLC rose Wednesday after the educational IT group said that its expects its adjusted operating profit for the first half of the year, and the year as a whole, to be materially higher than its previous expectations.
RM said that its operational and financial performance has been strong over the first five months of the year.
"Adjusted operating profit for the six months ending May 31, 2014 is anticipated to be higher than the comparable period last year, notwithstanding the restructuring of Education Technology," the company said in a statement.
RM shares rose 10% Wednesday morning, trading at 142.00 pence.
RM has been restructuring its Education Technology division, following the decision last year to end the manufacture and sale of personal computing devices.
The group said that due to good execution of the restructuring plan, it now expects the Education Technology division will be profitable in the first half of the year, with higher hardware revenues, better inventory realisations and lower costs than planned.
RM also said that both its Assessment and Data Services and Education Resources divisions are growing organically with good margins.
"The board expects that the group's seasonal bias of profits towards the second half of the financial year will be much less pronounced than last year, but nevertheless now anticipates that adjusted operating profit for the year to November 30, 2014 will be materially higher than its previous expectations," the company added.
RM said it will release its interim results in early July.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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