22nd Sep 2005 07:00
RM PLC22 September 2005 RM plc: pre-close update for the year ending 30th September 2005 - profit in line with expectations As part of its normal programme of communications with shareholders, RM plc, theUK's leading supplier of information and communications technology (ICT)software, services and systems to education, is issuing an update on currenttrading prior to the end of its financial year on 30th September 2005. Trading during the Group's peak summer season so far has been supportive ofmanagement's expectations for profit for the year as a whole. Turnover for theyear is likely to be similar to that in 2004. Conditions in the RM's core schools market have been largely as anticipated atthe time of the Group's interim results announcement in May 2005. As previouslyindicated, the Department for Education and Skills' workforce reform programmehas resulted in some pressure on overall school budgets, especially for primaryschools. In schools, PC hardware revenues have been broadly on plan, with sales of theaward-winning RM One all-in-one PC exceeding expectations. In the universitiesand colleges business, sales and marketing expenditure has been reduced againsta background of market weakness for low margin PC hardware; this has resulted inrevenue from these sectors being below management's original plan. RM's education project business continues to perform very well, both in terms ofnew contract wins and project delivery. Tim Pearson, CEO of RM, said: 'Our focus for 2005 was on delivery; we've made good progress both in ourindividual schools business and in our large education projects, with customersatisfaction levels continuing to increase across the business. 'The second half of the year has seen two further education project wins: theground-breaking £37.5 million Scottish Schools Digital Network - NationalIntranet project; and our re-appointment as the sole supplier of broadband andInternet services to the South West Grid for Learning, worth approximately £10million per year. Together with our other education projects, these newpartnerships firmly position RM as the UK's most experienced provider ofinnovative ICT solutions designed to deliver improved educational outcomes. 'We enter 2006 well placed to address the longer-term opportunities presented bythe educational ICT marketplace, in particular the Building Schools for theFuture initiative.' - Ends - For further information, please contact:Mike Greig/Phil Hemmings, RM plc 08709 200200Fiona Laffan/Mark Antelme, Brunswick 020 7404 5959 Notes to Editors: RM expects to announce preliminary results for the year in the second half ofNovember 2005. RM's business has a highly seasonal pattern, with the majority of revenues andan even higher proportion of profits occurring in the second half. This isdriven by the education buying cycle, with many schools placing orders in Juneand July for installation during the summer vacation period. The RM One is an educationally-differentiated, all-in-one PC, designed towithstand the rigors of school classrooms; it won the Education Resources Awardfor innovation at the Education Show in March 2005. RM has now introduced the RMMobile One, which brings many of the RM One's educational benefits to the laptopcomputer format. RM made the following comments in its 2005 interim results announcement in May. • On school budgets: 'As part of its workforce remodelling programme, the DfES has identified ICT as a key factor in managing schools efficiently and effectively. However, phase three of the programme, which requires that all teachers have at least 10% of their timetabled teaching time available for planning, preparation and assessment, is likely to result in increased pressures on school budgets in the immediate short term.' • On prospects for the Group: 'In the first half we have successfully replaced the one-off turnover relating to project shipments that was a feature of the comparative period last year. The factors that have allowed this - the contribution from acquisitions and growing education project revenues - will continue in the second half and we continue to anticipate modest turnover growth for the year as a whole.' This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Rm