RM downgraded after trading statement

10th Feb 2011 15:23

RM, which supplies IT services to the educational sector, has been downgraded by broker Daniel Stewart following its interim management statement. Daniel Stewart has cut its profit projection for the 12 months to September 2011 from £22.4m to £20.4m. Revenues are expected to fall from £382m to £358m. RM says that trading is broadly in line with expectations but a large chunk of profit comes in the six months to September 2011. RM reported on the first four months of its financial year which is the weakest period. Revenues from the Learning Technologies division will be lower this year as schools are holding back their spending but the other parts of the business are expected to grow. RM is trying to build up revenues outside of the UK. RM is changing its year end from September to November so the next accounts will be for the 14 months to November 2011. RM will report interim results for the six months to March 2011 and annual results for the fourteen-month period.