RM results are back in the black

21st Feb 2013 11:48

Shares in RM jumped on Thursday following the company's announcement that it had returned to profit for the year ended November 30th 2012.Despite a decline in revenue and an increase in sales, the group delivered a profit of £8.75m (2011: loss of £23.38m) after reducing its operating and other expenses. The adjusted operating profit came in at £13.6m, compared to £14.1m the previous year. Revenue for the year fell to £288.69m from £350.79m a year earlier, while the cost of sales rose to £217.87m from £260.11m in 2011. The final dividend payment was increased to 2.25p (2011: 1.53p). Chairman Martyn Ratcliffe, who announced that he is planning to step down from the board in the summer, said: "The past year has been one of significant change within RM and the Board is pleased with the progress made, particularly in the context of public sector budget constraints. "Following the restructuring in 2011, the increased focus on working capital resulting in a very strong cash position at the year end and the launch of some exciting new cloud-based products in 2012, RM now has an excellent platform for the future as a leading provider of products, solutions and services into the UK education market."Progress against the board's objectives has been very positive. The disposal of loss-making and non-core business activities was completed in the first half of the year, realising cash receipts of £6.3m since the strategic review in September 2011. "The redundancy programme achieved the necessary streamlining of the group, reducing headcount from 2,699 in September 2011 before the strategic review, to 2,250 in November 2012.Cash and equivalents at the year end totalled £37.8m, up from £11.3m at the 2011 year-end. All change at the topAlong with its results, the company announced that David Brooks, the current Chief Operating Officer of the group, has been appointed as the new Chief Executive, effective from March 1st. Ratcliffe, who was appointed Non-Executive Chairman in June 2011, has announced his intention to leave this summer, and the company said it has started looking for his replacement. The share price rose 10.64% to 78p by 12:05 Thursday.NR