RM says profits to be 'materially higher'

21st May 2014 14:07

First-half profits at educational IT and resources group RM will be 'materially higher' than previously expected, the company informed investors on Wednesday. The restructuring of the Education Technology division is now anticipated to deliver profits in the first half of 2014, with "higher hardware revenues, better inventory realisations and lower costs than planned".Furthermore, both the Assessment and Data Services and Education Resources divisions were said to be "growing organically with good margins" in the first five months of the financial year to November 30th 2014.As a consequence, RM said adjusted operating profit for the six months to May 31st are anticipated to be higher than the comparable period last year, notwithstanding the restructuring of Education Technology. While the seasonal bias of profits towards the second half of the financial year will be much less pronounced than last year, management nevertheless now anticipates that adjusted operating profit for the year to would be "materially higher than its previous expectations".Shares in RM, which will release its interim results in early July 2014, were up 8.14% to 139.5p at 14:17 on Wednesday. OH