RM sees half year profits rise despite lower revenues

7th Jul 2014 14:34

ICT and resources group RM posted a rise in half year profit despite revenues suffering an anticipated decline as the group transforms its Education Technology business.Revenue for the period totalled £92.1m (2013: £118.8m), reflecting growth of 3% in Assessment and Data Services, an increase of 11.3% in Education Resources, and a 36.2% decline in Education Technology.The reshaping of the division has so far progressed well, while the other two divisions continue to grow organically and maintain good margins, RM said. Profit totalled £6.7m, up from £4.6m a year earlier, while diluted earnings per share increased from 3.6p to 5.9p. Chief Executive David Brooks said: "We are pleased to report a solid set of results for the first half. We are particularly encouraged by the double digit top-line growth in Education Resources for both UK and exports, while maintaining good margins in this business. "The reshaping of the largest division, Education Technology, continues with the discontinuing of hardware device manufacturing and the end of the stand-alone sale of personal computer devices progressing well. "As headlined previously, refocusing this business on software and services will take time with the trend towards devolved procurement at a school level and the expiry of BSF contracts. Assessment and Data Services continues to grow organically and maintain strong margins."The group's trading performance in the second half is expected to be similar to that in the first. The interim dividend was increased by 14.3% from 0.84p to 0.96p per share. Shares had lost 2.17% of their value to 168.75p by 14:32.NR