RM profits dip in 'resilient' market

Education, education, education

RM saw profit drop by nearly £3m for the year ended 30 September 2008, but the company said its results were in line with expectations for the year.

The IT education supplier announced its prelims today in which it said pre-tax profit declined to £15.39m from £18.43m in 2007.

It pulled in total revenue for the year of £289.47m, up from £270.9m in its prior fiscal year.

Adjusted pre-tax profit was £16.4m, compared to £15.5m in 2007. Adjusted earnings per share also rose from 12.3 pence a year ago to 13.0 pence.

Despite the profit decline, the RM Board recommended an increase in dividend by six per cent to 5.81 pence per share, subject to approval at the company’s AGM.

RM boss Terry Sweeney, who has been on a considerable acquisition speeding spree in recent months, described the UK IT education market as “resilient” and said that the company’s customers are “not directly affected by current economic conditions”.

Earlier this month RM bought US-based education technology provider Computrac for £8m.

RM shares are currently trading at 153.00 pence, down 2.55 per cent on the London Stock Exchange. ®