6 July 2015 – interim results
RM, which supplies IT and other services and products to schools and colleges in the UK, has announced its interim results for the six months to 31 May. These are much in line with expectations with revenues declining to £79.8m (2014: £92.1m) due to the group’s withdrawal from the IT hardware business. Adjusted pre-tax profits fell to £6.3m (2014: £7.0m) and adjusted diluted earnings per share fell to 5.8p (2014: 6.2p). However, as a sign of confidence over future prospects the interim dividend was raised by 25% to 1.20p (2014: o.96p) and net cash and short-term deposits at the period end was £43.1m (2014: £40.3m). These results are positive and revenue growth is expected to resume next year as other revenue streams make up for the lost sales from the discontinued hardware business. The strong balance sheet is also a positive and we continue to rate the shares as a BUY.