REG-RM plc RM plc: Trading Update

RMAnnouncement

17/10/2022 07:15

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   RM plc (RM.)
   RM plc: Trading Update

   17-Oct-2022 / 07:00 GMT/BST
   Dissemination of a Regulatory Announcement that contains inside
   information in accordance with the Market Abuse Regulation (MAR),
   transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   This announcement contains inside information for the purposes of  Article
   7 of the  Market Abuse Regulation  (EU) 596/2014  as it forms  part of  UK
   domestic law  by  virtue  of  the European  Union  (Withdrawal)  Act  2018
   ("MAR"), and is  disclosed in  accordance with  the Company's  obligations
   under Article 17 of MAR. Upon the publication of this announcement via the
   Regulatory Information Service, this inside information is now  considered
   to be in the public domain.  The person responsible for arranging for  the
   release of this  announcement on  behalf of  the company  is Neil  Martin,
   Chief Executive Officer.

    

   17 October 2022

    

                                     RM plc

                Group revenues in line with market expectations

   Profitability impacted by operational issues related to ERP implementation

                           in the Consortium business

                                        

   RM plc  (“RM”), a  leading supplier  of technology  and resources  to  the
   global education sector today provides  an update on current trading  with
   respect to the 12-month period ending 30 November 2022.

    

   Group revenues remain positive with  both RM Assessment and RM  Technology
   expected to deliver revenue growth in the year. RM Resources, however, has
   experienced a  slower  than  expected recovery  in  the  Consortium  brand
   resulting from on-going challenges following the IT implementation.

    

   Despite improvement  through August  and into  September, continuation  of
   that progress  has  slowed which  has  impacted warehouse  throughout  and
   system and  process optimisation.  Shipment  volumes are  increasing,  but
   these are not  yet at  the expected  level. This  has also  resulted in  a
   continuation of elevated operating costs and warehouse inefficiencies with
   some related reduction in customer volumes.

    

   Remediation plans are in place that include reducing the order backlog  to
   normalised levels  in the  short  term; however,  as a  result,  operating
   profit in the current year will be significantly lower than forecast.  The
   IT plans are focused  on improving delivery in  Consortium, and the  wider
   programme has  been  substantially slimmed  down  as we  review  the  most
   efficient plan to completion in 2024. The impact of the IT  implementation
   on adjusted  operating profit  has in  part  been offset  by sales  of  IP
   addresses brought forward from FY23 in RM Technology.

    

   Near-term focus  continues to  be  on managing  debt levels  and  reducing
   underlying operating costs. Net debt at the end of the year is expected be
   slightly higher than  at the half  year which reflects  the positive  cash
   generation in the second half of the year offset by the impacts of the  IT
   programme.

    

   Neil  Martin,  Chief   Executive  Officer,   commented:  “The   challenges
   associated with the IT implementation have been material and impacted  our
   short-term priorities  and financial  performance.  We remain  focused  on
   delivering a plan to put  the business back on  a solid footing that  will
   deliver longer term value for all our stakeholders.”

    

   RM plc                                            
   Neil Martin, Chief Executive Officer             Tel: +44 (0)8450 700 300
   Emmanuel Walter, Chief Financial Officer          
   (interim)
   Cynthia Alers, Investor Relations Director        
   (interim)
                                                     
   Headland Consultancy                             Tel:  +44 (0)203 805 4822
   Stephen Malthouse                                 
   Jemma Savage                                      

    

   Notes to Editors:

    

   RM  provides   market-leading  products   and  services   to   educational
   institutions, exam

   bodies and international governments  which improve, simplify and  support
   education and learning.

    

   The education  sector  is  transforming,  and RM  is  well  positioned  to
   capitalise on this through its three divisions:

    

     • RM Resources is  the established provider  of education resources  for
       early years, primary schools and  secondary schools across the UK  and
       to 80 countries internationally.
     • RM  Assessment  (formerly  RM  Results)  is  a  leading  provider   of
       assessment software, supporting exam awarding bodies, universities and
       governments worldwide to digitise their assessment delivery.

     • RM Technology (formerly RM Education) is a market-leading supplier  of
       ICT software, technology and services to UK schools and colleges.

    

    

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   ISIN:           GB00BJT0FF39
   Category Code:  TST
   TIDM:           RM.
   LEI Code:       2138005RKUCIEKLXWM61
   OAM Categories: 2.2. Inside information
                   3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   194761
   EQS News ID:    1464581


    
   End of Announcement EQS News Service

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