Shares of RM Plc. (RM.L) climbed around 14 percent in London trading after the educational IT and resources group said Wednesday that its trading in the third quarter has progressed ahead of expectations. RM now expects a significantly more profitable second half than expected earlier.
In its Interim Management Statement for the period from 1 June to 17 September, the company noted that the repositioning of the Education Technology division continues to proceed satisfactorily with costs running below plan. Lower costs than expected have also been incurred at the end of some long term managed service contracts. Profitability of the personal computing devices business, which is being wound down, has continued ahead of plan.
In the Education Resources division, good revenue growth and margin performance in TTS has continued ahead of expectations over recent months.
Further, the company said its Assessment and Data Services division, trading as RM Results, continues to trade in line with growth expectations.
As of August 31, net cash was 28.2 million pounds, compared with 38.3 million pounds a year earlier.
In London, RM shares were gaining 17.44 pence or 14.29 percent, and trading at 139.44 pence.
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