RM pleased with full-year performance as it integrates SoNET
Education technology and resources supplier RM reported a 1% improvement in revenue to £223.8m in its preliminary results on Tuesday, as a result of “good performance” in its technology divisions, which offset a “more challenging year” in RM Resources and the adverse effects of the adoption of IFRS 15.
The London-listed firm said its international revenue grew 18% for the year ended 30 November, which was primarily driven by new wins and the development of existing clients in its RM Results division.
It noted the acquisition of e-testing company SoNET during the period, in a bid to augment its software capability to enable full end-to-end digital assessment.
Adjusted operating profit rose 1% to £27.6m, as operating margins remained stable at 12.4%, and the company’s adjusted diluted earnings per share were ahead 2% at 26.4p.
Net debt widened to £15m, from £5.8m, following the funding of the acquisition, with the board confirming the paid and proposed for the full-year was increasing 5% to 8.00p.
“This has been a solid year for RM,” said chief executive David Brooks.
“Revenue and operating profit have been underpinned by a stronger underlying performance from our two technology divisions which have offset a challenging year in our resources division.
“We have continued to make good progress strategically including the acquisition of SoNET.”
Brooks said SoNET enabled the firm to provide end-to-end digital assessment in a growing market.
“In the year ahead, we are well placed to address the market opportunities across each of our divisions.”
At 1447 GMT, shares in RM were down 0.7% at 285p.