Trading Statement

17 September 2002 Pre close period update for the year ending 30 September 2002 RM confirms trading for full year in line with expectations RM plc, the UK's leading supplier of ICT software, systems and services to education establishments, is today providing a trading update in advance of entering its close period. The Group confirms that it expects trading performance for the year to 30 September 2002 to be in line with market expectations. RM expects to make its Preliminary results announcement in November 2002. RM's business is highly seasonal with a large proportion of orders and shipments occurring in the last quarter of the year. Order intake so far over this key period has been in line with the revised plan put in place in February, and is likely to deliver expected levels of full year pre-exceptional profit. The Group has now bought back 3.6 million shares (approximately 3.85% of the Group's issued share capital) through its share purchase programme, returning £ 2.7 million to shareholders. RM's cash balances remain strong. The Group reported at the Interim stage that, following a major strategic review, it intended to focus on its strong customer relationships and remain a broadly-based supplier of products and services to education markets. Progress across the business is as follows. * PC and hardware operations have performed well. Order intake levels for the Group's expanded range of notebook computers have been strong, with RM achieving significant business from the £100 million Laptops for Teachers (LfT) scheme. The Group is also experiencing continued growth in demand for interactive whiteboards and associated whole-class teaching software, as well as seeing encouraging initial interest in its innovative IntelliDesk product. * Uncertainty in the curriculum software market continues, with some schools deferring software spend as a result of the BBC's Digital Curriculum. Whilst the Group's MathsAlive and Easiteach products continue to be well received by customers this uncertainty is, as anticipated in the Group's revised plan, affecting trading in the Group's software division. As indicated at the Interim stage, the Group's recovery plan already assumes a significant level of impact from the BBC's proposed entry into the educational content market. * The Group's flagship education networking product family - RM Community Connect - continues to perform well. The reception to RM Community Connect 3 has been good with, as expected, both existing and new customers putting in place medium-term strategies to migrate from previous generations of the product. Demand for RM Community Connect 2 upgrades and extensions also remains healthy. - Ends - For further information, please contact: Mike Greig/Phil Hemmings, RM plc 08709 200200 Andrew Fenwick/Fiona Fong, Brunswick 020 7404 5959

Companies

RM (RM.)
UK 100

Latest directors dealings