Interim Management Statement

RNS Number : 8571K

RM PLC

22 July 2011

 



22 July 2011

RM plc

Interim Management Statement

RM is today issuing its Interim Management Statement for the period from 1 April 2011 to 21 July 2011.

Education market conditions continue to be difficult in the UK and the USA. Due to the seasonality of many of the Group's businesses it is difficult to predict accurately the outcome for the current period until after the summer. However, the Board has undertaken a forecast review and the balance of probabilities suggests an outcome that may be below the Board's previous expectations.

Total net debt (including borrowing on the committed facility, loan notes payable and deferred consideration on previous acquisitions) was £11.0m at 30 June 2011 (30 June 2010: £22.1m).

Over the past two months a review of the Group's operations has been in process and is continuing. The final outcome of this process is anticipated in the late autumn. RM has an unrivalled position within the UK education market and there are many excellent and committed employees within the Group. Furthermore, in the next few years the Group will benefit from the cash flow derived from  past investment in BSF. These factors should enable the Group to adapt to the anticipated decline in education expenditure, although shareholders should anticipate a potentially difficult and unpredictable period in the near term. The Board will take the necessary actions to mitigate the changes in the market environment and is undertaking a comprehensive strategic review. 

Contacts:

RM plc	08450 700300
Martyn Ratcliffe, Chairman
Terry Sweeney, Chief Executive Officer
Iain McIntosh, Chief Financial Officer
Financial Dynamics	020 7831 3113
James Melville-Ross

 

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