Pre-close Trading Update

RNS Number : 9598D

RM PLC

31 March 2011

RM plc: pre-close update for the six months ending 31 March 2011 - trading in line with expectations and further reductions in costs

As part of its normal programme of communications with shareholders, RM is issuing an update on current trading prior to the end of the first half of its financial year on 31 March 2011.

Trading for the year to date has been supportive of management's expectations for the year as a whole when the Group published its Interim Management Statement on 10 February 2011.

Revenue for the first half will decline on last year reflecting the challenging education market conditions anticipated in UK Learning Technologies at the time of RM's annual results announcement on 22 November 2010, the slowdown in interactive classroom fit-out demand in the US and lower customer demand for developments and enhancements in the Assessment and Data business.

In response to continued subdued demand, management has already taken action to reduce the cost base in the areas of the business which are most affected. This is expected to yield an annualised reduction in the cost base of over £5 million at a cost of c.£1.7 million.

As stated in the Group's 2010 annual results announcement, from 2011 RM intends to change its financial year end from 30 September to 30 November. The change of year end will mean that 2011 will be a 14-month period, running from 1 October 2010 to 30 November 2011. RM will report interim results for the six months to March 2011 and annual results for the fourteen-month period.

RM is a seasonal business, reflecting buying patterns in the schools market: the majority of revenues and an even greater proportion of profit occur in the second half of the twelve month period to September. As in previous years, performance in the first half is not a reliable indicator of the outcome for the full year, nor for the 14 month period to 30 November 2011.

Terry Sweeney, Chief Executive of RM, commented:

"Market conditions continue to be subdued as customers respond to changes in policy and funding. Consequently we are aligning our cost base to reflect the new conditions and to protect Group profitability.

"RM continues to win new strategic customers such as the Scottish Qualifications Authority, to extend existing relationships and to grow committed forward revenues, demonstrating the underlying strength of our business."

Notes:

The RM Group is a leading provider of educational solutions that help teachers to teach and learners to learn. RM works closely with educationalists to create new products, processes and technology which improve education. RM is listed on the main market of the London Stock Exchange under the symbol RM.L, ISIN GB0002870417. Further details are available at www.rm.com/investors and through the Group's investor blog at rminvestors.wordpress.com

RM expects to announce preliminary results for the six months to 31 March 2011 on 16 May 2011.

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