Trading Statement

RM PLC 27 September 2001 27 September, 2001 RM plc - Pre-Close Update RM plc, the UK's leading supplier of software, services and systems to educational establishments, is providing the following update on trading activity for the 12 months to 30 September 2001 in advance of the close period. RM's business has a pronounced seasonal pattern, with the second half generating the majority of the full-year profit. This year, following a 46% growth in turnover in the first six months, order intake during the second half - and in particular during the last quarter - has been lower than expected. As a result, it is likely that the company's full-year profit before tax and goodwill amortisation, whilst showing growth on last year's figure (before exceptional provision) of £15.5 million, will fall below current market expectations. Gross margin percentage in the second half of the year has been significantly higher than it was in the first half. This, as expected, returns the Group's gross margin performance to its usual seasonal pattern. Furthermore, operating expenditure has continued to be tightly controlled during the second half of the year. The Group remains strongly cash generative and the year end cash position is expected to be significantly ahead of last year. Trading in the second half has been affected to a greater than expected extent by changes in the way the government's Standards Fund for educational ICT is being distributed in the current government year. Increased delegation of this funding to individual schools has extended sales cycles and, in some cases, caused schools to decrease the amount of their core budgets they allocate to ICT expenditure. Richard Girling, Chief Executive of RM plc commented, 'Whilst this is disappointing news, we still expect to show growth on last year's profit and RM remains the clear leader in the educational marketplace. With education expenditure set to grow by 9% year-on-year, and continued government enthusiasm for educational ICT, I am confident that our market continues to offer attractive growth opportunities.' - Ends - For further information, please contact: Richard Girling/Mike Greig, RM plc, 01235 826000 Andrew Fenwick/Fiona Fong, Brunswick 020 7404 5959

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