Education specialist RM has reported healthy interim results for the first half of its 2010 financial year as its Building Schools for the Future (BSF) business continues to grow.
The VAR and system builder saw revenue increase 10 per cent for the six months ended 31 March 2010 to £156.4m, compared to £141.9m in 2009. Pre-tax profit also increased to £1.2m, up from £1m in 2009. It also has cash funds of £4m.
Terry Sweeney, chief executive of RM, said: “We have executed well so far in 2010. Group revenue is up, with a particularly strong performance from Education Resources and long-term committed revenues now stand at £505m, including seven new BSF project wins.
“As we always comment at this stage, the seasonality of RM’s business means that the first half of the financial year is not a good indicator of results for the year as a whole. However, sales momentum continues across the business and we have seen good progress in each of our divisions. We anticipate further progress in the second half and growth for the year as a whole.”
Sweeney said the firm is looking forward to responding to the requirements created by the new UK government and said RM is expecting further growth in international markets.
“Over the past five years we have broadened the range of education products and services we sell, significantly increased our international footprint and built a substantial order book,” he said. “These factors, combined with strong customer loyalty from our individual schools customers, make us a resilient business that is not dependent on any one product or market area.”
In separate news RM has formed a joint venture with LEGO Education, which will see it own 49 per cent of a new company called LEGO Education Europe. The remaining 51 per cent will be owned by the LEGO Group.
As part of the agreement between LEGO Education and RM, the new company would hold exclusive European education distribution rights for LEGO Education products, initially for 10 years from January 2011. LEGO Education Europe will build on the strong distribution network currently operated by RM Group company DACTA. The new company will also establish an online LEGO Education community, supplying further support, training and materials for the products.
Earlier this year RM carried out the first LEGO Education installation in the UK, at Stockley Academy in Middlesex.
"Through DACTA, RM has already established a strong presence selling and supporting LEGO Education products in Europe, there's still plenty of opportunity for growth though," said Sweeney.
“Working together, RM and LEGO Education's objectives are to increase sales and to develop a more distinctive and valuable education offer. Both companies share similar values and a commitment to providing an excellent customer experience. I look forward to extending our relationship."
Jacob Kragh, president of LEGO Education, said: “LEGO Education products are gaining increasing recognition for supporting 21st century skills. When we were looking to provide more value to the education establishments who choose our products, it was clear that RM had a lot to offer. The RM Group is a leader in education solutions and, under RM's ownership, DACTA has clearly demonstrated its capabilities as a specialist distributor of our products."
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