RM: Year of transition 'going strong'

Firm expects H1 operating profit to be higher than comparable period last year due to strong start to the year

RM has reported a "strong" half year in its latest trading update as it completes its first six months without its PC building division.

The firm, which selected Misco as its hardware referral partner at the end of last year as it announced its exit from PC building and hardware sales, released a trading update to the London Stock Exchange, revealing that it expects its Education Technology division to be profitable.

Its statement said: “As expected, 2014 is a year of transition for the education technology division, following the decision announced in October 2013 to end the manufacture and sale of personal computing devices.

“Due to good execution of the restructuring plan it is now anticipated that the education technology division will be profitable in the first half of 2014, with higher hardware revenues, better inventory realisations and lower costs than planned.”

It also said its Assessment and Data Services, and Education Resources divisions are growing organically with "good margins".

As a result of the strong performance, the firm said it expects adjusted operating profit for the six months ending 31 May 2014 will be “higher than the comparable period last year”.

“The Board expects that the Group’s seasonal bias of profits towards the second half of the financial year will be much less pronounced than last year, but nevertheless now anticipates that adjusted operating profit for the year to 30 November 2014 will be materially higher than its previous expectations," the statement added.

RM’s interim results are due out in early July.