Education supplier RM on course to top £200m revenue
Acquisition of education company The Consortium and strong international sales contributed to growth
Education sector provider RM anticipates a 16 per cent growth in revenue to £215.5m for its year ending 30 November 2018.
RM acquired Trowbridge-based care and education unit The Consortium for £56.5m from Connect in February 2017, and stated that revenues are now seeing the full benefit of the acquisition.
Strong international sales were another factor in revenue growth, the firm reported in a trading update.
RM - which ranked 16th in CRN's Top VARs 2018 - reported adjusted EBIT of £26m, up 22 per cent from 2017's figure of £21.3m.
The Consortium purchase was merged into RM's Resources division, which develops and supports curriculum resources.
Last year, RM reported that its Resources arm was driving more revenue than its legacy ICT division, RM Education, was.
It also has a third arm, Results, which provides management of marking for the education sector.
Both Resources and Results showed organic revenue growth, according to RM.
The firm claimed that its Education wing benefited from cost-improvement initiatives, enabling its profit margin to reach double-digit levels.
David Brooks, chief executive of RM, said: "It's encouraging to see the group's further progress and the positive performance in all three divisions."