Education supplier RM upbeat despite coronavirus impact

Trading update reveals firm stayed profitable in H1

Education tech supplier RM says it has remained profitable in its H1, despite the coronavirus outbreak shuttering schools.

The firm did not reveal any numbers, but said in an update to the stock exchange that it expects trading to improve as schools begin to reopen.

It also said that its board and executive teams have taken pay cuts of 25 per cent and 20 per cent respectively.

David Brooks, Chief Executive of RM, said: "In the short term, RM's focus is on continuing to provide our products and services safely to our customers.

"Looking further ahead, as schools re-open and exam boards restart assessments, RM will play a key role in helping to get education systems back on track and adapt to the new environment."

RM said that net debt stood at £14m as of 31 May 2020, down from £21m at the same point last year.

It declined to give an outlook on the second half of the year, saying the situation is too fluid, but said that "the board remains confident that the resilience of the business and the actions taken to conserve cash, alongside our credit facilities, provide RM with a platform to successfully manage through the current uncertainty".

RM has revolving credit facility of £70m, which has also had its net debt leverage covenant increased from 2.5x to 3.5x for 2020.

The firm also said it has implemented a "significant reduction in discretionary spend".