Leading schools ICT supplier RM is staying clear of the credit crunch with record revenues buoyed by its success in the Building Schools for the Future programme. This week it announced its preliminary financial results for the year until September 30. Revenue was up 7 per cent, from 2007's £270.9 million to £289.5m, adjusted* (see below) profit before tax up 6 per cent from 2007's £15.5m to £16.4m. Profit before tax was £15.4m (£18.4m in 2007).
RM's BSF win rate - by value - was an impressive 49 per cent of the contracts it bid for during the year, and the company saw a 51 per cent growth in revenue from education resources. International revenue nearly doubled.
“2008 has been a very good year for RM," said RM chief executive Terry Sweeney. "We’re announcing results that are in line with our original plan for the year, even after increased BSF investment. In BSF, we won half of the contracts that were available in the year and, since year-end, we’ve had further success. Our education resources business has grown by 51 per cent, and our international activities have nearly doubled in size and now contribute 6 per cent of revenues.
“We operate in a resilient market. Education is a priority for the developed and developing world and, in the UK, which still represents the majority of revenue, customers have three-year visibility of budgets. RM is a financially strong group of companies. Committed revenues have increased further this year and we have a strong balance sheet and committed bank facilities in place. With our experience and deep educational knowledge there are opportunities ahead for all of our businesses.”
* "Adjusted profit is before amortisation of acquisition related intangible assets and, in 2007, an exceptional pension credit of £3.5 million"
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