RM Plc (RM.L), a British provider of educational IT products and services, on Wednesday posted a preliminary pre-tax loss for 2022, amidst increased costs, challenges associated with the IT implementation project in its consortium business, and others.
Mark Cook, Chief Executive of RM, said, “RM’s performance in FY2022 was materially impacted by the challenges associated with the IT implementation project in our Consortium business. These challenges led to us having to take a number of actions, including suspending the payment of dividends…We now have a much more stable financial and operational position, including a renewed banking facility which will run until July 2025.”
However, the company registered a rise in preliminary revenue, driven by strong growth in RM Assessment and the TTS business in RM Resources.
For the 12-month period to November 30, 2022, the UK-based firm posted a pre-tax loss of 20.787 million pounds, compared with a restated profit of 3.618 million pounds in 2021.
Excluding items, pre-tax income moved down to 5.272 million pounds from the restated 15.101 million pounds a year ago.
Net loss for the year was at 14.499 million pounds or 17.4 pence per share, compared with a restated profit of 4.194 million pounds or 5 pence per share of previous year.
Adjusted profit for 2022 was at 5.102 million pounds or 6 pence per share, versus restated 13.819 million pounds or 16.4 pence per share of last year.
Operating loss stood at 21.586 million pounds as against last year’s restated profit of 3.587 million pounds. Adjusted operating income declined to 7.483 million pounds from restated 16.469 million pounds of 2021.
The company’s operating expenses were at 85.789 million pounds as against restated 63.634 million pounds a year ago.
For 2022, RM registered impairment losses of 2.236 million pounds, compared with zero impairment losses in 2021. Finance costs also moved up to 2.825 million pounds from restated 1.396 million pounds of previous year.
The company’s annual Revenue improved to 214.167 million pounds from previous year’s restated 206.149 million pounds.
Looking ahead, the company said, “The macroeconomic backdrop remains challenging with inflation continuing to put pressure on our own operations and on school budgets. However, RM now has the benefit of a stable operating and financial platform on which to focus more fully on rebuilding and optimising shareholder value from its portfolio and I am confident in the positive progress that will be made.”
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