RM PLC Trading update and impact of COVID-19 (7155G)
March 19 2020 - 3:00AM
UK Regulatory
TIDMRM.
RNS Number : 7155G
RM PLC
19 March 2020
19 March 2020
RM plc - Trading update, impact of COVID-19 and cancellation of
final dividend
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/ 2014. For the purposes of
MAR and Article 2 of Commission Implementing Regulation (EU)
2016/1055
RM plc ("RM") is a leading supplier of technology and resources
to the education sector.
RM notes the announcements from UK government that all schools
and colleges will be closed for an indeterminate period and
examinations cancelled in response to the outbreak of COVID-19. A
closure of this scale, in addition to broader international
closures and travel restrictions, will inevitably impact trading
for the companies in the Group.
To date, trading has been broadly unaffected and RM's priority
has been to work closely with its customers and employees to plan
for different possible scenarios. Whilst the evolving situation
remains uncertain, the Board is evaluating a number of actions to
balance the conservation of cash with the long-term needs of the
business. Given the need for prudent cash management, the Board has
taken the step to recommend the withdrawal of the proposed final
dividend at the forthcoming Annual General Meeting on 26 March
2020. Accordingly Resolution 2 will no longer be put to the
shareholders and the proposed final dividend of 6p per share will
no longer be paid.
The Group enters this period of uncertainty in a robust
financial position with a committed credit facility of GBP70m (net
debt was GBP30.0m as at 29 Feb 2020). A material impact on trading
is anticipated in the coming months and on financial performance
for the full year, but the effects are difficult to quantify at
present.
David Brooks commented: "As a market leader, RM's products and
services underpin the national education system and the Board
remains confident of the Group's fundamental resilience and ability
to pay dividends in the future."
The person responsible for arranging the release of this
announcement on behalf of RM is Mark Lagler, Company Secretary of
RM.
Contacts:
RM plc 08450 700 300
David Brooks, Chief Executive Officer
Neil Martin, Chief Financial Officer
Mark Lagler Company Secretary
Headland Consultancy 0203 805 4822
Stephen Malthouse, Abena Affum
Notes to Editors:
RM plc is a leader in the education sector, providing support
throughout the stages of education
with its three focused divisions:
-- RM Resources is an established provider of education
resources for early learning centres, primary schools and secondary
schools across the UK and internationally. Our brands, TTS and
Consortium, develop and supply resources to help bring the
curriculum to life for teachers and students.
-- RM Results is a world-leading provider of e-Assessment
services, enabling e-marking, e-testing and the management and
analysis of educational data. RM Results marks approximately 200
million exam pages, working with prominent exam providers,
professional bodies, universities and governments.
-- RM Education is a market-leading supplier of ICT software,
technology and services in the UK. It helps schools save time and
money, create a secure environment and enables them to enhance
teaching and learning.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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