RM has seen disappointing growth over the last six months.
In its interim results for the six months ending 31 May 2022 the company said its adjusted operating profit fell 42 percent year on year to £5 million while margins fell from nine per cent to five percent.
Revenue was up four percent year-on-year to £100.3 million but RM had expected to do much better than that.
It said that performance was affected by delayed shipments in RM’s Resources division and challenges associated with the implementation of its new IT platform.
“The macroeconomic environment is challenging and together with IT implementation impacts, will dilute profit conversion in the short-term”, the business said in a statement.
While school funding is increasing in the UK, salaries, energy costs and inflation were creating headwinds that will impact school budgets and will need to be monitored carefully over the next 18 months.
RM said it was seeing positive customer demand for products and services.
It added that improving underlying sales momentum across divisions and phasing impacts of delayed shipments in RM Resources from H1 to H2 “supports positive revenue outlook”.
