Investor enthusiasm for RM (RM.) rocketed in February on the announcement of a major addition to its resources division. Since then, the shares have looked a little unloved. So news that organic growth in the resources division has smashed expectations and complemented the revenues brought in by the Consortium acquisition rekindled some of that excitement. The shares were up 17 per cent on the day of the trading statement and broker Numis upgraded its expectations for both the financial year to November 2017 and 2018.
Moreover, net debt has dropped down more quickly than previously expected. Numis thinks the year-end figure will now be £13.4m, rather than £19.6m thanks to good cost control, progress in sorting the Consortium’s pension deficit and better than expected trading.
