A trading update from RM (RM) lifted the group’s shares by more than a tenth.
What inspired such glee among investors? Management expects results for the year ending November to be “slightly ahead of expectations”. Revenues rose significantly year on year, buoyed by the full-year gain from the acquisition of Consortium and strong international sales growth.
The resources and results businesses both enjoyed organic revenue growth, and the education segment’s profit margin entered the double-digits – supported by “cost improvement initiatives”. Meanwhile, the company’s net debt declined from £7m to £6m.
For house broker Numis, the shares are “materially undervalued”. Analysts here have upgraded their operating profit and EPS forecasts for the 2018 financial year by around 3 per cent, taking the former to £26.8m from £26m, and the latter to 24.3p from 23.5p.
