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Annual Results

RM's unveils proposed acquisition after FY profit falls

07 February 2017 09:45

RM Plc has booked a FY statutory after-tax profit of £11.6m, from £15.0m, on lower revenue but with an improved dividend as it unveiled the proposed acquisition of Connect Group's Education & Care business.

RM's revenue fell 6% to £167.6m, but it hiked its paid and proposed dividend to 6p a share, up 20% from 5p.

The reduction in after-tax profit was primarily due to a property provision release of £2.4m in the prior year and a £2.1m charge in 2016 for restructuring and acquisition costs.

CEO David Brooks said 2016 was another year of delivering a solid set of results, in which RM had reported improved profitability and increased operating margins.

"We are also pleased to have announced the proposed acquisition of the Education & Care business of Connect Group," he said in a statement, noting a purchase price of £56.5m on cash- and debt-free basis.

"This acquisition, in combination with our existing RM Resources operation, would provide a number of strategic and operational benefits."

RM would also assume Education & Care's pension schemes, which reported a combined net liability of £7.9m.

At 9:45am: (LON:RM.) RM PLC share price was +24.5p at 169p

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