New York: 20:28 || London: 01:28 || Mumbai: 06:58 || Singapore: 09:28

Recommendations » UK

RM Group (LON:RM) report: 1H’10 trading in line with expectations

February 8, 2010, Monday, 14:55 GMT | 09:55 EST | 20:25 IST | 22:55 SGT
Contributed by Daniel Stewart & Company


By Daniel Stewart & Co

 

- Commenting on 1H’10 performance, RM reports that trading in the first quarter to 5 Feb. was “supportive of management’s expectations" as described at FY’09 results on Nov. 23rd’09. This comes with the customary caveat that its business remains highly seasonal (as work is concentrated in the second-half schools holiday period).


- RM highlighted its recent Essex BSF contract, on-screen marking contracts with the QCDA, and the development of a new Educational Resources division warehouse facility in Nottinghamshire.


- RM reported that of its ?25 bank facility (2013) some ?8.3m has been drawn down, whilst ?38m in annual working capital facilities is agreed for the year.


- RM trades on a 5.2x Sep’11 EVEBITDA, 11.0x PE.