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RM PLC on Wednesday said it swung to a full-year loss due to increased costs and inflationary pressure, and it scrapped its dividend to help stabilise its financial position.
The Oxfordshire, England-based IT products and services provider reported revenue for the year ended November 30 of £214.2 million, increasing 3.9% from £206.1 million in financial 2021. The revenue increase was driven by growth in RM assessment and its TTS business.
It reported a pretax loss of £20.8 million, swinging from a profit of £3.6 million the year prior. The company said the swing to a loss was due to increased IT implementation costs, and inflationary impacts on international freight costs.
The company did not declare a dividend, compared to the payment of a 4.7 pence per share dividend in 2021, noting that reinstating the dividend is a ‘key milestone on [its] recovery path’.
Chief Executive Officer Mark Cook said: ‘RM’s performance in FY2022 was materially impacted by the challenges associated with the IT implementation project in our Consortium business. These challenges led to us having to take a number of actions, including suspending the payment of dividends.’
‘I recognise that there is much to be done to rebuild value for our stakeholders, but I’m pleased to report that we now have a much more stable financial and operational position, including a renewed banking facility which will run until July 2025.’
The company has restructured its £70 million banking facility, which now extends to July 2025.
RM shares rose 8.5% to 70.50 pence each in London on Wednesday afternoon.
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