RM posts double digit revenue, profit growth for FY

UK's RM Plc, a provider of education services, reported double digit revenue and profit growth in 2010, and it lifted its full year dividend by 8 percent to 6.64 pence.

The company, which operates in three divisions: Learning Technologies, Education Resources and Assessment and Data Services, said it made good progress on nearly all of its key performance indicators.

Education Resources grew most rapidly and now represents 22 percent of revenue, while Building Schools for the Future (BSF) represented 14 percent of revenue.

Our successful diversification strategy has allowed the group to achieve this excellent outcome, which demonstrates the underlying resilience of our business. Continued growth in our higher margin segments, combined with greater focus on cost control, mean that we approach the year ahead with confidence, chief executive Terry Sweeney said.

For the year ended Sept. 30, adjusted operating profit, the company's preferred measure of profit, grew 12 percent to 19.9 million pounds. Pretax profit, including an exceptional pension credit, increased 47 percent to 23.9 million pounds.

Revenue rose 10 percent to 380 million pounds ($610 million), with 13 percent of revenue outside the UK. The US business accounts for 7 percent of revenue and the Asia Pacific region for 2 percent.

At the year-end, committed revenue fell to 385 million pounds from 419 million pounds in the year-ago period, largely reflecting the Government's review of the BSF scheme, which resulted in a number of school rebuild projects either being scaled back or cancelled.

Shares of RM ended Friday's regular trading session at 150 pence on the London Stock Exchange.