RM’s profits up 20%

RM has announced interim results for the six months to 31 March 2010.

Its operational headlines are:
Strong revenue growth in Education Resources, BSF and US
An “excellent project win rate” including seven BSF project awards year-to-date
Committed revenues at May 2010: £505m (May 2009: £425m)
Revenue is up 10% (£156.4m, compared to £141.9m for 2009)
Profit before tax is up 20% (£1.2m, compared to £1.0m for 2009)

Commenting on the results, Terry Sweeney, chief executive of RM, said: "We've executed well so far in 2010. Group revenue is up, with a particularly strong performance from Education Resources and long-term committed revenues now stand at £505m, including seven new BSF project wins.

"Sales momentum continues across the business and we have seen good progress in each of our divisions. We anticipate further progress in the second half and growth for the year as a whole.”

RM has also agreed with Lego Education to create a joint venture which will become the exclusive distributor of Lego Education products to education customers across Europe.

Lego Education Europe (owned 51% by the Lego Group and 49% by RM, with day-to-day operational activities provided by RM's Education Resources division) would hold exclusive European education distribution rights for Lego Education products, initially for ten years from January 2011.

Terry Sweeney said: “RM and Lego Education's objective is both to increase sales and to develop a more distinctive and valuable education offer. Both companies share similar values and a commitment to providing an excellent customer experience. I look forward to extending our relationship.”