RM Plc, Abingdon, Oxfordshire, formerly known as Research Machines, has performed well in its first six months on the London Stock Exchange. The flotation was nearly put off, as Misys Plc came in last December with an offer for the company. But RM thought that the Misys valuation of the company to be tawdry and sent the suitor packing (CI No 2,563). In the six months to March 31 the company recorded strong pre-tax profits of ú1.0m, a rise of some 572% on the same period last year, from turnover up 17% at ú33.6m, which was more than the value Misys put on the company. However, RM’s results in the past have followed a regular seasonal pattern, with 95% of pre-tax profits coming in the second half. This year’s first half was noticeably different, having been boosted by an unusually strong order book back in September. During the period, RM announced its first acqusition, that of Key Solutions Ltd for ú1m up front and an earn-out that could amount to a further ú1m by 1998 (CI No 2,648), depending on performance conditions being met. The Otley, West Yorkshire company supplies management and administration software to schools. RM won a ú1.7m contract in March to supply its Multimedia Classmate personal computers in a government-funded scheme to promote the use of multimedia in schools. It also reports the continued success of the Window Box range of products. In terms of the future, the educational specialist has high hopes of its Internet for Learning service, which has connected more th an 300 schools to the Internet so far. It has also just announced Eduweb, a World Wide Web service to which teachers and pupils can contribute via the Internet for Learning software. As with many Internet services, it will be some time before RM makes any money out of it. Also being developed is the SuccessMaker integrated learning system, which following governent-sponsored pilot schemes, is being used in over 30 local education authorities. Again, it will a while before it contributes towards profits. The directors were not prepared to make any forecasts, other than that they are confident for the second half. RM will pay a maiden interim dividend of 1.5 pence.
