Cuts in public spending are hitting the bottom line of educational specialist RM as the vendor revealed a pre-tax loss in its half-yearly numbers.
Budget cuts in both the US and UK hit RM as demand dropped for its products and trading conditions are set to remain challenging with little sign that the current focus on cutting spending will be reduced in the near-future.
For the six months ended 31 March the firm reported a pre-tax loss of £1.4m reversing last year's £1.2m profit. Revenue also fell by 15% to £133m and restructuring charges increased year-on-year by a million to £1.8m.
Terry Sweeney, chief executive at RM, said that the results were against a backdrop of difficult trading conditions provoked by the cuts in public spending.
"We experienced challenging market conditions in our core markets in the first half, as customers continued to respond to changes in policy and funding in both the UK and the US," he said.
He added that it had gone through a restructuring programme and trimmed its cost base, "to reflect the changed conditions and to protect group profitability".