Educational specialist RM has issued an update on trading for the first half of the year revealing it is on track...
to meet its expectations as the public sector continues to keep spending.
Last month the company issued an interim management statement which revealed that its public sector customers had not curtailed spending and this latest investor's update said that continues to be the case.
It added that the second half of the year was usually strong because of school spending.
"RM is a seasonal business, reflecting buying patterns in the schools market: the majority of revenues and an even greater proportion of profit occur in the second half of the group's financial year," it stated.
Terry Sweeney, chief executive of RM, said that its long-term contracts, particularly Building Schools for the Future deals, were important to the company.
"We anticipate strong revenue growth in the first half of 2009, reflecting previous investment in BSF bidding," he said.
The supplier also revealed that it had taken a £400,000 hit because of its decision to restructure its software business into Lightbox Education, which landed a two-year contract with the Department for Children, Families and Schools earlier this month.
This story originally appeared on Microscope.