RM (LON:RM) shares rallied yesterday as the company announced increased profits and dividends per share, following the acquisition of Consortium.
Consortium was bought for £56 million in February, and has since contributed £24 million to the RM’s revenue. The transaction was designed to be earnings accretive, and indeed, the firm’s profit increased 47 percent in the first half, with Ebitda jumping from £3.8 to £6.9 million. Revenue also increased from £71.3 to £94.9 million between this year and last year, alongside dividends which grew 15 percent from 1.65p to 1.9p.
“RM Resources continues to grow in international markets, has achieved growth in the UK and the integration of The Consortium acquisition is progressing as planned. RM Results is gaining traction internationally with three contract wins and RM Education continues to reposition itself with a lower cost base and improved operating margins,” said RM Chief Executive David Brooks.
“This progress, together with a strong balance sheet, has enabled the board to increase the interim dividend by 15% and the board is confident of at least meeting full year expectations”.
Revenues in the first half have increased for all three of the company’s divisions – RM Resources, RM Education and RM Results. Analysts from Peel Hunt and Numis have reiterated their ‘buy’ stance on RM stock, as the company’s share price was up 6.7 percent at 240p, as markets closed yesterday.
