RM PLC (LON:RM.) shares rose sharply in mid-morning trading Tuesday after it hiked its interim dividend in half-year results following a jump in revenue based on the integration of its acquisition of The Consortium.
The education software group reported an adjusted pre-tax profit for the period of £7.6mln, up from £6mln in the same period last year, while revenues climbed to £94.9mln from £71.3mln.
The firm also raised its interim dividend by 15% to 1.9p.
The group said that the jump in revenue had been driven mainly by its acquisition of The Consortium, an education supplies company, which provided an extra £24mln to the balance sheet.
Despite the jump, the group said its onscreen exam marking and ICT software divisions had suffered revenue declines of 8.6% and 2.6% respectively over the period, although adjusted operating profits had remained flat for exam marking and rose by 16.1% for ICT software.
David Brooks, chief executive of RM, said: "The first six months has seen good progress in each of the three divisions. 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.
He added: “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.”
RM shares were up 6.6% at 240p.
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