RM (RM.)

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A leading education resources, IT software and services group engaged in supplying products, services and solutions to the UK and international education markets.

7-Dec-2017 – 161p – £133.1m – PER 7.48

Trading Update – “Expects results for the financial year ended 30 November 2017 to be ahead of expectations”.

This stock ticks a lot of my boxes, it’s going on my Watchlist, may even take an opening position here this morning as it seems reasonably priced even at this level.

Subsequently revised Watchlist price, 165p.

6-Feb-2018 – 187.5p – £155.0m – PER 8.50

Results For The 12 Months To End November 2017 –  Revenue up 11% to £185.9m, Adjusted Operating Margins up 11.9% and PBT up 10.3% to £12.9m (2016: £11.6m). Net debt is £13.4m (2016: Net Cash of £40.0m) following an acquisition. Pension Deficit down to £20.2m (2016: £34.8m) and the FY Dividend is up 10% to 6.60p.

Still like this and it remains on my Watchlist at 165p.

3-Jul-2018 – 225p – £186.0m – PER 9.44

Interim Results For The 6 Months To End May 2018 – Revenue +33.1%, Adjusted PBT +25.9% and Adjusted EPS +7.4%. The Interim Dividend is up 15% and the board is confident of at least meeting FY expectations.

I still like this and am going to revise my Watchlist price to 200p, may even consider paying up some time this month – On a PER of 9.44 it seems decent value.

Subsequent note: Further research and my view is this is over valued at present – So, I am going back to Neutral here.

11-Dec-2018 – 184p – £154.3m – PER 7.57

Trading Update For The 12 Months To End November 2018 – Expects results to be slightly ahead of expectations.

On a PER <8 with what seems like double digit Revenue and EPS growth plus a 4% or so yield I will be keeping an eye out here for updated Broker notes here.

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