RM simplifies its activities by closing the loss-making company Consortium

RM PLC said on Friday it had made the decision to close its loss-making business Consortium, part of the RM Resources division.

RM is a technology and resource provider to the education sector based in Abingdon, England. Its shares were down 9.0% at 47.34 pence each in London on Friday afternoon.

In August, when releasing its half-year results, RM said the focus in the second half had been on developing a strategic roadmap aimed at creating “a simpler, more profitable”.

The Consortium’s business is a “provider of educational supplies and resources for schools”.

RM explained that the Consortium experienced “a prolonged period of underperformance following the negative impact of the rollout of a new e-commerce platform in 2022”.

On this basis, the company has decided to take the “difficult” decision to close this activity from the end of December.

“The decision to simplify the business will enable us to better address macroeconomic challenges and build a platform for growth. Our 50-year heritage, leading market positions, intellectual property, expertise and deep knowledge of customer base mean that we are well positioned to capitalize on the structural drivers of the growing global information and communications technology industry and to meet the expectations of our stakeholders,” said Mark Cook, Managing Director of the ‘business.

But, at the same time, it is with regret that we have decided to close Consortium, a company with extremely talented and valued colleagues. Unfortunately, its underperformance is a drag the company can no longer afford and has overshadowed the good progress made elsewhere.”

RM plans to issue a trading update in December for its financial year ending November 30.

This article is originally published on zonebourse.com

Beth Malcolm

Beth Malcolm is Scottish based Journalist at Heriot-Watt University studying French and British Sign Language. She is originally from the north west of England but is living in Edinburgh to complete her studies.