RM PLC (LON:RM) had lost nearly a third of its value by midmorning, with its shares down 32.5% to 66.8p after the education resource and technology provider reported a 42% drop in its adjusted operating profit to £3.6mln for the six months ended May 31, 2022.
The company put the operating profit plunge put down to a "required turnaround" in its RM Technology division, impacts associated with its IT implementation programme, and increased freight costs in RM Resources.
Statutory losses after tax totalled £5.9mln, swinging from a £2mln profit a year ago, due to lower operating profits and higher expensed investment programme costs of £7.7mln, up from £3.4mln. It did post a 4% improvement in first-half revenue to £100.3mln, driven by growth in RM Resources and the return of UK school exams in RM Assessment.
RM's board said the implementation of its new IT platform was proving "more challenging than anticipated", leading to extended timelines and increased project costs.
9.20am: Power Metal rises as preparations for diamond drill programme at the Molopo Farms Complex project advance
Shares in Power Metal Resources PLC rose 8.35 to 12.625p in early trading on Tuesday after the firm said preparations for a diamond drill programme at the Molopo Farms Complex project in Botswana are advancing and a start date will be announced shortly.
Last week, the company said an electromagnetic survey at Molopo Farms, which has the potential to be a large-scale nickel-platinum group element project, confirmed one of the drill holes (K1-6) had penetrated the edge of a newly identified magnetic conductor.
The company said the expedited diamond drill programme will target the core of the new conductor, immediately south of K1-6, with multiple drillholes planned of varying positions to maximise the discovery potential of the programme.