LONDON (ShareCast) - Education services group RM saw revenues for the full year ended on November 30th, excluding exited businesses, drop by 8.4 per cent.

Despite the above, adjusted profits before tax increased by 36% to reach £16.4m, alongside improving cash flows from operations and a large jump in the amount of cash on hand at year end.

Cash generated by operations improved £34.7m from £33.5m in 2012.

At year end cash and short term deposits stood at £63.2m, up from £37.8m last year.

Cash and cash equivalents were at £57.2m. Analysts at Numis had been expecting levels of net cash to be at £46m.

The company has proposed to its shareholders a 10% increase in its full-year dividend to 3.3p.

A further special dividend of 16p per share has been proposed.

David Brooks, Chief Executive of RM, said: "The repositioning of our Education Technology division towards software and services is on track. Looking forward, these changes will have an impact in 2014, but will provide us with a more robust business in 2015 and beyond. Assessment and Data Services and Education Resources are expected to continue to perform well in the year ahead."

As of 11:41 shares of the firm were rising by 8.81% to 125p.

AB

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