(Alliance News) - RM PLC on Friday said it has taken the decision to close its loss-making Consortium business, part of the RM Resources division.

RM is a Abingdon, England-based supplier of technology and resources to the education sector. Its shares are down 9.0% to 47.34 pence each in London on Friday afternoon.

Back in August, when RM published its half year results, it said focus in the second half has been on the development of a strategic roadmap for RM to create "a simpler, more profitable business."

The Consortium business is a "provider of education supplies and resources to schools."

RM explained that the Consortium has experienced "an extended period of underperformance following the negative impact of the rollout of a new ecommerce platform in 2022."

Based on this, the company has decided to make the "difficult" decision to close this business from the end of December.

"The decision to simplify the business will enable us to better weather the macro challenges and build a platform for growth. Our 50-year heritage, leading market positions, IP, expertise, and deep customer knowledge, mean we are well positioned to take advantage of the structural drivers in the growing global EdTech industry and deliver for our stakeholders," Chief Executive Mark Cook.

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

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

By Sophie Rose, Alliance News senior reporter

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