In September 2011 RM announced a major restructuring of its operations and the disposal of non-core businesses following a strategic review of the company. The restructuring saw the departure of CEO Terry Sweeney and almost one in four employees compared to 12 months earlier. In February 2012 the scale of RM's problems were revealed when the companyreported a pre-tax loss of £23.4m (2010: £23.9m profit – 12 months) for the 14 months ended 30 November 2011 on revenue down from £380.1m in FY10 to £350.8m in FY11.
RM's decline was brought about by the impact of reductions in UK public sector...
M&A activity across the education industry slowed down in Q1 2012, according to the latest Assignment Report Education Industry Deal Review, published today by Meissa. To receive a copy sign-up to a free two-issue trial to The Assignment Report at www.theassignmentreport.com before 30 April 2012.
In the US, the stand-out deal of Q1 2012 was PLATO Learning’s $291m acquisition of Dallas-based Archipelago Learning, a provider of online subscription-based content and assessment products for preK-12 students.
The principal deal in the UK during the first quarter 2012 was Investcorp’s...
February was a good month for the share prices of UK companies with all or a significant part of their business derived from the education sector (see table). A major contributory factor was the annual results posted by seven of the listed companies covered by The Assignment Report's Monthly Sharewatch, published today.
Leading the way was Pearson who reported a 7% increase in revenue at its education business to £4.4bn in FY11 and an adjusted operating profit up 12% to £755m. And even those companies posting falls in revenue and profit were upbeat about the current year.
RM, the bellweather...
December 2011's issue of the Assignment Report is now available. Included in this month’s issue:
Half-year operating profit down 80% at Findel’s education supplies business.
Mouchel agrees revised banking facilities.
Pearson to acquire Global Education and Technology for $155m.
Potential buyers circle the College of Law.
Wey Education pulls out of acquisition of Place Group.
PWC seeks buyers for NEC and other LSN businesses.
Knewton to integrate its platform with Pearson’s HE content and courses.
Archipelago Learning integrates EducationCity’s US operations.
Last month saw further acquisition activity across the education sector in the UK and US including Cox & Kings £312m purchase of education and activity tour operator Holidaybreak, EduTone's acquisition of Global Grid for Learning from CUP and Providence's $1.64bn acquisition of Blackboard. Half year results from Pearson and Promethean reflected challenging conditions in the US and a profit warning from RM and half year results from Electric Word confirmed that the UK education market remains tough. Further analysis is available in the August edition of The Assignment Report
Issue 71 of The Assignment Report has been published. This month’s issue includes news of Pearson’s proposed acquisition of Education Development International, RM’s £5m cut in its cost base due to the “challenging education market” and an analysis of the year-end results of over 20 companies. For more information visit www.theassignmentreport.com
Issue 67 of The Assignment Report has been published. This month’s issue includes an analysis of RM and EDI’s latest results and news of a further fall in sales at Findel’s education business. For more information visit www.theassignmentreport.com
The Assignment Report is the leading market intelligence subscription newsletter for the UK education industry. Published monthly since 2005, the Assignment Report provides an in-depth analysis on the companies operating throughout the sector.