RMS hiccup dents DMGT profits

The delayed implementation of RMS’ flagship product, RMS(one),  has hit the profits of parent company, Daily Mail and General Trust (DMGT).

This is according to its full year results, ended September 30, 2014.

Profits within its risk modelling agency, Risk Management Solutions (RMS), fell to £45 million for the year, compared with £57 million in 2013.

Martin Morgan, chief executive of DMGT, said: “Our international B2B companies have increased their underlying revenues and profits by 8 percent. We took a difficult decision in the year to delay the launch of RMS(one), although we are confident that the new programme of staged releases to a small number of clients during 2015, with availability to a broader client base towards the end of the year, will benefit the business in the long-term.

“Following the delay, there was an impairment of the RMS(one) asset value in the year. In addition, the increase in RMS's costs, ahead of RMS(one) revenues being generated in 2016, will adversely impact DMGT's profits in 2015.”

“The business will, however, continue to invest in RMS(one) with no significant revenues expected from this new product until FY 2016. Consequently, RMS as a whole is expected to deliver underlying revenue growth in the low single digits but with a reduced margin of around 10 percent to 15 percent in FY 2015.”