Delayed platform rollout to hit profits at RMS

Risk modelling agency RMS has delayed the rollout of one of its flagship products until next year in a move that will hit the company’s profits, its parent company has revealed.

RMS(one), RMS’ real-time exposure and risk management platform, will not be released until 2015. This will see the company incur a number of costs as a result.

In a pre-closing update, RMS’ parent company, the Daily Mail and General Trust, said: “There is now a revised plan being implemented which will result in a programme of incremental deliverables to joint development partner clients during 2015.

“Following the revisions to the timing of RMS(one) releases and the anticipated phasing of client adoption, there will be a material impairment to the c.£85 million carrying value of the asset in the current financial year.”

The group added there will also be approximately £5 million of additional operating costs due to the delayed launch. Consequently, adjusted operating profit for the current financial year is expected to be at the bottom end of market expectations.

A further update on the broader release plan will be made in early 2015. At a minimum, RMS(one) intends to deliver RMS's first high-definition models to the broader client base by late 2015.