RM plc ("the Group") issued a Trading Update and Strategic Review on 29 September 2011 stating that, after reviewing the Group's UK operations, the Board had decided to dispose of the access control and cashless catering systems part of the AMI business known as Easytrace.
The school network management part of the AMI business, known as Ranger, has been retained by RM Education Ltd. Easytrace is the sole remaining business in AMI Education Solutions Ltd.
The sale of AMI Education Solutions Ltd has now been completed on the terms set out below. This disposal continues the Group's strategic focus programme.
The sale of 100% of the issued share capital of AMI Education Solutions Ltd to Jonas Computing (UK) Limited has now been completed on 19th January 2012. The estimated consideration of £0.65m, which is subject to net assets at completion, is receivable in cash and this will be retained within the Group to meet operational requirements. In addition, the Group expects to receive approximately £0.5m of existing accounts receivable balances. In the UK, the Jonas group of companies includes Gladstone Computing, which also provides access control and cashless catering systems.
RM Education has ensured that its customers who use AMI products will continue to receive support services from AMI Education. RM Education will continue to sell Easytrace products under a non-exclusive reseller agreement.
Gross assets subject to disposal, being the Easytrace element of the AMI business, were £4.6m at 31 March 2011 (including £2.9m of goodwill and acquisition related intangible assets). The Easytrace element of the AMI business was loss making during the year to 30 September 2010 and continued to be over the fourteen month period to 30 November 2011
Following this disposal, the Group's strategic focus programme has resulted in the sale of:
(1) the hardware business of RM Group USA, LLC;
(2) RM Asia-Pacific Pty Limited;
(4) Minority interest in LEGO Education Europe; and
(5) the AMI business.