RM – No, not the comfy chair!

(By Anthony Miller – Friday 15th March 2009 8:30am). You know, sometimes I really struggle with how companies design their ‘knitting’ patterns. RM basically started out as a supplier of software and IT services to the UK education market, but their ambitions have taken them much further and wider. I raised concerns earlier this week that they are spreading themselves a bit too thin (see RM – worthy cause deserves worthy profit). Today’s acquisition of furniture supplier Isis Concepts (see here) does nothing to allay my worries.

This is not RM’s first move outside of software and IT services. Indeed, they have made 16 other acquisitions since 2000, of which at least half-a-dozen have been in ‘education resources’. The most recent was just last month, Pisces Arts, which provides arts & crafts materials and specialist stationery to schools and local authorities across the UK.

I’m sorry, but I just think plots are being lost here. How can a company with annualised revenues under £300m at 5% operating margin (FY08) expect to be ‘all things’ to education departments in multiple countries? Where’s the focus?

RM’s core software is brilliant. This is its knitting. Why not stick to it?

By the way, can someone please offer RM some help with their website? The home page looks like it was designed by the cast of the Tellytubbies. Thank you.