DJ RM plc: Half year trading update
RM plc (RM.)
RM plc: Half year trading update
24-Jun-2025 / 07:00 GMT/BST
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24 June 2025
RM plc
Half year trading update
-- Progress on improving profitability, on course to meet FY25 expectations
-- RM Assessment's platform revenue showing strong growth
-- Supportive agreement with lenders to extend existing GBP70m facility to July 2027
-- Triennial pension valuation for closed defined benefit schemes moves from deficit to surplus
RM plc ("RM", the "Company"), a leading global educational technology ("EdTech"), digital learning and assessment
solution provider, is pleased to provide a trading update for the six months ended 31 May 2025 ("H1 25").
Trading update
Adjusted operating profit in H1 25 is expected to be in a range of GBP0.7-0.9m (H1 24 restated[1]: GBP0.3m loss) with
adjusted EBITDA of GBP3.3-GBP3.5m (H1 24 restated: GBP2.4m)[2], reflecting continued progress on margin improvement and cost
control, with annual cost savings of GBP20m+ delivered to date. As in previous years, profit is largely weighted towards
H2, and RM remains on course to meet full year management expectations for adjusted operating profit and adjusted
EBITDA.
This strong profit performance comes despite H1 25 revenue being moderately lower year-on-year at GBP73.0-GBP73.5m (H1 24
restated: GBP78.3m), largely reflecting the impact of ongoing UK schools budget pressures and the delay of government
funding for key initiatives in Technology, as well as that of tariffs on TTS's US business, which accounts for circa 2%
of group revenues.
RM's Assessment division continues to be the Group's key strategic growth driver, and saw revenue increase on H1 24,
with core platform revenue up by 18% and total recurring revenue up by 20%. The contracted orderbook continued to grow
from its already record GBP95.7m at the end of 2024, thanks to further contract renewals and wins. Further strategic wins
are expected to land in H2, with Assessment revenue growth expected to offset the temporary decline in TTS and
Technology by the end of the year.
Extension of banking facility and net debt
The Company entered into discussions with its lenders to extend its current facility by a further year. The discussions
have now successfully concluded, and an agreement has been secured with the lenders to extend the existing GBP70m
facility to July 2027. In conjunction with the extension, the Company has reset its covenants including the extension
of the term of the quarterly minimum last twelve months ("LTM") EBITDA covenant tests to November 2026, along with the
leverage ratio and interest cover covenants. Other terms of the facility remain materially unchanged.
Net debt increased by GBP7.9m to GBP59.6m in H1 25 from the 2024 year end, similar to the GBP7.1m increase in the same period
last year. This is the combined effect of the normal business seasonal cash flow, with improved underlying EBITDA being
offset by the continued investment in RM's global accreditation platform, now branded RM Ava. RM Ava will allow the
Group to capitalise on the significant growth opportunities and the global shift toward digital assessment, enabling
revenue growth, sustainable profitability and cash generation. This, in turn, will support management's continued focus
on reducing net debt in the near to medium term.
Defined benefits pension schemes
In March 2025 the triennial valuations for RM's closed defined benefits pension schemes were completed. These
valuations, dated 31 May 2024, showed a combined technical provisions surplus of GBP10.5m, representing a marked
improvement on the 2021 valuations (deficit of GBP21.6m). As a result, no further contributions are required beyond the
remaining GBP1.8m from the 2023 agreement with the Trustee. In the longer term, the Group will work with the Trustee to
assess derisking strategies for the schemes.
Mark Cook, CEO, commented:
"I am pleased to report that RM continues to be on a strong trajectory following our FY24 results, with profitability
improving and increased momentum across our core Assessment business, despite less favourable market conditions in our
other divisions, as previously guided. We remain on track to achieve our targets for the year, and I am excited about
the new opportunities that the recent launch of RM Ava opens up for the business, our customers and learners globally.
Our lenders continue to be very supportive of our strategy as reflected by the latest extension of our banking facility
to July 2027. On top of this, the positive outcome of our defined benefits pension scheme valuation strengthens our
financial position moving forwards."
Contacts:
RM plc investorrelations@rm.com
Mark Cook, Chief Executive Officer
Simon Goodwin, Chief Financial Officer
Daniel Fattal, Company Secretary and investor relations
Headland Consultancy (Financial PR) +44 203 805 4822
Stephen Malthouse (smalthouse@headlandconsultancy.com)
Chloe Francklin (cfrancklin@headlandconsultancy.com)
Dan Mahoney (dmahoney@headlandconsultancy.com)
Notes to Editors:
About RM
RM was founded in 1973, with a mission to improve the educational outcomes of learners worldwide. More than fifty years
on, we are a trusted global EdTech, digital learning and assessment solution provider, transforming learners,
educators, and accreditors to be more productive, resilient, and sustainable. Our simple approach enables us to deliver
best in class solutions to optimise accreditation outcomes.
RM is focused on delivering a consistently high-quality digital experience, acting as a trusted consultative partner to
provide solutions that deliver real impact for learners worldwide. Our three businesses include:
-- Assessment - a global provider of assessment software, supporting exam awarding bodies, universities, and
governments worldwide to digitise their assessment delivery.
-- TTS (Technical Teaching Solutions) - an established provider of education resources for early years, primary
schools, and secondary schools across the UK and to ministries of education and independent institutions worldwide.
-- Technology - a market-leading advisor and enabler of ICT software, connectivity and technology and bespoke services
to UK schools and colleges.
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[1] Restated adjusted operating loss for H1 24 excludes GBP0.3m of Consortium losses from the reported loss of GBP0.6m,
following Consortium's closure in early FY24, and adjusted revenue from continuing operations in H1 24 excludes GBP0.9m
relating to Consortium.
[2] Restated adjusted EBITDA is an Alternative Performance Measure, stated after adjusting items. It has been amended
to exclude share-based payment charges. H1 24 EBITDA has been restated for this amendment (GBP0.3m SBP excluded) and
also excludes GBP0.3m of Consortium losses which have been reclassified as discontinued operations.
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The issuer is solely responsible for the content of this announcement.
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ISIN: GB00BJT0FF39
Category Code: TST
TIDM: RM.
LEI Code: 2138005RKUCIEKLXWM61
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State
Sequence No.: 393672
EQS News ID: 2159252
End of Announcement EQS News Service
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