DJ RM plc: Interim Results
RM plc (RM.)
RM plc: Interim Results
14-Jul-2026 / 07:00 GMT/BST
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14 July 2026
RM plc
Interim Results for the six months ended 31 May 2026
Transformation programme continues to yield financial improvement
RM plc ('RM', the 'Company'), a leading global educational technology ('EdTech'), digital learning and assessment
solution provider, reports its interim results for the six months ended 31 May 2026.
Financial highlights
GBPm HY26 HY25 Variance
Revenue from continuing operations 70.1 73.2 (4.2)%
Loss before tax from continuing operations (2.9) (4.3) 32.6%
Statutory loss after tax (2.0) (3.3) 39.4%
Diluted EPS from continuing operations (2.1)p (4.0)p 47.5%
Adjusted performance measures:1
Adjusted operating profit from continuing operations 2.7 0.9 200.0%
Adjusted EBITDA excluding share-based payments 5.2 3.5 48.6%
Adjusted profit/(loss) before tax from continuing operations 0.0 (2.4) n/a
Adjusted diluted EPS from continuing operations (0.0)p (2.0)p n/a
Adjusted net debt2 59.3 59.6 0.5%
-- Adjusted operating profit from continuing operations has increased by 200.0% to GBP2.7m (HY25: GBP0.9m) andadjusted EBITDA by 48.6% to GBP5.2m (HY25: GBP3.5m), reflecting the continued benefits of the transformation programmedelivering further cost savings, and an increase in core recurring Assessment revenue.
-- Revenue from continuing operations is down by 4.2% to GBP70.1m primarily due to the ongoing challengesfacing the UK schools' market impacting the Technology division.
-- Core recurring revenue in Assessment3 has increased by 7.3% despite overall Assessment revenue being flatat GBP20.5m (due to a high level of one-off project work last year).
-- Adjusted net debt of GBP59.3m is broadly the same as in HY25, with a further GBP3.7m invested during HY26 inRM Ava, our adaptive virtual accreditation platform, taking the cumulative amount spent to GBP13.5m out of the totalGBP20.0m investment. The Company has extended its bank facility to 5 January 2028.
-- Movement in adjusted diluted EPS from continuing operations due to smaller loss after tax.
Assessment
-- Recurring revenue, now GBP19.0m (HY25: GBP17.7m), makes up 92.7% of Assessment revenue (HY25: 86.3%).
-- 100% of Assessment's revenue up for renewal during HY26 has been successfully renewed, continuing thetrend of being able to retain strategic customers.
-- Assessment's adjusted operating margin has increased to 25.9% (HY25: 17.6%) reflecting a continuation ofmargin improvement through cost savings, operational efficiencies, and an increase in core recurring revenue.
-- Pipeline of opportunities has grown by more than 100% compared to a year ago with RM now targetingmulti-year government sponsored digital accreditations as well as more professional qualifications.
-- On track to invest a further GBP6m in FY26 in the development of our strategic RM Ava platform, in linewith equity raise commitments, which will drive future growth.
-- Separation work is progressing well with the Assessment business now a separate legal entity and havinggone live with its new standalone ERP, Sage X3.
TTS
-- TTS has continued to focus on product development, introducing 67 new own-IP products in HY26,maintaining its key differentiation factor.
-- Sales were slightly down by 3.6% to GBP29.6m (HY25: GBP30.7m) owing to the war in the Middle East havingimpacted international orders, and a strategic decision not to apply a site wide discount unlike in HY25, toprotect margin.
-- Reflecting our pricing strategy, alongside efficiency measures, divisional contribution is 16.7% higherthan in HY25.
Technology
-- Revenue down 9.1% at GBP20.0m (HY25: GBP22.0m), reflecting the continuing challenges in the UK schools'market with school budgets constrained.
-- The division has, nevertheless, continued to win and renew contracts which provide recurring revenues foryears ahead.
-- Connect the Classroom government initiative has progressed more slowly than expected although we remainhopeful that this initiative will soon be reinstated.
Current trading and FY26 outlook
-- RM remains on course to meet full year market expectations for adjusted operating profit ("AOP") andadjusted EBITDA.4
-- A greater proportion of AOP than previously expected for the full year to come from our core Assessmentdivision.
-- Revenue is expected to be slightly down on FY25, as a result of the challenging market and macroeconomicheadwinds impacting Technology and the short-term impact on TTS caused by the war in the Middle East.
-- Strategic priority remains to materially reduce net debt and scale high growth Assessment business.
Mark Cook, Chief Executive of RM, said
"It is very pleasing to see positive progress across our core Assessment business with recurring revenue and profitability increasing. The foundation for this has been laid by progress made with the strategic initiatives we communicated as part of the equity raise last year, namely the separation of our divisions and the continued investment in our RM Ava platform. We are excited by the opportunities that building RM Ava has created, not only within education but also through government sponsored digital accreditations and our continued expansion into global professional qualifications.
Reducing our debt through the disposal of non-core assets remains a preeminent focus of the Board. I will provide an update on any significant progress at the appropriate time."
Notes
1 Throughout this statement, adjusted operating profit, adjusted EBITDA excluding share-based payments, adjusted loss before tax and adjusted EPS are Alternative Performance Measures, stated after adjusting items (see Note 4) which are identified by virtue of their size, nature and incidence. The Group reports adjusting items which are used by the Board to monitor and manage the performance of the Group, in order to ensure that decisions taken align with the Group's long-term interests. The treatment of adjusted items is applied consistently year-on-year.
2 Adjusted net debt is defined as the total of borrowings less capitalised fees, cash and cash equivalents and overdrafts. Lease liabilities of GBP17.2m (30 November 2025: GBP15.0m) are excluded from this measure as they are not included in the measurement of adjusted net debt for the purpose of covenant calculations.
3 Recurring revenues in Assessment is made up of digital platform revenue and third-party scanning and excludes one-off project work.
4 Prior to this update, the Company believes that market expectations for FY26 adjusted operating profit and adjusted EBITDA were GBP13.6m and GBP19.0m, respectively.
Presentation details
A presentation by Management for investors and analysts will be published on the company website later this morning at https://www.rmplc.com/.
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
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 are:
-- Assessment - a global provider of assessment software, supporting exam awarding bodies, universities, andgovernments 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 114 countries internationally.
-- Technology - a market-leading advisor and enabler of ICT software, technology and bespoke services to UKschools and colleges.
Chief Executive's Statement
Overview
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During the first half, we have continued to increase RM's profitability with adjusted operating profit up by 200.0% from HY25 to GBP2.7m (and adjusted EBITDA up by 48.6% to GBP5.2m). This reflects the benefits of the transformation programme, including simplification and the separation of our divisions, delivering further cost savings, and an increase in core recurring Assessment revenue. Revenue is down by 4.2% to GBP70.1m, primarily due to challenges faced by the Technology division (see below). While Assessment revenue is flat due to a higher level of one-off project work in last year's comparative figure, I'm pleased to report that recurring revenue in Assessment has grown by 7.3%. We have continued to win new Assessment customers including two in the professional qualifications space. Complementing this was our high customer renewal rate of 100% in H1, following a similar trend in the last two financial years.
Technology revenue fell 9.1% to GBP20.0m reflecting a continuation of the challenges facing the UK schools' market, while TTS was slightly down by 3.6% to GBP29.6m as international sales were impacted by the war in the Middle East. This underpins the Board's strategy to focus on and grow its Assessment business which offers both significant growth opportunities and relative resilience to macroeconomic shocks.
I was clear in our FY25 year-end announcement that we are actively working on the disposal of non-core assets to materially reduce debt. I will provide updates on any significant progress when we are in a position to do so. Last October's equity placing has accelerated our progress in separating the divisions and we recently went live with Sage X3 as our new separate enterprise resource planning system for Assessment. Further detail on how the proceeds from the equity raise have been deployed is set out below.
Net debt is marginally lower at GBP59.3m (HY25: GBP59.6m) while we have continued to invest in RM Ava, our adaptive virtual accreditation platform. Our lenders remain supportive of our strategy, and we have extended our bank facility to 5 January 2028.
Use of the equity raise proceeds
As detailed in our FY25 annual report, we raised GBP12.7m (net of fees) last October to be used to do four things:
-- Complete the separation work required to facilitate disposals of non-core assets;
-- Strengthen RM Ava and accelerate its development;
-- Invest in RM Assessment's sales and marketing capability; and
-- Manage general working capital purposes.
We have invested in each of these areas. Separation work includes each division now having its own separate legal entity. We have also transferred the closed defined benefits pension schemes from the trading subsidiaries to RM plc as sponsor, gone live with a new standalone ERP system (Sage X3) for Assessment and corporate services, and made other IT system changes to increase flexibility and reduce costs. While there are one-off costs associated with these changes, they unlock future cost savings and provide necessary flexibility to carry out our strategic goals.
We have continued to invest in our single, cloud-based platform, RM Ava. We are approximately 65% through our strategic investment in Ava, digitising the full end to end assessment process; authoring exams, taking them, marking and grading. Advantages of full delivery of the new platform are modularity and scalability as well as a step change in the customer and candidate experience and increased market leading functionality. Investment was approximately GBP6m in FY25 with a further GBP6m being invested in FY26. This will continue to see us introduce new capabilities that align with our customers' needs later in FY26 such as the reporting and analytics module, delivering deeper insights across the entire assessment lifecycle. Crucially, building Ava allows RM to enter into a whole new Target Addressable Market, ("TAM") due to its flexibility to scale. This goes beyond the general qualifications market, our traditional stronghold, and includes more professional qualifications along with larger, multi-year government sponsored digital accreditations.
Our sales and marketing capability in Assessment has been strengthened by recruiting talent with more than two decades of experience working in education. This will support us in achieving our new business targets with our pipeline of opportunities having more than doubled since HY25, driven in part by the additional TAM I have outlined above.
Finally, a portion of the fundraise proceeds has helped with our inherently challenging working capital cycle which encompasses the bulk of our customer receipts arising during concentrated periods, rather than consistently throughout the year. We have initiated plans to address this over time such as introducing a more evenly spread customer invoicing pattern as part of contract renewal discussions.
Divisional performance
Assessment
Total Assessment revenue for the half year is GBP20.5m, consistent with HY25. Excluding one-off project work, Assessment's recurring income, comprising core digital platform revenue and third-party scanning, increased by 7.3% to GBP19.0m (HY25: GBP17.7m). This reflects our strategy of growing Assessment's recurring revenue through long-term contracts, now representing 92.7% of the division's total sales (HY25: 86.3%). Assessment's operating margin has increased by 8.3% in HY25 to 25.9% in HY26 due to further cost savings and efficiencies, and the higher amount of core recurring revenue.
Our customer renewal rates remain very high with 100% of the revenue up for renewal in H1 having been successfully renewed and we have already received positive indications from customers who expect to renew with us in H2. This reinforces the sticky nature of our digital platform revenue in Assessment, built on years of developing relationships and delivering unparalleled assessment solutions. Equally pleasing is that we have won three-year contracts with two new customers in the professional qualifications space, which is a key area of expansion for assessment. We will be supporting both customers with the delivery of online exams with the entire assessment process managed on our Ava platform.
Our busiest time, the summer peak exam period, is still underway and we have achieved a new record of 900,000 high stakes exam papers digitally marked in our platform in a single day. This half year also marked an important milestone as one of our major customers delivered its first set of global digital exams using our Ava platform.
TTS
TTS revenue for the period is GBP29.6m, slightly down by 3.6% on last year, largely due to the war in the Middle East having impacted international orders in that region. UK revenue is marginally down due to our decision to not initiate a site wide discount, unlike last year. That decision, along with achieving greater efficiencies, has helped divisional contribution to be 16.7% higher than in HY25.
TTS has introduced 67 new own-IP products in H1, including our Glow Sequencing Cubes, which have already received a great reception, generating significant interest and a steady stream of orders in its launch month. Creating unique products and resources using our own intellectual property, rather than simply reselling, remains one of our key differentiators in this highly transactional market.
Technology
Technology sales in H1 are GBP20.0m, 9.1% down on last year as the division continues to be impacted by the challenging UK schools' market with schools facing ongoing budget constraints. An additional factor in the decline is the price reductions given to a small number of major managed services customers towards the end of FY25 for multiple-year contract extensions, thereby providing greater certainty of revenue in years to come.
The Connect the Classroom government initiative has progressed more slowly than expected reflecting changes in government approach although we remain hopeful that this initiative will be reinstated in the near future. Hardware sales started the year well but have since been affected by the rise in global prices for computer parts. Despite these challenges, Technology has continued to win and renew contracts which provide recurring revenues. This includes WMG Academy Trust and Alpha Schools renewing for a further 5 years and a number of new connectivity wins on multi-year contracts.
Outlook
Our core Assessment business is continuing to progress positively and we have made great strides in completing strategic initiatives, such as the separation of the divisions and the continued development of RM Ava. Full year FY26 adjusted operating profit remains in line with market expectation and with a higher proportion than previously envisaged coming from our core Assessment business. Owing to the challenging market and macroeconomic headwinds impacting Technology and, to a lesser extent, the short-term impact on TTS caused by the war in the Middle East, we expect overall revenue for the full year to be slightly below that reported in FY25.
Our strategic priority to materially reduce net debt remains a key focus and we are confident in our ability to scale our high growth Assessment business over the coming years. Our Assessment pipeline has grown by over 100% compared to a year ago. This reflects opportunities that are unfolding not only within RM's traditional education sector but also through government sponsored digital accreditations and our continued expansion into global professional qualifications, enlarging our TAM substantially.
Chief Financial Officer's statement
The first half of FY26 has again been a period of significant change and progress within RM plc, most notably in the continued significant improvements in profitability that our strategy is delivering; but also through the separation of the RM Assessment business into a standalone legal entity and core IT / ERP systems.
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Financial Review
Group financial performance
GBPm HY26 HY25 Variance Revenue from continuing operations 70.1 73.2 (4.2)% Loss before tax from continuing operations (2.9) (4.3) 32.6% Statutory loss after tax (2.0) (3.3) 39.4% Diluted EPS from continuing operations (2.1)p (4.0)p 47.5% Adjusted performance measures1: Adjusted operating profit from continuing operations 2.7 0.9 200.0% Adjusted EBITDA excluding share-based payments 5.2 3.5 48.6% Adjusted profit/(loss) before tax from continuing operations 0.0 (2.4) n/a Adjusted diluted EPS from continuing operations (0.0)p (2.0)p n/a Adjusted net debt2 59.3 59.6 0.5%
1. Throughout this statement, adjusted operating profit, adjusted EBITDA excluding share-based payments,adjusted loss before tax and adjusted EPS are Alternative Performance Measures, stated after adjusting items (seeNote 4) which are identified by virtue of their size, nature and incidence. The Group reports adjusting items whichare used by the Board to monitor and manage the performance of the Group, in order to ensure that decisions takenalign with the Group's long-term interests. The treatment of adjusted items is applied consistently year-on-year. 2. Adjusted net debt is defined as the total of borrowings less capitalised fees, cash and cash equivalentsand overdrafts. Lease liabilities of GBP17.2m (30 November 2025: GBP15.0m) are excluded from this measure as they arenot included in the measurement of adjusted net debt for the purpose of covenant calculations.
Divisional performance
GBPm HY26 HY25 Variance RM TTS: Total revenue 29.6 30.7 (3.6)% UK revenue 21.9 22.6 (3.1)% International revenue 7.7 8.1 (4.9)% Divisional contribution 2.1 1.8 16.7% Adjusted operating profit 0.8 0.1 700.0% Adjusted operating profit margin 2.7% 0.3% 2.4% RM Assessment: Revenue 20.5 20.5 0.0% Divisional contribution 7.5 6.7 11.9% Adjusted operating profit 5.3 3.6 47.2% Adjusted operating profit margin 25.9% 17.6% 8.3% RM Technology: Revenue 20.0 22.0 (9.1)% Divisional contribution 1.8 3.5 (48.6)% Adjusted operating profit 0.0 0.9 (100.0)% Adjusted operating profit margin 0.0% 4.1% (4.1)%
Group revenue from continuing operations decreased by 4.2% to GBP70.1m (HY25: GBP73.2m).
Adjusted operating profit from continuing operations improved by GBP1.8m to GBP2.7m (HY25: GBP0.9m) through a combination of a better mix of higher profit revenue streams and through ongoing cost control.
RM TTS revenues decreased by 3.6% to GBP29.6m (HY25: GBP30.7m). UK revenue declined (3.1%) but material margin increased by 4.2% as significant discounting took place in the prior year. International revenue declined in the period (4.9%) with continuing geopolitical uncertainty impacting conversion of orders to sales. Divisional contribution improved to GBP2.1m (HY25: GBP1.8m) through ongoing cost control and operational efficiency improvements, and TTS divisional adjusted operating profit increased significantly to GBP0.8m (HY25: GBP0.1m). Adjusted operating margin increased by 2.4% to 2.7% (HY25: 0.3%).
RM Assessment revenues remained flat at GBP20.5m. The division saw continued strong revenue growth in recurring contracted revenues (+7.3%). This growth has come from the impact of increased volumes of assessments from existing customers, as well as some impact from new customers won since last year. Revenue growth was partially offset by the continued wind down of legacy and other non-core contracts to GBP1.5m (HY25: GBP2.8m). On the back of growth of higher margin recurring revenue, divisional contribution increased by 11.9% to GBP7.5m (HY25: GBP6.7m) and adjusted operating profit increased even further by 47.2% to GBP5.3m (HY25: GBP3.6m), as the division benefitted from lower corporate allocations. As a result Assessment division generated adjusted operating profit at 25.9% of revenue (HY25: 17.6%).
RM Technology revenues decreased by 9.1% to GBP20.0m (HY25: GBP22.0m) as HY26 is the first full half year impact of lower pricing on the long term renewal of the division's largest customer during FY25. The division saw encouraging increases in transactional sales, however these were limited by continued headwinds in UK schools' budgetary pressures and the impact of significant cost inflation from suppliers of computer hardware. Divisional contribution declined by GBP1.7m to GBP1.8m (HY25: GBP3.5m), flowing through to an adjusted operating profit of GBP0.0m (HY25: profit of GBP0.9m) and adjusted operating margin reduced to 0.0% (HY25: 4.1%).
Adjusted EBITDA excluding share-based payment charges increased to GBP5.2m (HY25: GBP3.5m) reflecting further improvement in our operational efficiency.
Loss before tax improved to GBP2.9m (HY25: loss of GBP4.3m); this GBP1.4m improvement was delivered by a GBP1.8m increase in Adjusted Operating Profit and GBP0.7m reduction in finance costs offset by an increase of GBP1.0m in adjusting items, primarily as a result of our ongoing separation activities and transition to a new ERP system.
Statutory loss after tax was GBP2.0m (HY25: loss of GBP3.3m), with the improvement noted above offset by a GBP0.1m lower tax credit.
Diluted loss per share was (2.1)p (HY25: (4.0)p) and adjusted earnings/(loss) per share was 0.0p (HY25: (2.0)p).
Adjusting items
To provide an understanding of business performance excluding the effect of significant change programmes and material transactions, certain costs are identified as 'adjustments' to business performance as set out below:
GBPm HY26 HY25 Amortisation of acquisition-related intangible assets 0.1 0.1 Restructuring costs1 2.7 1.7 CARE scheme pension costs2 0.1 0.1 Total adjustments 2.9 1.9 Tax impact (0.9) (0.3) Total adjustments after tax - continuing operations 2.0 1.6 Total adjustments after tax - discontinued operations - - Total adjustments after tax 2.0 1.6
1 Restructuring costs in HY26 relate primarily to the legal separation and new ERP implementation activities announced in FY25. Restructuring costs in HY25 related to the implementation of the Group's new Target Operating Model announced in FY24, which has now concluded.
2 Ongoing costs for the CARE pension scheme are presented as an adjusting item within continuing operations as they are not related to the underlying trading operations of the Group, following the discontinuation of the Consortium business.
Inventory
Inventories have reduced slightly to GBP12.9m (FY25: GBP13.0m) as TTS ensures it holds sufficient and appropriate stocks in advance of its peak trading period.
Corporate Costs
Total corporate costs reduced by GBP2.4m to GBP8.7m (HY25: GBP11.1m) as a result of the savings programmes delivered and ongoing cost control; these reductions were partially offset by the cost associated with share plan awards for management. Corporate costs in the period after divisional allocations were GBP3.4m, reduced from GBP3.6m in HY25.
Taxation
The total tax credit for the period was GBP0.9m (HY25: credit of GBP1.0m).
Cash flow, Net Debt and Lender Agreement
The first half of the financial year is normally a working capital outflow period for the Group, with lower revenues and profitability than H2, as well as inventory purchases ahead of the second half peak selling periods in TTS & Technology; the majority of cash inflow from examinations sessions also comes in the second half.
On a statutory basis, net cash inflow from operating activities was GBP0.0m (HY25: GBP1.1m), with the reduction primarily arising from working capital settlements.
Adjusted net debt at the end of the period was GBP59.3m (FY25: GBP50.6m) as the GBP0.0m net cash flow from operating activities (see above) was primarily offset by GBP4.2m of asset purchases (HY25: GBP4.2m) as we continued investment in RM Ava, GBP2.6m of interest paid (HY25: GBP2.8m), and GBP1.4m of lease repayments (HY25: GBP1.4m).
The Group has an agreement with Lenders for a GBP70.0m bank facility to January 2028, secured by a fixed charge over the shares of each of the obligor companies (except for RM plc), and the fixed and floating charge over all assets of the obligor companies. Financial covenants during the period and to the end of the facility are as follows:
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-- A quarterly LTM EBITDA (excluding discontinued operations) covenant test to November 2026, after which itis replaced by a quarterly EBITDA leverage test and interest cover test, which are required to be below 4.5x andabove 3.5x respectively for the quarters ended 28 February and 31 May 2027, and below 4.5x and above 4xrespectively for the quarters thereafter; and
-- A 'hard' liquidity covenant test requiring the Group to have liquidity greater than GBP7.5m on the lastbusiness day of the month, and liquidity not be below GBP7.5m at the end of two consecutive weeks within a month.
Balance Sheet
The Group had net assets of GBP31.9m at 31 May 2026 (FY25: GBP30.9m). The balance sheet includes non-current assets of GBP106.7m (FY25: GBP97.1m), of which GBP29.3m (FY25: GBP29.0m) is goodwill and GBP23.1m (FY25: GBP20.1m) relates to the Group's defined benefit pension scheme which is discussed further below.
Operating PPE, intangible and right-of-use assets total GBP39.1m (FY25: GBP33.6m) and includes acquired brands, customer relationships, intellectual property, and leases primarily relating to properties used by the Group.
Net current assets of GBP1.9m (FY25: GBP5.0m) includes cash and cash equivalents of GBP4.9m (FY25: GBP6.2m) and bank overdrafts of GBP4.1m (FY25: GBPnil).
Non-current liabilities of GBP76.7m (FY25: GBP71.1m) includes borrowings of GBP60.1m (FY25: GBP56.7m) and lease liabilities of GBP15.1m (FY25: GBP13.4m) which are predominately associated with the Group's utilisation of properties.
Dividend
A condition of the previously extended and amended banking facility agreement remains the same, which was to restrict dividend distribution until the Company has reduced its net debt to LTM EBITDA (post IFRS 16) leverage to less than 1x for two consecutive quarters. Therefore, we are not recommending the payment of a dividend and are unlikely to in the short-term since our focus is to continue investing in RM's growth.
Pension
The Company operates two defined benefit pension schemes ("RM Scheme" and "CARE Scheme") and participates in a third, multi-employer, defined benefit pension scheme ("Platinum Scheme"). All schemes are now closed to future accrual of benefits.
As set out in Note 9, the net IAS 19 surplus increased by GBP3.0m to GBP23.1m during the period. All three schemes are in surplus. The increase was driven by higher discount rates decreasing the value of liabilities.
The latest triennial valuations for statutory funding purposes for the RM and CARE schemes, dated 31 May 2024, do not require any additional contribution payments. The Platinum scheme valuation, dated 31 December 2024, does not require any contribution payments until 31 December 2030.
During the period the sponsoring employer of the RM, CARE and Platinum schemes was changed from RM Education Limited (for the RM scheme) and RM Educational Resources Limited (for the CARE and Platinum schemes) to RM plc.
Internal Controls
During the period management have continued to embed financial controls, through a programme of quarterly self-certification by control owners, and independent testing by the Internal Audit & Internal Controls team.
The Board and Audit & Risk Committee are updated regularly with respect to ongoing improvements to the control environment and the outcomes of testing. Where controls currently are not designed, implemented, or operating as effectively as they should, management have provided the Committee with assurance that appropriate mitigating actions are in place to conclude that these Financial Statements do not contain material errors.
Going Concern
In assessing the going concern position, the Directors have considered the balance sheet position as included on page 12 and the level of available finance not drawn down. The net current assets and adjusted net debt for the Group at 31 May 2026 were GBP1.9m and GBP59.3m respectively (30 November 2025: net current assets of GBP5.0m and GBP50.6m respectively). RM Group plc has a bank facility ("the facility") which totalled GBP70.0m at the date of this report. The facility maturity was extended in June 2025 and is committed until 5 January 2028. The terms of the revised facility are as disclosed in Note 11. The debt facilities are subject to financial and certain non-financial covenants. Details of the financial covenants can be found in the 'Cash Flow, Net Debt and lender agreement' section above, and the non-financial covenants in Note 11.
The Directors have prepared cash flow forecasts for the period to the end of the facility which indicate there is headroom for both covenants at each measurement period. A number of reasonably plausible downside scenario sensitivities have been assessed, alongside a review of mitigating actions which are within management's control. While the Directors of the Group believe that all reasonable worst-case downside scenarios occurring together is highly unlikely, under this reasonable worst case scenario without any mitigating actions the Group would continue to comply with the covenants of the facility until February 2027 when the interest cover test would be breached, and May 2027 when the adjusted leverage test would be breached. With mitigations applied to the reasonable worst-case scenarios, no breach of either covenant is forecast.
Taking this into account, the Group is expected to comply with all debt covenants in place and will have sufficient funds to meet its liabilities as they fall due until the end of this facility. Further detail on the Directors' assessment of going concern, including details in relation to the base assessment and the reasonably plausible downside scenario are set out in Note 1 to the financial statements below.
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED INCOME STATEMENT
Six months ended 31 May 2026 Six months ended 31 May 2025
Adjusted Adjustments Total Adjusted Adjustments Total
Note GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
Revenue 2, 3 70,130 - 70,130 73,199 - 73,199
Cost of sales (44,301) - (44,301) (44,790) - (44,790)
Gross profit 25,829 - 25,829 28,409 - 28,409
Operating expenses (23,287) (2,941) (26,228) (27,655) (1,905) (29,560)
Movement in expected credit loss 160 - 160 189 - 189
provision
Profit/(loss) from operations 2 2,702 (2,941) (239) 943 (1,905) (962)
Finance income 548 - 548 542 - 542
Finance costs (3,206) - (3,206) (3,873) - (3,873)
Profit/(loss) before tax 44 (2,941) (2,897) (2,388) (1,905) (4,293)
Tax 5 (11) 884 873 703 269 972
Profit/(loss) for the period 33 (2,057) (2,024) (1,685) (1,636) (3,321)
Earnings per ordinary share: 6
- Basic 0.0p (2.1)p (2.0)p (4.0)p
- Diluted 0.0p (2.1)p (2.0)p (4.0)p
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME/(EXPENSE)
Six months ended
Six months ended
31 May 2026
31 May 2025
Note GBP000 GBP000
Loss for the period (2,024) (3,321)
Items that will not be reclassified subsequently to profit or loss
Defined benefit pension scheme remeasurements 9 2,855 (3,172)
Tax on items that will not be reclassified subsequently to profit or (714) 791
loss
Items that are or may be reclassified subsequently to profit or loss
Fair value loss on hedged instruments (17) (275)
Fair value loss on hedged instruments transferred to the income 48 72
statement
Exchange gain/(loss) on translation of overseas operations 220 (190)
Other comprehensive income/(expense) 2,392 (2,774)
Total comprehensive income/(expense) attributable to owners
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368 (6,095) of the parent
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED BALANCE SHEET
At 31 May 2026 At 30 November 2025
Note GBP000 GBP000
Non-current assets
Goodwill 29,331 29,036
Other intangible assets 18,050 14,249
Property, plant and equipment 6,446 6,585
Right-of-use assets 14,601 12,758
Defined benefit pension scheme surplus 9 23,127 20,093
Other receivables 307 353
Contract fulfilment assets 6,568 5,262
Deferred tax assets 8,257 8,734
106,687 97,070
Current assets
Inventories 12,893 12,987
Trade and other receivables 28,512 26,050
Contract fulfilment assets 2,121 2,720
Tax assets 1,174 121
Cash and cash equivalents 4,907 6,166
49,607 48,044
Total assets 156,294 145,114
Current liabilities
Trade and other payables (42,599) (41,895)
Provisions 8 (1,055) (1,154)
Bank overdraft (4,068) -
(47,722) (43,049)
Net current assets 1,885 4,995
Non-current liabilities
Lease liabilities (15,144) (13,393)
Other payables (557) (165)
Provisions 8 (800) (809)
Defined benefit pension scheme obligation 9 (30) (30)
Borrowings 7 (60,139) (56,742)
(76,670) (71,139)
Total liabilities (124,392) (114,188)
Net assets 31,902 30,926
Equity attributable to shareholders
Share capital 2,242 2,242
Share premium account 39,458 39,458
Own shares (433) (444)
Capital redemption reserve 94 94
Hedging reserve - (31)
Translation reserve (840) (1,060)
Retained earnings (8,619) (9,333)
Total equity 31,902 30,926
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Own Capital Hedging Translation Retained
capital premium shares redemption reserve2 reserve3 earnings Total
reserve1
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
At 1 December 2024 1,917 27,080 (444) 94 31 (831) (10,738) 17,109
Loss for the period - - - - - - (3,321) (3,321)
Other comprehensive - - - - (203) (190) (2,381) (2,774)
expense
Total comprehensive - - - - (203) (190) (5,702) (6,095)
expense
Transactions with
owners of the
Company:
Share-based payments - - - - - - 541 541
Tax thereon - - - - - - 4 4
At 31 May 2025 1,917 27,080 (444) 94 (172) (1,021) (15,895) 11,559
At 1 December 2025 2,242 39,458 (444) 94 (31) (1,060) (9,333) 30,926
Loss for the period - - - - - - (2,024) (2,024)
Other comprehensive - - - - 31 220 2,141 2,392
income
Total comprehensive - - - - 31 220 117 368
income
Transactions with
owners of the
Company:
Issue of own shares - - 11 - - - (11) -
Share-based payments - - - - - - 614 614
Tax thereon - - - - - - (6) (6)
At 31 May 2026 2,242 39,458 (433) 94 - (840) (8,619) 31,902
1 The capital redemption reserve arose from the repurchase of issued share capital. It is not distributable.
2 The Group hedging reserve arises from cash flow hedges entered into by the Group. It is not distributable as the gains and losses are unrealised.
3 The Group translation reserve arises on consolidation from the unrealised movement of foreign exchange on the net assets of overseas entities. It is not distributable.
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
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