REG-RM plc RM plc: Full Year Trading Update

RMAnnouncement

14/12/2023 07:15

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   RM plc (RM.)
   RM plc: Full Year Trading Update

   14-Dec-2023 / 07:00 GMT/BST

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                                                             14 December 2023

                                     RM plc

                            Full year trading update

    

   RM plc (“RM”,  the “Company”),  a leading  global educational  technology,
   digital learning and assessment solution  provider, is pleased to  provide
   an update  on the  Company's anticipated  results for  the year  ended  30
   November 2023 ("FY23") and progress of the Consortium business closure.

   Trading update

   Subject to completion of the FY23 audit, the Company anticipates that  its
   headline results for 2023 will show revenue from continuing operations  of
   c.£196m (FY22: £214.2m), including c.£19m from Consortium (FY22:  £33.6m);
   adjusted operating profit is in line with guidance.

   The Assessment  division continues  to grow,  with increased  revenue  and
   profitability reflecting the emerging opportunities in the global  digital
   assessment market. As anticipated, the Technology division has returned to
   profitability in the second half. TTS International performed well in  the
   year with TTS UK held back in a more challenged UK market and the  Company
   remains excited by the opportunities for its TTS product range across  its
   geographic markets.

   Net debt

   The Company  continues  to focus  on  reducing  its net  debt,  which  has
   decreased from the half year and is in line with market expectations.

   As confirmed last month, RM reached  agreement with its lenders to  extend
   their unconditional waivers for its 30 November EBITDA financial covenant.

   The renegotiation of an amendment  and extension of its lending  facility,
   which matures in July  2025 is ongoing and  the Company still expects  the
   renegotiation to have concluded by the end of Q1 2024.

   Closure of Consortium

   As announced  last  month,  the  Board took  the  decision  to  close  the
   loss-making Consortium business,  part of  RM Resources, from  the end  of
   December 2023. The  revenue from  Consortium in  FY23 is  estimated to  be
   c.£19m. This decision  to close the  business is in  line with the  future
   strategic direction  for the  Company and  will also  enable RM  Resources
   management to focus on its successful and higher margin TTS business.

   The business closure is progressing to plan, Consortium ceased taking  new
   customer orders in the first week  of December and options to transfer  to
   TTS or sell the remaining stock are progressing. As previously guided, the
   accounts for  the year  ended 30  November  2023 are  expected to  show  a
   material write-off of  the carrying  value of Consortium  and its  related
   assets as a non-cash  item, and include an  additional provision for  exit
   costs. There is no cash impact from the closure in FY23.

   At its full year results in the  New Year the Company will unveil its  new
   strategic roadmap and  its plans to  simplify the business  and return  to
   profitability.  It will also provide further details on the financial  and
   operational impact of the Consortium closure.

    

   Mark Cook, Chief Executive of RM, said 

   “I am pleased to report that we expect RM to deliver results in line  with
   market expectations in FY23. The strong performance from RM Assessment, as
   well as RM Technology’s  return to profitability  in H2, demonstrates  the
   fundamental strengths  in  the  business.  Despite  taking  the  difficult
   decision to  close  the  loss-making  Consortium  business,  there  remain
   several exciting international opportunities  for TTS, alongside a  number
   of key structural drivers that provide us  with a clear path to return  to
   profitability in  the future,  underpinned  by a  new agreement  with  our
   lenders.

   “I look forward to outlining RM’s new strategy to simplify the business at
   the FY results, as we continue to build a strong platform for growth.”

    

   Contacts:

   RM plc                      1 investorrelations@rm.com

   Mark Cook, Chief Executive Officer 

   Simon Goodwin, Chief Financial Officer

   Fiona O’Nolan, Investor Relations, Equitory 

    

   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:

   RM  provides   market-leading  products   and  services   to   educational
   institutions, exam  bodies and  international governments  which  improve,
   simplify and  support  education and  learning.  The education  sector  is
   transforming, and RM is well positioned to capitalise on this through  its
   three divisions.

     • RM Assessment is a leading provider of assessment software, supporting
       exam awarding  bodies,  universities,  and  governments  worldwide  to
       digitise their assessment delivery.
     • RM Resources is  the established provider  of education resources  for
       early years, primary schools, and secondary schools across the UK  and
       to 80 countries internationally.
     • RM Technology is a market-leading supplier of ICT software, technology
       and services to UK schools and colleges.

    

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   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
   Sequence No.:  291829
   EQS News ID:   1796447


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:investorrelations@rm.com


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