REG-RM plc RM plc: Full year trading update

RMAnnouncement

11/12/2024 07:15

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   RM plc (RM.)
   RM plc: Full year trading update

   11-Dec-2024 / 07:00 GMT/BST

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   11 December 2024

                                     RM plc

                            Full year trading update

       FY24 adjusted operating profit anticipated to exceed expectations

   RM plc (“RM”, the “Company”), a leading global educational technology
   (“EdTech”), digital learning and assessment solution provider, is pleased
   to provide an update on the Company's anticipated results for the year
   ended 30 November 2024 ("FY24").

   Trading update

   Subject to completion of the FY24 audit, the Company expects FY24 adjusted
   operating profit to be £8.4 to £8.8 million, 5% to 10% ahead of market
   expectations, 1  1  with adjusted EBITDA of £13 to £14 million. Revenue
   from continuing operations, which now excludes the Consortium business, is
   expected to be 5 to 6% lower than in FY23.

   In Assessment, approximately £100 million of contracts for RM’s global
   assessment platform have been won during FY24, the vast majority of which
   will be recognised as revenue from FY25 onwards. This has resulted in the
   contracted order book 2  2  closing the year 2.25x higher than a year ago.
   FY24 revenue growth from these strategic wins has been offset by the
   expected declines in a small number of legacy projects coming to an end
   during the year.

   Despite a challenging UK Schools market impacting TTS and Technology
   revenues, these divisions have also seen improved profitability in FY24,
   reflecting a realigned operating model delivering greater operational
   efficiencies with a lower cost base.

   Net debt

   Net debt has finished the year better than market expectations, having
   operated within the Company’s EBITDA & hard liquidity banking covenants
   during the period, while allowing for working capital and capex to fund
   future growth.

   The Company will update future strategy and outlook when it announces its
   full year results in the new year.

   Mark Cook, CEO of RM, commented:

   “This has been a year of transformation for RM, and the success of our
   strategy is reflected in the progress we have made driving profitability
   and growing our contracted order book. Our focus on the significant
   opportunities for Assessment has delivered a number of major new digital
   contracts, alongside operational improvements throughout the business. We
   are pleased with the progress that has been made and remain focused on
   reducing our net debt.”

    

    

   Contacts:

   RM plc                            3 investorrelations@rm.com

   Mark Cook, Chief Executive Officer 

   Simon Goodwin, Chief Financial Officer

    

   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 outcome.

   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,
       technology and bespoke services to UK schools and colleges.

    

    

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    4  1  Prior to this update, the Company believes that market expectations
   for FY24 adjusted operating profit from continuing operations was £8m and
   net debt of £53m.

    5  2  Contracted order book represents secured revenue, supported by a
   contract, that is yet to be recognised as revenue in the financial
   statements. We introduced this metric for our Assessment division to
   provide greater visibility of the increasing trend towards securing
   longer-term strategic contractual revenue.

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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
   OAM Categories: 3.1. Additional regulated information required to be
                   disclosed under the laws of a Member State
   Sequence No.:   364328
   EQS News ID:    2048353


    
   End of Announcement EQS News Service

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