REG-RM plc RM plc: Half year trading update

RMAnnouncement

Tue 07:00

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   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 £70m 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
   £0.7-0.9m (H1  24  restated 1  1 : £0.3m  loss)  with adjusted  EBITDA  of
   £3.3-£3.5m (H1 24 restated: £2.4m) 2  2 , reflecting continued progress on
   margin improvement and  cost control,  with annual cost  savings of  £20m+
   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 £73.0-£73.5m (H1  24 restated:  £78.3m),
   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 £95.7m  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  £70m  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  £7.9m to £59.6m  in H1 25 from  the 2024 year  end,
   similar to the £7.1m 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 £10.5m, representing  a
   marked improvement  on  the  2021 valuations  (deficit  of  £21.6m). As  a
   result, no further contributions are  required beyond the remaining  £1.8m
   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                            3 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 ( 4 smalthouse@headlandconsultancy.com)

   Chloe Francklin ( 5 cfrancklin@headlandconsultancy.com)

   Dan Mahoney ( 6 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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    7  1  Restated adjusted operating loss for H1 24 excludes £0.3m of
   Consortium losses from the reported loss of £0.6m, following Consortium’s
   closure in early FY24, and adjusted revenue from continuing operations in
   H1 24 excludes £0.9m relating to Consortium.

    8  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 (£0.3m
   SBP excluded) and also excludes £0.3m of Consortium losses which have been
   reclassified as discontinued operations.

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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.:   393672
   EQS News ID:    2159252


    
   End of Announcement EQS News Service

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References

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   3. mailto:investorrelations@rm.com
   4. mailto:smalthouse@headlandconsultancy.com
   5. mailto:cfrancklin@headlandconsultancy.com
   6. mailto:dmahoney@headlandconsultancy.com
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