REG-RM plc RM plc: Strategy timetable and closure of the Consortium business

RMAnnouncement

24/11/2023 07:15

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   RM plc (RM.)
   RM plc: Strategy timetable and closure of the Consortium business

   24-Nov-2023 / 07:00 GMT/BST

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   THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE
   7 OF THE UK VERSION OF THE MARKET ABUSE REGULATION (EU 596/2014) WHICH IS
   PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

   For immediate release

                                                             24 November 2023

                                     RM plc

           Strategy timetable and closure of the Consortium business

    

   RM plc (“RM”, the “Company”), today announces in line with its strategy to
   be  a  leading  global   educational  technology,  digital  learning   and
   assessment solution provider,  that the  Board has taken  the decision  to
   close its  loss-making  Consortium  business, part  of  the  RM  Resources
   division.

   As announced by Mark Cook, CEO, at the half year results in August,  focus
   in the second half has been on the development of a strategic roadmap  for
   RM to create a simpler, more profitable business. This included a detailed
   review of RM’s portfolio to identify core areas of the business which were
   best placed to  capitalise on the  substantial EdTech opportunities.  Full
   details of its  strategic roadmap will  be provided as  part of RM’s  full
   year results announcement in the New Year.

   The Consortium business, the provider of education supplies and  resources
   to  schools,  has  experienced  an  extended  period  of  underperformance
   following the negative impact of the  rollout of a new ecommerce  platform
   in 2022.  Today the  Company announces  that it  has taken  the  difficult
   decision to close this business from the end of December. The decision  to
   close Consortium is in  line with the future  strategic direction for  the
   Company and has  been made with  the full cooperation  and support of  its
   lenders. The decision will also enable RM Resources management to focus on
   its successful TTS business.

   In the accounts for the year ending 30 November 2023, the Board expects to
   make a material  write off  of the carrying  value of  Consortium and  its
   related assets as a non-cash item, and to make an additional provision for
   exit costs but there is not expected to be any cash impact in this current
   financial year.

   The Company plans to issue a trading update in December for its  financial
   year ending 30 November 2023.

    

   Mark Cook, Chief Executive of RM, said

   “The decision to simplify  the business will enable  us to better  weather
   the macro  challenges  and  build  a  platform  for  growth.  Our  50-year
   heritage, leading  market  positions,  IP, expertise,  and  deep  customer
   knowledge, mean we are well positioned to take advantage of the structural
   drivers in  the  growing  global  EdTech  industry  and  deliver  for  our
   stakeholders.

   But, at the same  time, it is  with regret that we  have decided to  close
   Consortium, a  business full  of hugely  talented and  valued  colleagues.
   Unfortunately, its underperformance is  a drag the  Company can no  longer
   afford and has clouded the good  progress made elsewhere. I would like  to
   take this  opportunity to  thank all  my colleagues  across RM  for  their
   continued commitment and hard work throughout this time.

   Looking ahead, I am confident that our new strategy, which we will unveil
   at the full year results, will shape RM into a pioneer of education
   technology, enriching the lives of learners globally.”

    

   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 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 Assessment,  trading under  the  Consortium and  TTS brands,  is  a
       leading provider  of  assessment software,  supporting  exam  awarding
       bodies, universities,  and  governments worldwide  to  digitise  their
       assessment delivery.
     • 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: MSCM
   TIDM:          RM.
   LEI Code:      2138005RKUCIEKLXWM61
   Sequence No.:  287008
   EQS News ID:   1780881


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:investorrelations@rm.com


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