REG-RM plc RM plc: Successful negotiation of bank covenants waiver for August 2023

RMAnnouncement

29/08/2023 07:15

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   RM plc (RM.)
   RM plc: Successful negotiation of bank covenants waiver for August 2023

   29-Aug-2023 / 07:00 GMT/BST

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                                                               29 August 2023

                                        

                                     RM plc

        Successful negotiation of bank covenants waiver for August 2023

                                        

   RM plc, a leading  international supplier of  technology and resources  to
   the education sector (LSE:  RM) (“RM”, the  “Company”), today provides  an
   update on  the  successful  renegotiation of  a  short-term  unconditional
   covenant waiver with  its lenders,  and the ongoing  discussions with  its
   lenders to  extend this  covenant waiver  to cover  the 30  November  2023
   covenant test date.

     

   As announced  in its  half year  results on  9 August  2023, the  business
   operated within its  existing financial  covenants for the  first half  of
   2023 but indicated that  it expected to breach  the facility’s LTM  EBITDA
   covenant from the third quarter of  the FY2023 financial year, albeit  the
   Company is not expected to breach  its liquidity covenant test in FY23  or
   FY24. The Directors  therefore concluded that  it remained appropriate  to
   prepare the half-year financial statements on a going concern basis.

    

   The Banks  currently  remain  supportive of  management,  recognising  the
   issues that the business has faced  and also the steps taken through  this
   transformation period  (cost  savings  and  restructuring)  to  return  to
   previous levels  of  financial  performance. In  light  of  the  continued
   headwinds and the  need for the  annualisation of savings  to mature,  the
   Company and the Banks entered  into discussions to agree suitable  waivers
   and amendments to its existing facility.

    

   RM announces that it  has successfully received  waivers with its  lenders
   for its August 2023 EBITDA financial covenant and continues to comply with
   the conditions  of  each  lender  with regards  to  that  waiver  and  the
   respective facility  agreement. The  negotiation  of a  suitable  covenant
   waiver for the period ending 30 November 2023 is ongoing, and we expect to
   be able to announce its conclusion before the end of the current financial
   year.

    

   The Company  has also  commenced  the renegotiation  of an  amendment  and
   extension of its lending facility, which matures in July 2025. The Company
   is working  with its  advisers  and the  Banks,  and the  Company  expects
   renegotiation to have concluded by the end of Q1 2024. 

    

   Mark Cook, Chief Executive of RM, commented:

    

   "Whilst the  last financial  year  has been  extremely challenging,  I  am
   grateful for the continuing  support of our lenders  and the amendment  to
   our facility’s  covenants. Both lenders  have  held long  term  supportive
   relationships with the Group over many years and continue to support RM as
   it implements  its Transformation  Programme to  reduce its  net debt  and
   return the Company to growth and profitability."

    

    

   Enquiries:

   RM plc        1 investorrelations@rm.com

   Mark Cook, Chief Executive Officer 

   Emmanuel Walter, Chief Financial Officer (interim)

   Fiona O’Nolan, Investor Relations 

    

   Headland Consultancy (Financial PR)                    +44 203 805 4822

   Stephen Malthouse (smalthouse@headlandconsultancy.com)

   Chloe Francklin ( 2 cfrancklin@headlandconsultancy.com)

   Jemma Savage ( 3 jsavage@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 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:  MSCH
   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.:   267294
   EQS News ID:    1712203


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:investorrelations@rm.com
   2. mailto:cfrancklin@headlandconsultancy.com
   3. mailto:jsavage@headlandconsultancy.com


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