Business
RM plc: Half year trading update
RM plc: Half year trading update.
About this update from Rm Plc
[{"type":"text","content":"\n \n \n \n\n\t\n\n\n\n\n\n\n\n\n\n\n\nRM plc (RM.)\n\n\n\n\n\n\nRM plc: Half year trading update 24-Jun-2025 / 07:00 GMT/BST\n\n\n24 June 2025 \n\nRM plc\n\nHalf year trading update \n\nProgress on improving profitability, on course to meet FY25 expectations\n RM Assessment’s platform revenue showing strong growth\n Supportive agreement with lenders to extend existing £70m facility to July 2027\n Triennial pension valuation for closed defined benefit schemes moves from deficit to surplus\nRM 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\").\n\nTrading update\n\nAdjusted operating profit in H1 25 is expected to be in a range of £0.7-0.9m (H1 24 restated[1]: £0.3m loss) with adjusted EBITDA of £3.3-£3.5m (H1 24 restated: £2.4m)[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.\n\nThis 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. \n\nRM’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.\n\nExtension of banking facility and net debt\n\nThe 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 ...