Slide 1: Half Year Results 2024
Half Year Results 2024 Tuesday, 16 July 2024 Mark Cook Chief Executive Simon Goodwin Chief Financial Officer
Slide 2: Agenda
Agenda HY24 Financial Strategy & overview review operations Mark Cook Simon Goodwin Mark Cook Chief Executive Chief Financial Officer Chief Executive 2 RM plc Half Year Results 2024
Slide 3: HY24 overview
HY24 overview Mark Cook, Chief Executive 3
Slide 4: Good trading performance
HY24 Overview Good trading performance Steady performance, growth in order book & further action on cost reduction • Revenue from continuing1 operations of £79.2m, down 9.6% YoY – revenues from new strategic contract wins to be recognised at point of client delivery • Contract wins will result in a
Slide 5: Strong strategic execution
HY24 Overview Strong strategic execution Good progress on strategy execution, launch of new service & AI solution • Significant long-term contract with International Baccalaureate (IB) – transformational delivery of digital assessments • Healthy pipeline of further Assessment opportunities valued at
Slide 6: Financial review
Financial review Simon Goodwin, CFO 6
Slide 7: HY24 financial summary
Financial review HY24 financial summary • £78.3m underlying revenue excluding Consortium down (3.2%): £79.2m – Natural decline in legacy Assessment projects, offset by growth in underlying contracted revenues of +11.1% Revenue from continuing1 – Continued pressure and election uncertainty in UK scho
Slide 8: Summary Income Statement
Financial review Summary Income Statement HY 2024 HY 2023 Variance £m Continuing1 Discontinued2 Total Continuing1 Discontinued2 Total Total Revenue 79.2 - 79.2 87.6 2.4 90.0 (10.8) Adjusted3 operating Loss (0.6) - (0.6) (4.5) 0.8 (3.7) 3.1 Adjusted3 operating Margin -1% - -1% -5% 33% -4% 3% Net fina
Slide 9: Adjusted revenue
Financial review Adjusted* revenue £m Adjusted* revenue excluding Consortium down 3.2% £(2.6)m 87.6 -6.7 80.9 -0.1 0.1 -1.9 -0.7 78.3 HY 23 Consortium HY 23 ex. Assessment TTS TTS - International Technology HY 24 HY23 Revenue Consortium • Minimal Consortium revenue in the period, reflecting cessatio
Slide 10: Adjusted operating loss
Financial review Adjusted* operating loss 6 £m Adjusted* operating loss excluding Consortium 4 £(0.3)m +£4.2m 2 1.6 -0.9 -6.1 0 -1.4 1.3 -0.8 -0.3 -4.5 -0.1 -2 -4 -6 HY23 Consortium HY23 ex. Assessment Allocation of TTS Technology Corporate HY24 HY23 AOP Consortium Harrier Park • Significant losses
Slide 11: Cashflow
Financial review Cashflow £m Elevated net debt underpinned by new banking facility to July 2026 1.3 3.2 52.7 3.7 (5.3) 2.1 2.1 45.6 £[x]m Adjusted* Operating Working Capex Pension Interest and Lease Adjusted* Net Debt cash flows before Capital fees Paid Liabilities Net Debt FY23 working capital HY24
Slide 12: Financial outlook & guidance
Financial review Financial outlook & guidance • HY24 performance in line with expectations for profitability and net debt • H2 revenue expected to significantly outperform H1, in line with historical seasonality linked to global exam sessions and UK back-to-school trading • Identified cost savings w
Slide 13: Strategy & operations
Strategy & operations Mark Cook, Chief Executive 13
Slide 14: Market dynamics and EdTech opportunities
Strategy & operations Market dynamics and EdTech opportunities Good progress made on our transformation programme, which has now moved into the value creation phase *Source: IMARC Group 14 RM plc Half Year Results 2024
Slide 15: RM strategic pillars
Strategy & operations RM strategic pillars Global Lifetime of Opportunity Learners Curriculum focused Products and solutions from across the world, $222bn early life to professional EdTech market Accreditors Global Owned, Educators, Accreditation designed IP Learners Platform Majority of revenue Cus
Slide 16: RM Portfolio Roadmap
Strategy & operations RM Portfolio Roadmap FY24 FY25 FY26 Platform Full end-to-end global digital accreditation platform Accreditors Solutions RM Consulting Educator Solutions Next Generation Managed Services Educational Resources Tech in a box Digital curriculum teaching aids Educators Products TTS
Slide 17: Strategic contract win – IB
Strategy & operations Strategic contract win – IB • Signed a new long-term contract with International Baccalaureate to support their move towards fully digital assessment and accreditation • Our partnership builds on more than 15 years of collaboration • The programme will include transformational
Slide 18: Strategy to target platform generated longer-term, contracted, recurring relationships
Strategy & operations Strategy to target platform generated longer- term, contracted, recurring relationships Assessment Orderbook • Historically, a large proportion of RM’s revenue was Unwinding (£m) transactional and project based, recognised as the 3.0 1.4 work was done or billed 3.0 • Contract w
Slide 19: RM Consulting – supporting digital assessments globally
Strategy & operations RM Consulting – supporting digital assessments globally • A new portfolio service was launched in H1 • RM Consulting was launched to help our customers on their digital transformation journey – For example, the formative assessment and digital assessments • Working with assesso
Slide 20: Creating a more responsible business
Strategy & operations Creating a more responsible business Our people Our environment & social • Employee engagement survey now captures • Carbon: FY23 1,543 CO2e versus 2015 (Base year) 5,234 sentiment towards pride, motivation, commitment, tons of CO2e attrition, and referral likelihood – 70% redu
Slide 21: Summary
RM 5. Summary Mark Cook, CEO
Slide 22: Summary
Summary Summary Good progress on strategy execution and Assessment contract growth • Good H1 performance and foundations being put in place to return to growth • Pipeline and contracted order book growth of 70% and 51% respectively • Traditional project revenue being replaced with long term contract
Slide 23: Appendices
Appendices 23 RM plc Half Year Results 2024
Slide 24: Income Statement
Appendices Income Statement HY 2024 HY 2023 £m Adjusted Adjustments Total Adjusted Adjustments Total Revenue 79.2 - 79.2 87.6 - 87.6 Cost of sales (49.1) - (49.1) (60.0) - (60.0) Gross profit 30.1 - 30.1 27.6 - 27.6 Gross profit % 38.0% - 38.0% 31.5% 0.0% 31.5% Operating expenses (30.7) (3.1) (33.8)
Slide 25: Balance Sheet
Appendices Balance Sheet £m 31 May 2024 31 May 2023 Goodwill 38.5 38.5 Intangible assets 6.7 5.2 Property, plant & equipment 7.8 8.3 Defined benefit pension surplus 15.4 12.8 Other receivables 0.2 0.2 Right-of-use assets 12.6 14.3 Contract fulfilment assets 2.0 2.0 Deferred tax assets 0.2 0.2 Total
Slide 26: Cashflow
Appendices Cashflow £m HY 2024 HY 2023 Loss from operations, including discontinued operations (3.7) (8.8) Depreciation, amortisation and impairments 2.8 3.9 Increase in provisions 0.4 0.3 Utilisation of contract fulfilment asset - - Other adjustments 0.7 1.1 Operating cash flows before movements in
Slide 27: Disclaimer
Disclaimer Forward-looking statements speak only as at the date of this Presentation. Except as required by applicable law or regulation (including to meet the requirements of the London Stock Exchange Rules, the Market Abuse Regulation as it forms part of domestic law in the United Kingdom by virtu