Slide 1: Technology and resources for education
Technology and resources for education 6 months to 31 May 2018 David Brooks Neil Martin Chief Executive Chief Financial Officer Officer © 2018, RM plc – July 2018
Slide 2: Highlights
HIGHLIGHTS Revenue up 33% to £95m (2017: £71m) following the acquisition of The Consortium Good progress internationally with double digit revenue growth in RM Resources alongside three new International client wins in RM Results Adjusted* diluted EPS improves by 7.4% to 7.3pps (2017: 6.8pps) Adjust
Slide 3: Financial Summary
RM pic Financial Summary
Slide 4: Financial Summary
FINANCIAL SUMMARY £m H1 18 H1 17 Variance Revenue 94.9 71.3 +33.1% Operating profit (adjusted*) 8.3 6.5 +27.4% Operating margin (adjusted*) 8.8% 9.2% -0.4pp Profit before tax (adjusted*) 7.6 6.0 +25.9% Profit after tax (adjusted *) 6.1 5.6 +9.2% Statutory profit after tax 5.6 3.8 +46.2% Diluted EPS
Slide 5: Financial Summary
FINANCIAL SUMMARY Revenue £M Adjusted* Operating Margin FY18 FY17 Variance FY18 FY17 Variance RM Resources 51.1 25.5 +100.6% RM Resources 8.2% 11.1% -2.9pp RM Results 12.3 13.5 -8.6% RM Results 23.0% 20.5% +2.5pp RM Education 31.5 32.4 -2.6% RM Education 11.6% 9.6% +2.0pp Group 94.9 71.3 +33.1% Grou
Slide 6: Cash Flow
CASH FLOW £m -£5m -£10m -£15m -£20m -£25m Net Debt 30 Cash used in Dividends Pension Capex Tax Other Net Debt 31 Nov 2017 operations May 2018 Cash used in Operations of £1.3m reflects seasonal effects of the working capital cycle 06
Slide 7: Pensions
PENSIONS IAS19 deficit reduced to £9.1m (Nov 2017: £20.2m) 5% 40 • Increase in scheme assets of £4.8m 35 • Decrease in scheme liabilities of £6.3m 4% 30 IAS19 Deficit level (£m) 25 Deficit recovery plan cash-flow requirements 3% 20 across all schemes are £4.4m per annum 15 2% 10 • Triennial review o
Slide 8: Business Review
RM plc Business Review
Slide 9: RM Resources, RM Results, RM Education overview
RM RESOURCES RM RESULTS RM EDUCATION Curriculum and education Technology experts in Software, services and resources for schools and end-to-end global high technology to UK nurseries in the UK and stakes e-assessment schools and colleges internationally Best choice, 20 c.200m #1 innovation and c.300
Slide 10: RM Resources
RM RESOURCES Revenue Adjusted Operating Profit • Revenue doubled to £51m resulting from the acquisition of The Consortium and underlying UK and International growth in TTS 8.8 58.1 24.0 • Organic TTS revenues grew 6.4% to £27m with UK 6.6 revenues +5% driven by a strong Early Years 5.9 performance a
Slide 11: Integration Update
INTEGRATION UPDATE • Invest in operational efficiency Opportunities - Integration continues on track towards £4m p.a. target in 2020 of combined Range - Significant work in progress to improve operations and proposition brand proposition across The Consortium • International - International growth c
Slide 12: RM Results
RM RESULTS Revenue Adjusted Operating Profit • A strong period for international e-assessment contract wins: - Singapore Examinations and Assessment 20.1 5.0 Board 18.4 4.4 18.1 - National Examination Centre, Lithuania 4.0 - Design project contract with New Zealand 13.2 13.5 12.3 Qualifications Auth
Slide 13: RM Education
RM EDUCATION • Adjusted operating profits up 18% to Revenue Adjusted Operating Profit £3.6m 3.6 • Revenues down 2.6% 3.5 3.5 3.1 - Managed Services down 14% 36.5 2.6 2.9 following Building Schools for Future 34.2 31.5 2.3 32.4 contract conclusions in 2017 - Infrastructure up 7% with growth in Connec
Slide 14: Summary & Outlook
SUMMARY & OUTLOOK Revenue and profitability performance shows strong progress towards delivering at least full year expectations RM Resources Integration synergies progress as planned and sales momentum in H2 underpinned by significant international order RM Results Improving e-Assessment sales pipe
Slide 15: Appendix
RM plc Appendix
Slide 16: Income Statement
INCOME STATEMENT 6 MONTHS TO 31 MAY 2018 2017 £M ADJUSTED ADJUSTMENTS TOTAL ADJUSTED ADJUSTMENTS TOTAL Revenue 94.9 - 94.9 71.3 - 71.3 Cost of sales (56.2) - (56.2) (41.6) - (41.6) Gross profit 38.6 - 38.6 29.7 - 29.7 Gross profit % 40.7% n/a 40.7% 41.6% n/a 41.6% Operating expenses Amortisation of
Slide 17: Cash Flow
CASH FLOW OPERATING CASH FLOWS - £M 2018 2017 Profit from operations 7.7 4.3 Amortisation & impairment of intangibles 1.1 0.1 Depreciation & impairment of PPE and gain on disposal 1.0 1.2 Acquisition related costs 0.0 1.3 Share-based payments 0.6 0.6 Provisions 0.5 0.5 Other adjustments 0.5 (0.1) Op
Slide 18: Balance Sheet
BALANCE SHEET £M 31 MAY 2018 31 MAY 2017 Goodwill and other intangibles 64.6 14.8 Property, plant & equipment 9.8 5.1 Other receivables 1.5 1.1 Deferred tax assets 4.8 6.7 Total non-current assets 80.8 27.8 Inventories 22.1 12.5 Trade & other receivables 31.0 24.9 Cash & short-term deposits 1.2 29.3
Slide 19: Pupil Projections
PUPIL PROJECTIONS Full time equivalent pupil projections for state schools in England 2007 to 2025 5,500 Full-time equivalent pupils (000s) 4,800 4677 4504 Predicted increase (2016-25) of 173,000 FTE pupils 4,100 4004 Equivalent to c.650 averaged sized primary schools 3,400 3325 2955 Predicted incre
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Slide 22: Education
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