Slide 1: Year to 30 November 2015
Year to 30 November 2015 David Brooks Chief Executive Officer Neil Martin Chief Financial Officer 1
Slide 2: Highlights
• A good year of progress in line with expectations - Revenue down 12% to £178.2m as growth in RM Results and RM Resources is more than offset by phased transition in RM Education Highlights - Adjusted operating margin increased from 9.1% to 10.2% - Adjusted operating profit of £18.2m (£18.5m in 201
Slide 3: Financial summary
Financial summary
Slide 4: Financial Summary
Financial Summary £m FY15 FY14 Variance • Adjustments at PBT level were £+2.1m vs £-2.3m in 2014 principally benefiting from sale of investment in the Newham LEP and release of property and restructuring provisions • Full year adjusted effective tax rate 23.3% • Adjusted diluted EPS 15.6p (15.4p in
Slide 5: Financial Summary
Financial Summary Revenue £m FY15 FY14 Variance Adjusted* Operating Profit £m FY15 FY14 Variance Adjusted* Operating Margin FY15 FY14 Variance 5
Slide 6: Cash flow
Cash flow £70m £60m £50m £40m £30m £20m £10m £m Net Cash Cash Proceeds Pension Dividends Purchase of Capex Tax Other Net Cash 2014 generated from sale of own shares 2015 from other (EST) operations receivables • Cash generated from operations +£10.9m resulting in cash conversion of 56% - Cash conver
Slide 7: RM plc
RM plc RM plc - 1 February 2016
Slide 8: Three Divisions
Three Divisions Physical and curriculum E-assessment and education Software, services and resources for schools and data analysis to exam boards technology to UK schools nurseries in the UK and and central government in the and colleges internationally UK and internationally • 20,000+ schools • c.20
Slide 9: RM Repositioning over 5 years
RM Repositioning over 5 years Revenue Adjusted Operating Profit • Revenue decline following exit of hardware 350 20.0 manufacture and end 300 of government BSF 250 15.0 programme 200 10.0 150 • Operating margins 100 5.0 continue to improve 50 through period going 0 0.0 above 10% in 2015 2011 2012 20
Slide 10: RM Resources
RM Resources Revenue Adjusted Operating Profit • Revenue growth of 7.6% - UK Direct Marketing revenues +4.0% - International revenues +31.6% - UK distributor revenues -1.5% • Adjusted operating profit growth of +7.7% 2013 2014 2015 2013 2014 2015 • Adjusted operating margins remain strong at 17.5% A
Slide 11: RM Resources
RM Resources • Discretionary spend in UK schools market will come under increased pressure - Significant growth from Primary curriculum change in last two years will not continue • Continued investment in online channel critical with revenues doubling in the last two years from 15% to 30% of direct
Slide 12: RM Results
RM Results • Revenue growth of 10.4% Revenue Adjusted Operating Profit - 18.5% growth in Assessment - Signed contract with UK’s largest schools awarding body - Growth in a number of existing clients - Data revenues decline -4.4% 2013 2014 2015 2013 2014 2015 • Adjusted operating profit growth of +19
Slide 13: RM Results
RM Results • Continued growth in Assessment expected - Signed new e-testing contract with Cambridge Assessment - Increased levels of e-marking in existing customers - Improving end to end (paper and computer based exam) opportunities in UK and International markets • Growth in Assessment revenues ex
Slide 14: RM Education
RM Education • Revenue decline of -28.3% in line with Revenue Adjusted Operating Profit phased transition from manufacturing hardware devices and rundown of the government’s Building Schools for the Future programme • Margins remain stable • Significant progress in key digital platform contracts 201
Slide 15: RM Education
RM Education • More challenging schools market can benefit RM Education proposition designed to improve efficiency and effectiveness at reduced cost • Managed Services will continue to transition to a single site and multi-academy trust (MAT) offering • Retention rates and new wins improving • Infra
Slide 16: Summary & Outlook
summary & Outlook
Slide 17: Summary & Outlook
Summary & Outlook Maintain strong margins and market position despite pressure on school budgets Strong pipeline supports continued growth and good operating margins Stabilised platform established Robust balance sheet with stronger cash conversion levels returning in 2017 Pension triennial valuatio
Slide 18: RM plc - February 2016
RM plc - 1 February 2016
Slide 19: Income Statement
Income Statement 2015 2014 19
Slide 20: Cash Flow
Cash Flow Operating cash flows - £m 2015 2014 Non-operating cash flows – £m 2015 2014 20
Slide 21: Pensions
Pensions Deficit at 30 Nov 2014 (26.8)m Investments at Nov 2015 Deficit at 30 Nov 2015 (21.9)m Total 100% • IAS 19 balance sheet deficit decreased £-4.9m to £21.9m • Triennial valuation agreed with cash deficit recovery payments set at £3.6m p.a. plus scheme running costs from 1 June 2015 as part of
Slide 22: Balance Sheet
Balance Sheet RM plc Goodwill and acquisition intangibles Property, plant & equipment and software intangibles Other receivables Deferred tax assets Total non-current assets Inventories Trade & other receivables Tax assets Assets held for sale Cash & short-term deposits Total current assets Total as
Slide 23: RM Resources – Held for sale (SpaceKraft)
RM Resources – Held for sale (SpaceKraft) Revenue Adjusted Operating Profit • SpaceKraft was sold in December 2015 (post balance sheet date) for a consideration of £0.8m • SpaceKraft is a manufacturer and distributor of special needs products 2013 2014 2015 2013 2014 2015 Adjusted Operating Margin 2
Slide 24: UK Education Spend
UK Education Spend £100bn £90bn £80bn £70bn £60bn £50bn £40bn £30bn £20bn £10bn £0bn 24