RM narrows first-half loss, says on track to meet full-year guidance

RM PLC on Tuesday said it remains confident in meeting full-year expectations for adjusted operating profit and earnings before interest, tax, depreciation and amortisation, as the firm reported a narrower first-half loss and progress on margin improvement.

For the six months to May 31, the Abingdon, England-based supplier of technology and resources to the education sector reported a pretax loss of £4.3 million, narrowing from £6.6 million the year prior.

Revenue fell 6.5% to £73.2 million from £78.3 million, due to pressure on UK school budgets and US tariffs affecting its TTS supplies division, the firm said.

Adjusted operating profit swung to £900,000 from a loss of £300,000 in 2024, while adjusted Ebitda excluding share-based payments rose 46% to £3.5 million from £2.4 million.

Assessment revenue increased, with RM noting 19% higher income on-year for its core assessment platform. The order book also increased to £106.6 million from £95.7 million, boosted by wins such as Trinity College and renewals in Singapore and Australia.

RM said it remains seasonally weighted to the second half and expects continued Assessment growth to offset declines in TTS and Technology by year-end. The company is moving forward with legal and operational separation of its three divisions to enhance strategic flexibility and unlock further cost savings.

Chief Executive Officer Mark Cook said: ‘We are building real momentum. Our profitability has improved further, driven by stronger margins and the benefits of our cost-saving initiatives.’

Adjusted net debt increased to £59.6 million from £52.7 million. RM said this was the result of investment in the Ava assessment platform, launched in June.

RM shares rose 1.0% to 98.50 pence in London on Tuesday afternoon.

Copyright 2025 Alliance News Ltd. All Rights Reserved.