RM returns to profit as lower expenses offset revenue drop
RM PLC on Thursday reported a swing to an annual profit, snapping a three-year streak of losses, despite a slight drop in revenue.
The England-based information technology firm focused on the education sector said pretax profit totalled £3.2 million in the year ending November 30, swinging from a loss of £12.1 million the year prior. Revenue, however, slipped 2.5% to £162.1 million from £166.1 million.
It represents RM’s first profit since financial 2021. Operating expenses were 15% lower on-year at £54.0 million.
The company said its revenue was hurt by a tough schools market in the UK, while internationally,, it noted ‘sales were constrained by the US tariffs’.
RM’s Ava digital assessment platform has instead strengthened its adoption in the financial year, crossing the 20 million mark on processed test and being a core component of a 20% revenue growth of the company’s assessment division.
RM is as such confirming its outlook for the current financial year, and reaffirmed its project to separate its divisions into different legal entities.
Chief Executive Mark Cook said: ‘This year has seen us build real momentum in executing our strategy as we continue to grow our core Assessment platform revenue and drive a meaningful increase in our profitability year on year.
‘Looking ahead, we remain focused on driving growth, by continuing to invest in RM Ava and our core, higher margin, Assessment business. Simultaneously, we are actively working on delivering the operational and legal separation necessary to facilitate future disposals of non-core assets and further improve efficiencies.’
RM shares were down 4.6% to 97.30 pence each on Thursday afternoon in London.
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