RM sees annual profit surge on strong Assessment arm growth
RM PLC on Thursday said full-year profit rose sharply, driven by strong growth in its core Assessment division, even as overall revenue dipped amid a challenging UK schools market.
In a trading update for the year ended November 30, the Abingdon, England-based supplier of technology and resources to the education sector said it expects adjusted operating profit of about £11.5 million, up 34% year-on-year, while adjusted earnings before interest, tax, depreciation, and amortisation is seen rising 21% to £16.6 million.
RM said its Assessment division delivered full-year revenue growth of 20%, with platform revenue up 17%. The company reported a record number of exams marked across 115 countries using its technology, and said 98% of Assessment revenue up for renewal in the year was successfully renewed.
Group revenue from continuing operations is expected to be 2% to 3% lower than in financial 2024, reflecting tough conditions in the UK schools market that weighed on RM Technology and TTS.
The company expects net debt of £50 million to £51 million at year-end and confirmed it operated within its banking covenants throughout the period, while supporting working capital and capital investment for future growth.
Chief Executive Officer Mark Cook said the business had built ‘real momentum’ during the year.
‘We are pleased to report a meaningful increase in our profitability year on year, as a result of a focus on the higher margin Assessment business,’ he said.
RM shares were 0.8% higher at 110.90 pence in London on Thursday afternoon.
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