AUS
NZ
UK
CA
USA
IND
Highlights
- RM plc anticipates FY24 adjusted operating profit to exceed market expectations by 5% to 10%.
- Approximately £100 million in contracts won for RM’s global assessment platform during FY24.
- Despite challenging market conditions, RM reports improved profitability and operational efficiencies.
RM plc (“RM” or the “Company”), a global leader in educational technology (EdTech), digital learning, and assessment solutions, has provided a positive trading update for the year ended 30 November 2024 ("FY24"). The Company expects FY24 adjusted operating profit to be in the range of £8.4 million to £8.8 million, surpassing market expectations by 5% to 10%. Additionally, adjusted EBITDA is anticipated to be between £13 million and £14 million, indicating solid financial performance despite challenging market conditions.
The Company’s revenue from continuing operations, excluding the Consortium business, is expected to be 5% to 6% lower than in FY23. This decline is primarily due to the expected reduction in revenues from a few legacy projects that have now come to an end. However, RM’s strong performance in securing new business, particularly in its Assessment division, has more than offset these declines.
In the Assessment segment, RM secured approximately £100 million worth of contracts for its global assessment platform during FY24, the majority of which will be recognized as revenue starting in FY25. This has significantly boosted RM’s contracted order book, which now stands 2.25 times higher than at the same time last year. While these strategic wins contributed to growth, the Company also faced declines in revenue from a small number of legacy projects.
Despite a challenging environment in the UK Schools market, which impacted revenues in the TTS and Technology divisions, RM has seen improved profitability in these areas. This improvement is attributed to a realigned operating model that has delivered greater operational efficiencies and a lower cost base. These changes have allowed the Company to navigate market difficulties while still improving profitability.
RM’s net debt position has also exceeded expectations, with the Company maintaining its position within the banking covenants for EBITDA and liquidity, while still allowing for investment in working capital and capital expenditures to fund future growth. This financial flexibility positions RM well for continued growth in FY25 and beyond.
Looking ahead, RM plans to update its strategy and outlook when it announces its full-year results in the new year. However, the progress made in FY24 is a strong foundation for the future, as RM remains committed to reducing net debt and further growing its business, especially in the rapidly expanding digital assessment market.
Mark Cook, CEO of RM plc, commented, “This has been a year of transformation for RM, and the success of our strategy is reflected in the progress we have made driving profitability and growing our contracted order book. Our focus on the significant opportunities for Assessment has delivered a number of major new digital contracts, alongside operational improvements throughout the business. We are pleased with the progress that has been made and remain focused on reducing our net debt.”
