RM plc first-half results show improving profitability as assessment growth offsets weaker revenue

Stronger margins and cost savings lifted profits in the first six months of FY25, though Technology and TTS revenues remain under pressure and net debt increased with continued investment in RM Ava.

RM plc, a UK-based global educational technology and digital assessment provider, reported interim results for the six months ended 31 May 2025.

Revenue from continuing operations fell 6.5% year-on-year to £73.2 million, reflecting UK schools’ budget pressures and US tariffs affecting the TTS division. Despite the revenue decline, statutory loss after tax narrowed to £3.3 million compared with £6.8 million in the prior year.

Adjusted operating profit improved by £1.2 million to £0.9 million, supported by margin improvements and cost control. Adjusted EBITDA excluding share-based payments rose to £3.5 million from £2.4 million. The company reported annualized cost savings of more than £20 million since the start of its transformation program.

Adjusted net debt increased 13% to £59.6 million due to planned investment in RM Ava, the company’s new adaptive virtual accreditation platform. RM extended its banking agreement by 12 months to July 2027, maintaining existing terms.

Divisional trends and strategic investments

Assessment revenue rose 4.1% to £20.5 million, with platform revenue up 19% and margins increasing to 17.6% from 11.6%. The contracted order book grew from £95.7 million to £106.6 million, supported by new wins such as Trinity College, which will move approximately 600,000 mostly digital tests to RM’s platform.

Technology revenue declined 12% due to delayed UK government projects, though recent tender wins are expected to improve performance in the second half. TTS revenue fell 8.6% amid UK budget constraints and minor impacts from new US tariffs.

The official launch of RM Ava in June marks a shift toward scalable digital assessment tools. Early adoption has supported new contract wins, but ongoing investment contributed to higher net debt in the half year.

Outlook and restructuring plans

RM expects assessment revenue growth to offset temporary declines in TTS and Technology by year-end. The company is progressing with the legal and operational separation of its three divisions to improve agility and unlock further cost savings.

Mark Cook, Chief Executive of RM, says, “I’m really pleased with the continued progress we’re making in positioning RM for sustainable, long-term growth. Our profitability has improved further, driven by stronger margins and the benefits of our cost-saving initiatives. The recent extension of our banking facility also underlines the confidence our lenders have in the actions we are taking and our strategic direction.”