RM sells TTS for up to £53.5m in debt-cutting push as it refocuses on digital assessment

The sale transfers more than 200 TTS employees to Eduviva and removes a £14.2m lease liability, with RM now expecting net debt of around £34m by the end of November 2026

RM has sold its TTS educational resources business to Eduviva Group for a total enterprise value of up to £53.5 million

RM plc has sold its TTS educational resources business to Sweden-based Eduviva Group AB for an enterprise value of up to £53.5 million, using the deal to make a substantial reduction in debt and narrow the UK edtech group around digital assessment and technology services.

The transaction covers the entire issued share capital of RM Educational Resources Limited, which operates TTS. More than 200 employees move with the business, with most of its existing senior management remaining in place.

RM will receive £36.3 million of initial consideration, which becomes a £32.6 million completion payment after adjustments, plus up to £3 million in deferred cash consideration linked to TTS's financial performance during the following 12 months.

Eduviva also takes on the remaining £14.2 million lease liability for TTS's Harrier Park property.

After fees, RM expects around £31 million of net cash proceeds to go towards reducing debt. Net debt including lease liabilities is now forecast at around £34 million on November 30, 2026, approximately half its previous expected level.

For Chief Executive Mark Cook, the deal is part of a wider restructuring of the group: "Today's announcement is yet another important milestone in the transformation of RM plc."

Debt reduction is central to the deal

The balance sheet context makes the disposal more significant than a straightforward portfolio reshuffle.

RM's adjusted net debt rose from £18.3 million in 2021 to £46.8 million in 2022. In its 2022 annual report, the company linked the deterioration partly to spending and overruns on its IT program. Adjusted net debt later reached £51.7 million at the end of FY24 and stood at £50.6 million at the end of FY25. RM

By May 2026, RM was reporting adjusted net debt of £59.3 million while continuing to invest in RM Ava, its digital accreditation platform. Its committed £70 million banking facility has since been extended to January 5, 2028. London South East

RM's adjusted net debt measure excludes lease liabilities, while its new forecast of approximately £34 million specifically includes them, so the May £59.3 million figure and the post-disposal £34 million forecast are not directly comparable on a like-for-like accounting basis. RM

The debt position has also affected capital returns. RM's banking arrangements restrict dividend payments until net debt to last-twelve-month EBITDA leverage remains below 1x for two consecutive quarters. The company said at its FY25 results that it was therefore unable to recommend a final dividend and was unlikely to do so in the short term. Investegate

The TTS sale is not an unexpected change of direction. RM raised £13.5 million before fees in October 2025, with proceeds earmarked partly for separating its divisions to facilitate disposals, alongside investment in RM Ava, Assessment sales and marketing, and working capital. Its FY25 annual report said management was "actively working on simplifying our business which includes disposing of non-core assets." RM

RM gives up a business worth 41.5% of FY25 group sales

The scale of TTS means RM is reducing debt by selling a substantial part of the group.

TTS generated £67.3 million of revenue in FY25, equivalent to 41.5% of RM's total sales, alongside £4.2 million of adjusted operating profit and a 6.2% adjusted operating margin.

The £53.5 million maximum enterprise value represents an implied 8.3 times TTS's FY25 EBITDA.

Headquartered in Nottingham, TTS develops curriculum-aligned educational resources, with approximately three-quarters of sales going to UK schools and institutions. Its products include the Bee-bot educational robot, designed to introduce younger students to coding, direction and sequencing.

Eduviva intends to support TTS's growth plans and expand its international customer base. Cook notes that the buyer already knows the business through distributor relationships with several of its brands.

"We believe Eduviva Group is well-placed to build on the success TTS has enjoyed over many years," he says.

RM is also removing another liability from its balance sheet. The company says the Section 75 deficits attached to its defined benefit pension schemes have fallen from a combined approximately £31 million in the 2024 triennial valuations to what it now describes as a minimal level.

Digital assessment moves to the center of RM

After the sale, RM will concentrate more heavily on RM Assessment and its Technology business.

At the center of that strategy is RM Ava, the company's cloud-based accreditation platform covering exam authoring, delivery, marking and grading.

RM's Assessment business has already become its main growth focus. FY25 revenue from the division increased 19.9% to £47.6 million, while adjusted operating profit rose 56.8% to £10.9 million. RM

The group says customers are increasingly moving towards fully digital exams and that the modular design of RM Ava could also allow it to compete for professional qualifications and government-backed digital accreditation work.

Cook says selling TTS will allow RM to "capitalise on the high growth, global opportunities in digital assessment and to enhance our educational IT services business."

The separation is also expected to allow another £5 million of annualized cost savings. RM plans to action those savings by the end of FY27, with the full benefit expected in FY28.

Following the disposal, RM expects FY26 adjusted operating profit from continuing operations of £3 million and adjusted EBITDA of £6 million. It says it remains on track for FY27 market expectations of £6.6 million adjusted operating profit and £10.9 million EBITDA after adjusting for TTS.