11 December 2024
RM plc
Full year trading update
FY24 adjusted operating profit
anticipated to exceed expectations
RM plc (“RM”,
the “Company”), a leading global educational technology (“EdTech”),
digital learning and assessment solution provider, is pleased to
provide an update on the Company's anticipated results for the year
ended 30 November 2024 ("FY24").
Trading update
Subject to
completion of the FY24 audit, the Company expects FY24 adjusted
operating profit to be £8.4 to £8.8 million, 5% to 10% ahead of
market expectations,[1]
with adjusted EBITDA of £13 to £14 million. Revenue from
continuing operations, which now excludes the Consortium business,
is expected to be 5 to 6% lower than in FY23.
In Assessment,
approximately £100 million of contracts for RM’s global assessment
platform have been won during FY24, the vast majority of which will
be recognised as revenue from FY25 onwards. This has resulted in
the contracted order book[2]
closing the year 2.25x higher than a year ago. FY24 revenue
growth from these strategic wins has been offset by the expected
declines in a small number of legacy projects coming to an end
during the year.
Despite a
challenging UK Schools market impacting TTS and Technology
revenues, these divisions have also seen improved profitability in
FY24, reflecting a realigned operating model delivering greater
operational efficiencies with a lower cost base.
Net debt
Net debt has
finished the year better than market expectations, having operated
within the Company’s EBITDA & hard liquidity banking covenants
during the period, while allowing for working capital and capex to
fund future growth.
The Company will
update future strategy and outlook when it announces its full year
results in the new year.
Mark Cook, CEO of RM,
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.”
Contacts:
RM
plc investorrelations@rm.com
Mark Cook, Chief
Executive Officer
Simon Goodwin,
Chief Financial Officer
Headland Consultancy (Financial
PR) +44
203 805 4822
Stephen
Malthouse (smalthouse@headlandconsultancy.com)
Chloe Francklin
(cfrancklin@headlandconsultancy.com)
Dan Mahoney
(dmahoney@headlandconsultancy.com)
Notes to
Editors:
About RM
RM was founded
in 1973, with a mission to improve the educational outcomes of
learners worldwide. More than fifty years on, we are a trusted
global EdTech, digital learning and assessment solution provider,
transforming learners, educators, and accreditors to be more
productive, resilient, and sustainable. Our simple approach enables
us to deliver best in class solutions to
optimise accreditation
outcome.
RM is focused on
delivering a consistently high-quality digital experience, acting
as a trusted consultative partner to provide solutions that deliver
real impact for learners worldwide. Our three businesses
include:
-
Assessment - a
global provider of assessment software, supporting exam awarding
bodies, universities, and governments worldwide to digitise their
assessment delivery.
-
TTS (Technical
Teaching Solutions) – an established provider of education
resources for early years, primary schools, and secondary schools
across the UK and to ministries of education and independent
institutions worldwide.
-
Technology - a
market-leading advisor and enabler of ICT software, technology and
bespoke services to UK schools and colleges.
