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RM (RM) investor relations material

RM H1 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H1 2025 earnings summary15 Jul, 2025

Executive summary

  • Profitability improved in H1, with adjusted operating profit rising to £0.9m from a £0.3m loss, driven by margin gains and over £20m in cost savings, despite a 6.5% revenue decline.

  • Strategic focus on long-term growth, highlighted by the launch of RM Ava, a cloud-based adaptive virtual accreditation platform, positioning for global digital assessment expansion.

  • Over £20m in annualised cost savings delivered since transformation began.

  • On track to meet full-year expectations, with supportive banking partners and an extended facility to July 2027.

  • Statutory loss after tax reduced to £3.3m from £6.8m year-over-year, with diluted EPS improving to (4.0)p from (8.1)p.

Financial highlights

  • Adjusted EBITDA rose 46% year-over-year to £3.5m in H1; adjusted operating profit improved to £0.9m from a £0.3m loss.

  • Headline revenue fell 6.5% to £73.2m, mainly due to declines in TTS and Technology and legacy assessment contracts.

  • Adjusted net debt increased to £59.6m, reflecting continued investment in RM Ava and H2 seasonality.

  • Adjusted diluted EPS improved to (2.0)p from (4.1)p year-over-year.

  • Pension schemes now show a £10.5m surplus, reducing future contributions.

Outlook and guidance

  • H2 revenue, profit, and cash expected to significantly outperform H1, driven by seasonality and new contract wins.

  • Full-year outlook remains in line with market expectations for revenue and adjusted operating profit.

  • Continued investment in RM Ava through FY27; year-end net debt expected within banking covenants.

  • Legal and operational separation of divisions planned to enhance strategic flexibility and unlock cost savings.

  • Assessment revenue growth expected to offset temporary declines in TTS and Technology by year-end.

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Frequently asked questions

RM Plc delivers the products, services and solutions that support learning. It operates through three divisions: RM Resources; RM Assessment; and RM Technology. All three serve the education market and deliver a wide range of products, services and solutions to educational establishments in the United Kingdom and Internationally. RM plc was founded in 1973 and is headquartered in Abingdon, the United Kingdom.

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