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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.
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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