RM (RM) H1 2025 earnings summary

Executive summary

• Profitability improved with adjusted operating profit rising to £0.9m from a £0.3m loss, driven by margin improvements and over £20m in cost savings delivered year to date.

• Revenue declined 6.5% year-over-year to £73.2m, mainly due to lower sales in Learning Resources and Technology divisions, and UK school budget pressures and US tariffs.

• RM Ava, a cloud-based assessment platform, launched in June 2025, positioning for global digital assessment growth and future profitability.

• Banking facility extended to July 2027, reflecting lender confidence and providing financial flexibility.

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

Financial highlights

• Adjusted EBITDA rose 45.8% to £3.5m, up from £2.4m in H1 last year.

• Adjusted net debt increased to £59.6m, mainly due to continued investment in RM Ava.

• Annualised cost savings of over £20m delivered since the start of the transformation.

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

• Statutory loss before tax from continuing operations improved by 34.8% to £4.3m.

Outlook and guidance

• H2 performance expected to be materially higher in revenue, profit, and cash due to seasonality and new contract wins.

• Full year revenue growth anticipated, led by Assessment division; adjusted operating profit expected in line with market expectations.

• Continued CapEx investment in RM Ava is planned through FY 2027, with total platform build expected to reach £20m.

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

• Further strategic Assessment customer wins anticipated in H2, with continued focus on international expansion for TTS and new contract opportunities for Technology.