RM (RM) H1 2026 earnings summary

Executive summary

• Adjusted operating profit rose 200% to £2.7m and adjusted EBITDA increased 48.6% to £5.2m year-over-year, driven by transformation initiatives and cost savings, despite a 4.2% revenue decline.

• Core recurring Assessment revenue grew 7.3%, now representing 93% of Assessment revenue, with 100% renewal of contracts up for renewal and a pipeline more than doubling year-over-year.

• Strategic transformation included legal and operational separation of divisions, major investment in the RM Ava platform, and focus on reducing net debt.

• Net debt remained stable at £59.3m, with supportive lenders and an extended bank facility to January 2028.

• Strategic initiatives focused on business separation, RM Ava development, sales and marketing investment, and working capital flexibility are progressing well.

Financial highlights

• Adjusted operating profit reached £2.7m, with EBITDA at £5.2m (7.4% of revenue), up from 4.7% last year.

• Headline revenue declined by 4.2% to £70.1m, mainly due to declines in TTS and Technology divisions.

• Net finance costs reduced by 18% to £2.7m, driven by lower average net debt.

• Statutory loss after tax was £2.0m, improved from £3.3m loss last year; adjusted diluted EPS at 0.0p versus (2.0)p.

• 22% reduction in corporate overheads contributed to profit improvement.

Outlook and guidance

• On track to meet full-year market expectations for adjusted operating profit and EBITDA.

• Revenue for FY26 expected to be slightly below FY25 due to market headwinds in Technology and TTS.

• Cost savings and division separation expected to deliver over £3m in annualised savings by end of FY27.

• Continued investment in RM Ava through FY27.

• Higher proportion of profit expected from Assessment division.