RM (RM) H2 2025 earnings summary

Executive summary

• Adjusted operating profit rose to GBP 11.5 million from GBP 8.6 million, with adjusted EBITDA up to GBP 16.5 million, and overall revenue declined 2.5% to GBP 162.1 million.

• Assessment division revenue surged 19.9%, while TTS and Technology divisions faced declines due to UK budget pressures and US tariffs.

• Returned to statutory profit before tax for the first time since FY 2021, with profit before tax of GBP 3.2 million and statutory profit after tax of GBP 2.2 million.

• Raised GBP 13.5 million in an oversubscribed equity raise to support transformation, RM Ava development, and net debt reduction.

• Advanced business simplification, including legal and operational separation of divisions.

Financial highlights

• Adjusted operating margin improved to 7.1% from 5.2% year-over-year.

• Adjusted net debt reduced to GBP 50.6 million.

• Adjusted profit before tax increased to GBP 5.5 million from GBP 2.4 million.

• Net cash inflow from operating activities was GBP 7.5 million.

• Corporate overheads reduced by 13.8%, now 12.9% of total revenue.

Outlook and guidance

• Revenue from continuing operations expected to grow, with a higher proportion from high-margin Assessment division and strong contracted order book.

• Continued investment in RM Ava and sales/marketing to support growth through 2027.

• Focus on reducing net debt through business simplification and disposal of non-core assets.

• Trading in early FY 2026 in line with board and market expectations.

• FY26 priorities include business simplification, net debt reduction, RM Ava development, and customer experience.