(Alliance News) - RM PLC on Tuesday said profitability improved in the first half of financial 2025 despite a fall in revenue, with the firm reaffirming it remains on track to meet its full-year expectations.
The Abingdon, England-based supplier of technology and resources to the education sector expects adjusted operating profit of between GBP700,000 and GBP900,000 for the six months to May 31, swinging from a GBP300,000 loss a year prior.
Adjusted earnings before interest, tax, depreciation, and amortisation is set to rise to between GBP3.3 million and GBP3.5 million from GBP2.4 million.
Revenue is forecast to fall to GBP73.0 million to GBP73.5 million from GBP78.3 million, which RM attributed to UK school budget pressures and delays in government funding, as well as tariffs affecting its US business.
RM said the Assessment division remained its key growth driver, with platform revenue up 18% and recurring revenue up 20% year-on-year. A growing order book and further contract wins are expected to support a stronger second half.
RM also secured an extension of its existing GBP70 million banking facility to July 2027, including amended covenant terms. Net debt increased to GBP59.6 million from GBP51.7 million at the end of November, reflecting seasonal cash outflows and investment in its RM Ava accreditation platform.
Additionally, RM said triennial valuations completed in March showed its closed defined benefit pension schemes moved from a GBP21.6 million deficit in 2021 to a GBP10.5 million surplus. No further contributions are required beyond GBP1.8 million already committed.
Chief Executive Officer Mark Cook said: "RM continues to be on a strong trajectory…We remain on track to achieve our targets for the year, and I am excited about the new opportunities that the recent launch of RM Ava opens up for the business."
Shares in RM were up 7.3% at 88.00 pence in London at midday on Tuesday.
By Eva Castanedo, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.