RM PLC on Tuesday reported a swing to a full-year pretax loss, impacted by restructuring costs and a challenging education market, but said its outlook for the current year remains in line with forecasts.
The Abingdon, England-based provider of educational technology and assessment solutions posted a pretax loss of £12.1 million for the financial year ended November 30, compared to a restated pretax profit of £12.4 million a year prior. Revenue fell 5.5% to £166.1 million from £175.9 million.
The company attributed the decline to the closure of its loss-making Consortium business, which was completed early in the year, alongside subdued demand in UK and international education markets.
RM noted that its Assessment division recorded strong digital platform growth, but this was offset by the planned end of certain non-core contracts.
Despite the revenue decline, RM’s adjusted operating profit from continuing operations rose sharply to £8.6 million from £300,000 million, reflecting improved profitability in its remaining divisions following cost-cutting measures.
‘Trading in the first months of the year has been in line with the board‘s expectations, and the full-year outlook remains in line with market expectations,’ RM said.
The company’s Assessment unit secured major long-term digital transformation contracts with the International Baccalaureate and Cambridge University Press & Assessment, helping to more than double its contracted order book to £95.7 million from £40.8 million.
RM also implemented further cost reductions, delivering £10.6 million in annualised savings, including the closure of office space, warehouse consolidation, and streamlining of its operating model.
The company said it remains focused on reducing net debt, which increased to £51.7 million from £45.6 million, while continuing to invest in its global accreditation platform.
Shares in RM closed down 3.5% at 97.00 pence in London on Tuesday.
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