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 £700,000 and £900,000 for the six months to May 31, swinging from a £300,000 loss a year prior.
Adjusted earnings before interest, tax, depreciation, and amortisation is set to rise to between £3.3 million and £3.5 million from £2.4 million.
Revenue is forecast to fall to £73.0 million to £73.5 million from £78.3 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 £70 million banking facility to July 2027, including amended covenant terms. Net debt increased to £59.6 million from £51.7 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 £21.6 million deficit in 2021 to a £10.5 million surplus. No further contributions are required beyond £1.8 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.
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