RM delivers strong profit growth as Assessment momentum builds

RM plc (LON:RM), a leading global educational technology (EdTech), digital learning and assessment solution provider, has reported its interim results for the six months ended 31 May 2026.

Financial highlights 

• Adjusted operating profit from continuing operations has increased by 200.0% to £2.7m (HY25: £0.9m) and adjusted EBITDA by 48.6% to £5.2m (HY25: £3.5m), reflecting the continued benefits of the transformation programme delivering further cost savings, and an increase in core recurring Assessment revenue.
• Revenue from continuing operations is down by 4.2% to £70.1m primarily due to the ongoing challenges facing the UK schools’ market impacting the Technology division.
• Core recurring revenue in Assessment³ has increased by 7.3% despite overall Assessment revenue being flat at £20.5m (due to a high level of one-off project work last year).
• Adjusted net debt of £59.3m is broadly the same as in HY25, with a further £3.7m invested during HY26 in RM Ava, our adaptive virtual accreditation platform, taking the cumulative amount spent to £13.5m out of the total £20.0m investment. The Company has extended its bank facility to 5 January 2028.
• Movement in adjusted diluted EPS from continuing operations due to smaller loss after tax.

Assessment

• Recurring revenue, now £19.0m (HY25: £17.7m), makes up 92.7% of Assessment revenue (HY25: 86.3%).
• 100% of Assessment’s revenue up for renewal during HY26 has been successfully renewed, continuing the trend of being able to retain strategic customers.
• Assessment’s adjusted operating margin has increased to 25.9% (HY25: 17.6%) reflecting a continuation of margin improvement through cost savings, operational efficiencies, and an increase in core recurring revenue.
• Pipeline of opportunities has grown by more than 100% compared to a year ago with RM now targeting multi-year government sponsored digital accreditations as well as more professional qualifications.
• On track to invest a further £6m in FY26 in the development of our strategic RM Ava platform, in line with equity raise commitments, which will drive future growth.
• Separation work is progressing well with the Assessment business now a separate legal entity and having gone live with its new standalone ERP, Sage X3.

TTS 

• TTS has continued to focus on product development, introducing 67 new own-IP products in HY26, maintaining its key differentiation factor.
• Sales were slightly down by 3.6% to £29.6m (HY25: £30.7m) owing to the war in the Middle East having impacted international orders, and a strategic decision not to apply a site wide discount unlike in HY25, to protect margin.
• Reflecting our pricing strategy, alongside efficiency measures, divisional contribution is 16.7% higher than in HY25.

Technology 

• Revenue down 9.1% at £20.0m (HY25: £22.0m), reflecting the continuing challenges in the UK schools’ market with school budgets constrained.
• The division has, nevertheless, continued to win and renew contracts which provide recurring revenues for years ahead.
• Connect the Classroom government initiative has progressed more slowly than expected although we remain hopeful that this initiative will soon be reinstated.

Current trading and FY26 outlook 

• RM remains on course to meet full year market expectations for adjusted operating profit (“AOP”) and adjusted EBITDA.⁴ 
• A greater proportion of AOP than previously expected for the full year to come from our core Assessment division.
• Revenue is expected to be slightly down on FY25, as a result of the challenging market and macroeconomic headwinds impacting Technology and the short-term impact on TTS caused by the war in the Middle East.
• Strategic priority remains to materially reduce net debt and scale high growth Assessment business.

Mark Cook, Chief Executive of RM, said  

“It is very pleasing to see positive progress across our core Assessment business with recurring revenue and profitability increasing. The foundation for this has been laid by progress made with the strategic initiatives we communicated as part of the equity raise last year, namely the separation of our divisions and the continued investment in our RM Ava platform. We are excited by the opportunities that building RM Ava has created, not only within education but also through government sponsored digital accreditations and our continued expansion into global professional qualifications.

Reducing our debt through the disposal of non-core assets remains a preeminent focus of the Board. I will provide an update on any significant progress at the appropriate time.”

Notes 

¹   Throughout this statement, adjusted operating profit, adjusted EBITDA excluding share-based payments, adjusted loss before tax and adjusted EPS are Alternative Performance Measures, stated after adjusting items (see Note 4) which are identified by virtue of their size, nature and incidence. The Group reports adjusting items which are used by the Board to monitor and manage the performance of the Group, in order to ensure that decisions taken align with the Group’s long-term interests. The treatment of adjusted items is applied consistently year-on-year. 

²   Adjusted net debt is defined as the total of borrowings less capitalised fees, cash and cash equivalents and overdrafts. Lease liabilities of £17.2m (30 November 2025: £15.0m) are excluded from this measure as they are not included in the measurement of adjusted net debt for the purpose of covenant calculations.

³   Recurring revenues in Assessment is made up of digital platform revenue and third-party scanning and excludes one-off project work.

⁴   Prior to this update, the Company believes that market expectations for FY26 adjusted operating profit and adjusted EBITDA were £13.6m and £19.0m, respectively.

Presentation details 

A presentation by Management for investors and analysts will be published on the company website later this morning at https://www.rmplc.com/.