RM plc (LON:RM”), a leading global educational technology, digital learning and assessment solution provider, has reported its full year results for the year ended 30 November 2025 and provides an update on its strategy.
Improved profitability driven by strategic focus on key growth areas
Financial highlights
| £m | FY25 | FY24 | Variance |
| Revenue from continuing operations | 162.1 | 166.1 | (2.5)% |
| Profit/(loss) before tax from continuing operations | 3.2 | (12.1) | 126.5% |
| Loss from discontinued operations1 | – | (0.9) | n/a |
| Statutory profit/(loss) after tax | 2.2 | (4.7) | 146.3% |
| Diluted EPS from continuing operations | 2.5p | (4.6)p | 154.3% |
| Adjusted performance measures2: | |||
| Divisional contribution excluding corporate costs | 32.3 | 32.8 | (1.5)% |
| Divisional contribution margin | 20.0% | 19.8% | 0.2% |
| Adjusted operating profit from continuing operations | 11.5 | 8.6 | 33.2% |
| Adjusted operating profit margin | 7.1% | 5.2% | 1.9% |
| Adjusted EBITDA | 16.5 | 13.7 | 19.9% |
| Adjusted profit before tax from continuing operations | 5.5 | 2.4 | 126.0% |
| Adjusted diluted EPS from continuing operations | 4.9p | 11.7p | (58.1)% |
| Adjusted net debt3 | 50.6 | 51.7 | 2.1% |
- Adjusted operating profit from continuing operations has increased substantially by 33.2% to £11.5m (FY24: £8.6m) and adjusted EBITDA by 19.9% to £16.5m (FY24: £13.7m).
- Profit before tax is £3.2m marking the first reported statutory profit since FY21, reinforcing RM’s upward trajectory in generating profitability.
- Revenue from continuing operations is slightly down reflecting the ongoing challenges facing the UK schools’ market in H1 impacting the Technology and TTS divisions.
- Significantly, RM’s higher margin, core Assessment division has achieved 19.9% revenue growth with digital platform revenue up by 17.3% versus FY24.
- Adjusted net debt has reduced by £1.1m to £50.6m following the equity placing last October and a further £6m being invested in RM Ava, our adaptive virtual accreditation platform. The Company has operated within its hard liquidity and EBITDA covenants throughout FY25.
- Reduction in adjusted diluted EPS from continuing operations due to £9.2m deferred tax credit in FY24.
- Successfully agreed with the trustees of the defined benefits pension schemes to cease further contributions from the Company, with the schemes now showing a technical provisions surplus.
Core Assessment business continues to grow and drive margin improvement
- The substantial contracted order book4 of Assessment is maintained at £95.5m at end of FY25 (FY24: £95.7m).
- 99% of Assessment’s revenue up for renewal during FY25 has been successfully renewed, demonstrating strong ability to retain strategic customers.
- Assessment’s adjusted operating margin has increased from 17.5% to 22.9% reflecting the focus on margin improvement this year.
- RM Ava platform KPIs have strengthened:
- Assessment digital platform revenue grew 17.3% year on year (FY24: 12.0%), Assessment recurring revenue (including scanning) grew 15.5% year on year (FY24: 10.0%).
- Over 20m tests successfully processed through the Assessment platforms.
- Invested a further £6m during the year in the development of our strategic RM Ava platform, which will drive future growth.
- The introduction of our AI marking tool has been well received with a number of proof of concepts having been secured.
TTS
- TTS has continued to develop exciting products, launching 131 new products using our own IP in FY25.
- UK sales were impacted by the tough schools market and international sales were constrained by the US tariffs in H1.
- Further investment has been made in Dubai and TTS is ready to capitalise on growing market opportunities overseas.
Technology
- Technology sales were impacted by delays in key initiatives such as Connect the Classroom funding and a general slowness across the UK schools market.
- The division has secured a number of managed services contract renewals and wins which represents recurring revenue for years to come.
Current trading and FY26 outlook
Trading in the first months of the year has been consistent with the Board’s expectations, with the full-year outlook remaining in line with expectations.5 We are progressing with the work required to deliver the legal and operational separation of divisions that will help facilitate disposals and unlock future cost savings. At the same time, we continue to invest in RM Ava which is the key driver of future growth.
Mark Cook, Chief Executive of RM, said
“This year has seen us build real momentum in executing our strategy as we continue to grow our core Assessment platform revenue and drive a meaningful increase in our profitability year on year. This is underpinned by our relentless focus on providing a brilliant experience for learners globally and the positive impact from the cost saving initiatives we put in place.
“Looking ahead, we remain focused on driving growth, by continuing to invest in RM Ava and our core, higher margin, Assessment business. Simultaneously, we are actively working on delivering the operational and legal separation necessary to facilitate future disposals of non-core assets and further improve efficiencies.”
“I’m really pleased with what we have achieved so far, and I’d like to take this opportunity to thank all my colleagues for their hard work in delivering this set of results.”
Board change
As part of the Board’s continued focus to reduce central costs and overheads in the business, Jamie Murray Wells, Non-Executive Director, will be stepping down from the Board at the forthcoming AGM in May and will therefore not stand for re-election.
Helen Stevenson, Chair of RM, said
“Jamie has played an important role on the Board during RM’s transformation over the last two and a half years and I am very grateful for his contribution. As Chair of the ESG Committee, he has overseen a marked improvement in this space, helping to ensure that ESG risks and opportunities are integrated into RM’s business strategy. On behalf of the Board, I express my thanks to Jamie and wish him well for the future.”
Notes
1 Discontinued operations in FY24 related to RM Consortium.
2 Throughout this statement, adjusted operating profit, adjusted EBITDA, adjusted profit/(loss) before tax and adjusted diluted EPS are Alternative Performance Measures, stated after adjusting items (see Note 3) which are identified by virtue of their size, nature and incidence. Their treatment is applied consistently year-on-year, with the exception of adjusted EBITDA which has been redefined to exclude share-based payment charges (on the basis it is a non-cash item) and comparatives have been restated.
3 Adjusted net debt is defined as the total of borrowings less capitalised fees, cash and cash equivalents and overdrafts (see Note 3). Lease liabilities of £15.4m (2024: £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 (see Note 15).
4 Contracted order book represents secured revenue, supported by a contract, that is yet to be recognised as revenue in the financial statements. We have introduced this metric for our Assessment division to provide greater visibility of the increasing trend towards securing longer-term strategic contractual revenue.
5 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/.
