RM’s profit booms amid ‘year of transformation’

Education technology firm RM expects better-than-expected results for 2024, describing it as a “year of transformation” amid a “challenging UK schools market.”

The London-listed company said it anticipates adjusted operating profit for the year ending 30 November to be between £8.4m and £8.8m – five to 10 per cent ahead of market expectations.

Adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) are projected to range between £13m and £14m, reflecting operational improvements despite market difficulties.

However, the Oxfordshire-based firm acknowledged that revenue from continuing operations, which excludes its consortium business, is expected to be 5 to 6 per cent lower than in 2023.

Founded in 1973, RM provides IT products and services to schools, colleges, and other educational organisations. The business operates across three segments: Assessment, technical teaching solutions (TTS), and technology.

The company revealed that most of the approximately £100m in contracts won in 2024 for its global assessment platform will contribute to revenue in the next financial year.

This growth has led to a “contracted order book,” strengthening RM’s outlook for 2025.

RM highlighted that both TTS and technology divisions were profitable during the year despite headwinds from the “challenging UK schools market.”

The company attributed this resilience to a “realigned operating model” that delivered “greater operational efficiencies with a lower cost base.”

The transformation has not been without difficulties. In July, RM reported a pre-tax loss of £3.1m—up 121.9 per cent from the previous year.

Post-tax losses totalled £6.8m, compared to an £8.2m profit in 2023, while revenue declined by 9.6 per cent to £79.2m.

Mark Cook, CEO of RM, said: “This has been a year of transformation for RM, and the success of our strategy is reflected in the progress we have made driving profitability and growing our contracted order book.

“Our focus on the significant opportunities for assessment has delivered a number of major new digital contracts, alongside operational improvements throughout the business.”