Full Year 2025 RM PLC Earnings Call Transcript
Key Points
- RM PLC (LSE:RM.) reported a significant increase in profitability, with adjusted operating profit up 33.2% and adjusted EBITDA improving by 20%.
- The Assessment division showed strong performance with a 20% revenue growth and an increase in adjusted operating margin from 17.5% to 22.9%.
- The launch of RM Ava, a new adaptive virtual accreditation platform, marks a major step forward in RM PLC's assessment-focused growth strategy.
- The equity raise in Q4 brought in GBP13.5 million, which was significantly oversubscribed, indicating strong investor confidence.
- International sales in the TTS division increased by 20% in the Middle East and North Africa region, showing promising growth potential.
- Overall revenue was marginally lower than 2024 due to challenges in the UK schools' market impacting the Technology and TTS divisions.
- The TTS division faced a challenging year with US tariffs and pressure on UK schools' budgets, resulting in lower revenue.
- The Technology division experienced a 12.5% decrease in revenue due to delays in key initiatives and tighter school budgets.
- There were delays in major international orders for the TTS division, which are now expected to land in FY26.
- The business remains heavily reliant on the second half of the year for cash generation, which poses a risk to working capital flexibility.
Hello, and welcome to RM's full year results for 2025. I'm Mark Cook, Chief Executive, and I'm joined by Simon Goodwin, our Chief Financial Officer.
In today's update, I'll share an overview of RM's results for 2025. Simon will cover a more detailed review of the financials. I'll then update on the progress we're making on our strategy.
As a global EdTech company, we're proud of the part we play in education and the difference we make to the lives of learners every day. Every product we launch, every classroom we kit out, every assessment we enable makes a real impact. 2025 was a year of building momentum. We focused on three things: firstly, positioning ourselves to capture the major market opportunity in digital investment and marketing; secondly, strengthening our financial position and improving profitability; and thirdly, setting our business up for sustainable long-term growth. That growth will help us keep improving educational outcomes around the world.
I'm really proud that profitability has grown
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