LONDON - RM plc, a global provider of educational technology and assessment solutions, has reported that its anticipated results for the fiscal year ended November 30, 2024, are set to exceed market expectations. The company forecasts an adjusted operating profit between £8.4 to £8.8 million, which is 5% to 10% higher than market predictions.
The company's adjusted EBITDA is projected to be £13 to £14 million, despite a 5 to 6% decrease in revenue from continuing operations compared to the previous fiscal year. This decline follows the exclusion of the Consortium business from the company's continuing operations.
During the fiscal year, RM secured approximately £100 million in contracts for its global assessment platform, most of which will contribute to revenue from the fiscal year 2025 onwards. This significant growth in the contracted order book, which is 2.25 times higher than the previous year, compensates for the anticipated decline in revenue from legacy projects.
RM noted challenges in the UK Schools market, which affected the revenues of its TTS and Technology divisions. However, these divisions have improved profitability, benefiting from a realigned operating model that has enhanced operational efficiencies and reduced costs.
The company also reported a better-than-expected net debt position, having complied with its EBITDA and hard liquidity banking covenants. This financial management has allowed for investment in working capital and capital expenditures to support future growth.
Mark Cook, CEO of RM, expressed satisfaction with the company's transformation and strategic progress, particularly in the Assessment division, which secured new digital contracts. He emphasized the company's commitment to reducing net debt and improving profitability.
RM will provide more details on its future strategy and outlook with the announcement of its full year results in the new year. The information in this article is based on a press release statement from RM plc.
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