RM to raise £13.5m through share placing for growth strategy

LONDON - RM plc (LSE:RM), an education technology and assessment solutions provider, announced Friday it plans to raise approximately £13.5 million through a placing of new ordinary shares at 95 pence per share, representing a 5% discount to Thursday’s closing price.

The company will use the funds primarily to strengthen its core assessment business, with approximately £6 million allocated to accelerate development of RM Ava, a digital assessment platform launched in June 2025. An additional £1 million will boost sales and marketing capabilities for the assessment division.

Between £2-3 million will fund separation work to facilitate the disposal of non-core assets, with the remaining £2-3 million earmarked for general working capital purposes.

RM’s assessment division has been identified as the company’s core asset following a strategic review. The division has seen significant growth, with its contracted order book reaching approximately £100 million as of May 2025, compared to £40.8 million in November 2023.

"The majority of the net proceeds will be used as capital investment into RM Ava’s development and to invest in sales and marketing capability to drive its growth," the company stated in its press release.

RM aims to double its assessment division’s current revenues and achieve an EBITDA margin exceeding 20% in the medium term. The company also expects to generate approximately £3 million in corporate overhead savings by the end of 2027 through business simplification.

Singer Capital Markets is acting as sole bookrunner for the placing, which is not conditional on shareholder approval. Settlement and admission of the new shares are expected to occur on October 14, 2025.

The announcement follows RM’s strategic turnaround efforts, which have included management changes, restructuring, and delivery of £20 million in annualized cost savings.

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