RM plc has reported a drop in half-year revenues which it blamed on challenges in the UK schools market – but the EdTech improved profitability.
The global digital learning and assessment solution provider said that for the six months ended 31st May 2026 revenue from continuing operations would be around £70.1 million, down 4.2% from £73.2m last year.
It said this was primarily due to the ongoing challenges facing the UK schools’ market impacting its technology division.
It said in March that it was preparing the ground to dispose of that division ‘and other non-core assets’. The division provides hardware, software, connectivity and services to around 8,000 schools.
This morning it said it has progressed with the legal and operational separation of its divisions, ‘which opens the door for the business to pursue the disposal of non-core assets to materially reduce debt’.
RM, based in Abingdon, Oxfordshire, said profitability had increased in the period due to its transformation strategy.
Adjusted operating profit from continuing operations was up 200% to £2.7m and adjusted EBITDA up 49% to £5.2m, reflecting efficiencies across the business as well as a focus on high-margin growth areas in RM’s assessment business.
In that division, core recurring revenue increased by 7% as RM continued to grow its platform business and sign new long-term contracts, while the forward pipeline for the division has more than doubled as it expands into growth markets including professional qualifications and government-sponsored digital accreditations.
RM also continues to invest in its end-to-end digital assessment platform RM Ava, with £6m expected to be invested in the platform this year.
It said it remains on course to meet full-year market expectations for adjusted operating profit and adjusted EBITDA.
Statutory loss after tax was £2m, down 39.4% from £3.3m year-on-year.
“It is very pleasing to see positive progress across our core assessment business with recurring revenue and profitability increasing,” said Mark Cook, chief executive.
“The foundation for this has been laid by progress made with the strategic initiatives we communicated as part of the equity raise last year, namely the separation of our divisions and the continued investment in our RM Ava platform.
“We are excited by the opportunities that building RM Ava has created, not only within education but also through government sponsored digital accreditations and our continued expansion into global professional qualifications.
“Reducing our debt through the disposal of non-core assets remains a preeminent focus of the board. I will provide an update on any significant progress at the appropriate time.”