RM plc Exceeds Profit Expectations Amid Market Challenges

RM plc has announced that its full-year adjusted operating profit for 2024 is anticipated to exceed market expectations. The profit is expected to range from £8.4 to £8.8 million, representing a 5% to 10% increase above forecasts. Additionally, the company forecasts an adjusted EBITDA between £13 to £14 million. Despite a 5-6% decrease in revenue from continuing operations, RM has secured approximately £100 million in contracts for its global assessment platform, contributing to a significant increase in its contracted order book by 2.25 times.

In the UK, the challenging schools market has impacted TTS and Technology revenues. However, these sectors have shown improved profitability due to operational efficiencies resulting from a realigned operating model. RM also reports that its net debt concluded the year better than expected, maintaining adherence to its EBITDA and liquidity covenants.

CEO Mark Cook highlighted RM's strategic focus on assessment opportunities and operational enhancements. The company plans to announce its future strategies and outlook with the full-year results.