RM half-year impacted by tariffs, school budget pressures, and government funding delays

The company remains on course to meet FY25 expectations despite challenges

RM revenue has plummeted in H1 FY25, despite good performance across its Assessment business, according to the company’s latest trading update.

Its income landed between £73m and £73.5m, compared to £78.3m in H1 FY24.

The half-year figures were impacted by current UK schools budget pressure, as well as the delay of government funding for initiatives in technology.

The firm was also deeply impacted by the influence of the Trump admin’s proposed tariffs through Teacher Technology Solution (TTS), the international school supplier part of the RM group.

TTS alone accounts for around two per cent of the organisation’s revenue.

On the other hand, RM Assessment remains the company’s main generator of growth, as the business saw it revenue increase in the first half of the year.

RM Assessment provides assessment software to support exam awarding bodies, universities, and governments.

Its core platform revenue rose 18 per cent, while total recurring revenue surged 20 per cent.

With Assessment’s evolution expected to stay on an upward trajectory in H2 FY25, fuelled by “strategic wins”, the results from this segment should offset the decline in TTS and RM Technology in the firm’s full year results.

Adjusted operating profit in H1 FY25 is expected to be located within a £0.7 to £0.9m range, from a £0.3m loss at the same period last year.

Adjusted EBITDA is situated between £3.3m to £3.5m this half year, compared to £2.4m in H1 FY24.

These results on the up reflect the organisation’ progress on margin improvement and cost control, with annual cost savings of over £20m delivered to date.

RM has also rebranded its accreditation platform to RM Ava.

“I am pleased to report that RM continues to be on a strong trajectory following our FY24 results, with profitability improving and increased momentum across our core Assessment business, despite less favourable market conditions in our other divisions, as previously guided,” said Mark Cook, CEO of RM.

“We remain on track to achieve our targets for the year, and I am excited about the new opportunities that the recent launch of RM Ava opens up for the business, our customers and learners globally.”

RM Technology, the company’s business which serves as an advisor and enabler of ICT software, connectivity and technology and services to UK schools and colleges, ranks number 79 in CRN’s Top VARs 2025 list.