RM revenue impacted by UK schools market and Middle East war in H1
The VAR expects its FY26 top line to be slightly below the previous year
Oxfordshire-based educational technology, digital learning and assessment solution provider RM has reported mixed results for the six months ending 31 May, impacted by “ongoing challenges in the UK schools market.”
Top line from continuing operations fell 4.2 per cent to £70.1m, compared with £73.2m during the same period last year.
Adjusted operating profit rose from £0.9m to £2.7m, while adjusted EBITDA jumped 48.6 per cent to £5.2m.
RM said the improved profitability reflected the benefits of its transformation programme, including cost savings and an increase in core recurring Assessment revenue.
Revenue breakdown
The Assessment division delivered flat revenue of £20.5m, but recurring revenue increased 7.3 per cent to £19m and now represents 92.7 per cent of the unit’s turnover.
RM said its Assessment pipeline has more than doubled year-on-year, driven by opportunities in education, government-sponsored digital accreditations and professional qualifications.
The company has continued investing in RM Ava, its adaptive virtual accreditation platform launched in June 2025, with a further £3.7m invested during the first half.
Cumulative investment in the platform now stands at £13.5m out of a planned £20m.
RM said it is around 65 per cent through its strategic investment in Ava and expects to invest a further £6m during FY26.
Technology revenue dropped 9.1 per cent to £20m, compared with £22m a year earlier, due to what the company described constrained school budgets and lower pricing on the long-term renewal of the division’s largest customer during FY25.
RM also said the UK government’s Connect the Classroom initiative has progressed more slowly than expected.
On the other hand, the division secured and renewed multi-year contracts, including five-year extensions with WMG Academy Trust and Alpha Schools.
RM Technology ranks number 79 on CRN’s Top VARs list.
Revenue at the group’s teacher technology solution (TTS) business declined 3.6 per cent to £29.6m.
RM attributed the fall primarily to the war in the Middle East impacting international orders, alongside its decision not to repeat a site-wide discount offered during the prior year.
International revenue from the unit dropped 4.9 per cent to £7.7m, while UK revenue decreased 3.6 per cent to £29.6m.
“It is very pleasing to see positive progress across our core Assessment business with recurring revenue and profitability increasing,” said Mark Cook, CEO of RM.
“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.”
Expectations and revenue history
RM expects FY26 revenue to be slightly below the previous year due to continued challenges in Technology and the short-term impact of the war in the Middle East on TTS.
The group maintained its full-year expectations for adjusted operating profit and adjusted EBITDA, which previously stood at £13.6m and £19m, respectively.
These results follow a year of declining top line for the organisation, as earnings from continuing operations dipped 2.5 per cent to £162.1m in FY25, already impacted by the performance of its TTS and Technology units.