RM delivers revenue growth despite education sector challenges

The technology supplier to the education sector reported revenue of £210.9m for the full year ending 30 November 2021

RM chief executive Neil Martin said the company delivered "satisfactory" results in the face of ongoing challenges in the education sector as sales jumped 12 per cent in 2021.

The technology supplier to the education sector reported revenue of £210.9m for the full year ending 30 November 2021 in its preliminary results, up from £189m for the same period in 2020.

Adjusted operating profit grew 22 per cent to £18.5m but statutory profit after tax was down 45 per cent, which RM said was due to "£8.3m of investment program costs expensed following a change in accounting treatment".

The LSE-listed reseller also reported adjusted diluted earnings per share of 16.4p.

"RM delivered a satisfactory financial performance in another year impacted by Covid-19," Martin said.

"While the current environment remains uncertain, market trends are developing positively for the longer-term outlook of RM.

"This has been an important year strategically as we acknowledge a need to adapt if we are going to fully capitalise on the supportive structural opportunities and deliver sustainable growth.

"We refreshed our strategy to sharpen our focus and have made good early progress including a number of key leadership appointments across the group.

"This is an exciting time to be involved in education and I continue to be impressed by the commitment and passion of our colleagues and their desire to improve educational outcomes for our customers."

RM said the company's performance was "inevitably dominated by the pandemic" but that the results reflected "the successful efforts of the group to adapt to the resulting volatility of customer demand".

Trading did not match pre-pandemic levels, with school closures in the first quarter and supply constraints impacting its Resources division - which provides teaching and learning products to support the school curriculum - while the Digital Assessment division was "again constrained by the absence of formal school examinations in the UK".

Its Technology division - which provides managed IT services and software for schools - "had a steady, if unexciting, year", RM added.

"Covid-19 continued to impact the sector with UK schools closed for eight weeks in the first quarter of 2021 and school exams cancelled for a second year," Martin added.

"School attendance generally ran at a lower level due to isolation rules which deteriorated further in the fourth quarter as more children were forced to study from home.

"Disruption was not isolated to the UK and school closures were a common occurrence around the world, although we did see exams sat in the majority of geographies in which we operate."

Martin also said the company is in the process of implementing a new plan for "sustainable growth" following a review of RM's strategy and business model in the second half of last year.