RM plc: Strategy timetable and closure of the Consortium business

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE UK VERSION OF THE MARKET ABUSE REGULATION (EU 596/2014) WHICH IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

For immediate release

24 November 2023

RM plc

Strategy timetable and closure of the Consortium business

RM plc (“RM”, the “Company”), today announces in line with its strategy to be a leading global educational technology, digital learning and assessment solution provider, that the Board has taken the decision to close its loss-making Consortium business, part of the RM Resources division.

As announced by Mark Cook, CEO, at the half year results in August, focus in the second half has been on the development of a strategic roadmap for RM to create a simpler, more profitable business. This included a detailed review of RM’s portfolio to identify core areas of the business which were best placed to capitalise on the substantial EdTech opportunities. Full details of its strategic roadmap will be provided as part of RM’s full year results announcement in the New Year.

The Consortium business, the provider of education supplies and resources to schools, has experienced an extended period of underperformance following the negative impact of the rollout of a new ecommerce platform in 2022. Today the Company announces that it has taken the difficult decision to close this business from the end of December. The decision to close Consortium is in line with the future strategic direction for the Company and has been made with the full cooperation and support of its lenders. The decision will also enable RM Resources management to focus on its successful TTS business.

In the accounts for the year ending 30 November 2023, the Board expects to make a material write off of the carrying value of Consortium and its related assets as a non-cash item, and to make an additional provision for exit costs but there is not expected to be any cash impact in this current financial year.

The Company plans to issue a trading update in December for its financial year ending 30 November 2023.

Mark Cook, Chief Executive of RM, said

“The decision to simplify the business will enable us to better weather the macro challenges and build a platform for growth. Our 50-year heritage, leading market positions, IP, expertise, and deep customer knowledge, mean we are well positioned to take advantage of the structural drivers in the growing global EdTech industry and deliver for our stakeholders.

But, at the same time, it is with regret that we have decided to close Consortium, a business full of hugely talented and valued colleagues. Unfortunately, its underperformance is a drag the Company can no longer afford and has clouded the good progress made elsewhere. I would like to take this opportunity to thank all my colleagues across RM for their continued commitment and hard work throughout this time.

Looking ahead, I am confident that our new strategy, which we will unveil at the full year results, will shape RM into a pioneer of education technology, enriching the lives of learners globally.”

Contacts:

RM plc                     investorrelations@rm.com

Mark Cook, Chief Executive Officer 

Simon Goodwin, Chief Financial Officer

Fiona O’Nolan, Investor Relations, Equitory 

Headland Consultancy (Financial PR)                      +44 203 805 4822

Stephen Malthouse (smalthouse@headlandconsultancy.com)

Chloe Francklin (cfrancklin@headlandconsultancy.com)

Dan Mahoney (dmahoney@headlandconsultancy.com)

Notes to Editors:

RM provides market-leading products and services to educational institutions, exam bodies and international governments which improve, simplify and support education and learning. The education sector is transforming, and RM is well positioned to capitalise on this through its three divisions.

• RM Resources is the established provider of education resources for early years, primary schools, and secondary schools across the UK and to 80 countries internationally.
• RM Assessment, trading under the Consortium and TTS brands, is a leading provider of assessment software, supporting exam awarding bodies, universities, and governments worldwide to digitise their assessment delivery.
• RM Technology is a market-leading supplier of ICT software, technology and services to UK schools and colleges