RM plc: Successful negotiation of bank covenants waiver for August 2023 (1712203)

RM plc (RM.) 
RM plc: Successful negotiation of bank covenants waiver for August 2023 
29-Aug-2023 / 07:00 GMT/BST 
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29 August 2023 
 
 RM plc 
Successful negotiation of bank covenants waiver for August 2023 
 
RM plc, a leading international supplier of technology and resources to the education sector (LSE: RM) ("RM", the 
"Company"), today provides an update on the successful renegotiation of a short-term unconditional covenant waiver with 
its lenders, and the ongoing discussions with its lenders to extend this covenant waiver to cover the 30 November 2023 
covenant test date. 
 
As announced in its half year results on 9 August 2023, the business operated within its existing financial covenants 
for the first half of 2023 but indicated that it expected to breach the facility's LTM EBITDA covenant from the third 
quarter of the FY2023 financial year, albeit the Company is not expected to breach its liquidity covenant test in FY23 
or FY24. The Directors therefore concluded that it remained appropriate to prepare the half-year financial statements 
on a going concern basis. 
 
The Banks currently remain supportive of management, recognising the issues that the business has faced and also the 
steps taken through this transformation period (cost savings and restructuring) to return to previous levels of 
financial performance. In light of the continued headwinds and the need for the annualisation of savings to mature, the 
Company and the Banks entered into discussions to agree suitable waivers and amendments to its existing facility. 
 
RM announces that it has successfully received waivers with its lenders for its August 2023 EBITDA financial covenant 
and continues to comply with the conditions of each lender with regards to that waiver and the respective facility 
agreement. The negotiation of a suitable covenant waiver for the period ending 30 November 2023 is ongoing, and we 
expect to be able to announce its conclusion before the end of the current financial year. 
 
The Company has also commenced the renegotiation of an amendment and extension of its lending facility, which matures 
in July 2025. The Company is working with its advisers and the Banks, and the Company expects renegotiation to have 
concluded by the end of Q1 2024. 
 
Mark Cook, Chief Executive of RM, commented: 
 
"Whilst the last financial year has been extremely challenging, I am grateful for the continuing support of our lenders 
and the amendment to our facility's covenants. Both lenders have held long term supportive relationships with the Group 
over many years and continue to support RM as it implements its Transformation Programme to reduce its net debt and 
return the Company to growth and profitability." 
 
 
Enquiries: 
RM plc       [e-mail] 
Mark Cook, Chief Executive Officer 
Emmanuel Walter, Chief Financial Officer (interim) 
Fiona O'Nolan, Investor Relations 
 
Headland Consultancy (Financial PR)                    [phone] 
Stephen Malthouse ([e-mail]) 
Chloe Francklin ([e-mail]) 
Jemma Savage ([e-mail]) 
 
 
 
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 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 
 
 
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Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
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ISIN:           GB00BJT0FF39 
Category Code:  MSCH 
TIDM:           RM. 
LEI Code:       2138005RKUCIEKLXWM61 
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State 
Sequence No.:   267294 
EQS News ID:    1712203 
 
End of Announcement  EQS News Service 
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(END) Dow Jones Newswires

August 29, 2023 02:00 ET (06:00 GMT)