RM

RM.L

Software - Application · Technology

Price

102.50 GBp

+0.50 (+0.49%)

Market Cap

£99.9M

Exchange

London Stock Exchange

Winston Score

Winston is serious

Below-average fundamentals — multiple weak pillars.

Data as of Aug 23, 2026 · filings through May 31, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Weak

Stability

Weak

Valuation

Strong

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Share count rising — dilution

+2.3% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 84.5M (2021) → 86.4M (2025)

Winston Score History

The full picture

RM plc is a UK-based technology company that sells software, services, and resources to schools and educational institutions. Its main products include school management systems, online assessment tools, and curriculum resources used by teachers and students. The company focuses almost entirely on the education market, making it one of the longer-standing education technology providers in the United Kingdom.

RM earns money through a mix of software licenses, support contracts, and managed services sold to schools, colleges, and exam boards. It operates primarily in the UK, with some international exposure through its assessment division, which helps organizations run digital exams and marking. The company's long relationships with UK schools and exam bodies provide some stability, but its small size, low returns on capital, and dependence on UK education budgets mean that government spending decisions and contract renewals represent a significant ongoing risk to its financial performance.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-4.2% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+47.9% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

£0/ year

0.0% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

22.6%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Runway

~11 months

£12M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

RM has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

36.7%

Modest — 36.7% gross margin

Profit after running costs

Operating Margin

3.7%

Thin — 3.7% operating margin

Return on the money invested

ROCE

11.9%

Below par — 11.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

-0.7%

Shrinking sales (-0.7% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

5/8 quarters

Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash

Cash Conversion

33%

Weak — only 33% of profit becomes cash

Spare cash per sale

FCF Margin

0.1%

Thin free cash flow (0.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

2.01

Heavy debt load (2.01)

Covers its interest

Interest Cover

1.89x

Dangerous — barely covers interest (1.9x)

Interest coverage between 1 and 3. Profits cover interest, but with little room to spare.

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Valuation

Price vs profit

P/E Ratio (TTM)

22.9x

Growth-priced — P/E 22.9

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+11.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (22.9 → 11.8)

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Dividends

Not applicable for this business.

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