RPMGlobal defends earnings transparency after advisory business divestment

RPMGlobal addressed an ASX query concerning its FY2025 earnings, stating it withdrew guidance on February 24, 2025, after announcing its Advisory business divestment for an enterprise value of A$63.0 million. This divestment, completed on April 2, 2025, materially impacted financial market guidance as the Advisory division would not operate for the full year. Due to numerous "moving parts," including corporate expenditure changes and the unknown financial impact of a Transition Service Agreement, RPM felt unable to provide reliable FY2025 financial guidance and withdrew it.

The company's FY2025 results show total revenue of A$105.4 million, underlying EBITDA of A$12.3 million, and underlying NPAT of A$6.9 million, when pro forma adjusted for the Advisory segment. This compares to an analyst consensus of A$103.7 million for total revenue, A$14.7 million for underlying EBITDA, and A$9.0 million for underlying NPAT. RPM also reported strong software sales, with full-year TCV sales reaching A$100.8 million, up 30.9% from FY2024.

RPM confirmed the market was fully informed about the Advisory Divestment's likely material impact, and its annual recurring revenue (ARR) and total contract value (TCV) were disclosed on July 4, 2025. The company did not believe a material variance existed that would affect its securities' price before the full-year audit completion on August 26, 2025. RPM also stated that FY2026 guidance in its Investor Presentation might have influenced trading in its securities.