The Channel logo

News

By | Kelly Fiveash 10th February 2011 10:07

Subdued RM says government cuts challenge its business

School funding shake-up hard to swallow

IT schools supplier RM has blamed the government's allocation of education funds for what it described as "subdued" market conditions.

The company issued an interim management statement this morning in which it said it expected to see a decline in UK Learning Technologies sales in the 12-month period to September 2011.

"Government announcements indicate that, whilst total revenue funding for schools will increase year-on-year, there will be winners and losers," said RM boss Terry Sweeney.

"The amount of capital funding devolved to individual schools has also decreased significantly. Against these short-term difficulties, we continue to win, renew and extend long-term contracts. We are also seeing encouraging levels of demand in our Education Resources business."

RM added that trading in the company's first quarter of the year had been flat, but said it was in line with the current market consensus range.

The company said it had reached financial close for the last five remaining Building Schools for the Future projects. Additionally it negoitated extensions for two other BSF contracts.

RM said in November last year that committed revenue was down – because of the coalition government's review of the school building programme. ®

comment icon Read 9 comments on this article alert Send corrections

Opinion

The full Spanglish breakfast: mealy pudding, bacon, black pudding, sausages, fried egg, toast
Blood image

Trevor Pott

Can the storage giant overcome a lack of necessary leadership?

Chris Mellor

Why overlapping kit from a merger equals a disaster in waiting
management cloud2

Gavin Clarke

The executioner turns gambler as HP's PCs are set to go

Features

No, silly... he was the fall guy for years of Finnish folly
Fraud image
Frodo and the Ring
Microsoft's strategy is to make Store apps popular. Good luck with that