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Education budgets on track for fiscal 2010 says RM

Microscope contributor

RM says it has made "good progress" across all three of its business divisions in the seasonally weaker first half of fiscal 2010 and remains confident that education budgets will hold strong for the rest of the year.


The Back To School quarter is traditionally when the education lynchpin comes into its own but today it described trading from October to February as being in line with expectations.


"We are making good progress in each of our three divisions and with our international business," said RM CEO Terry Sweeney.


During the six month period, RM won several Building Schools for the Future contracts including one with Essex County and Hull City Council, taking its project tally to 15.


It has now delivered ICT services to 45 BSF schools, and has an order book that equates to £445m worth of business, giving it a 40% market share.


The Assessment and Data division won contracts with QCDA and International Baccalaureate, while the Education Resources arm added to its management team and invested in a new warehouse facility.


Education budgets for individual schools were expected to fall this year with ICT at risk in the wider context of public sector cuts however RM remained bullish about the portion to be set aside when budgets are allocated.


"In December, the Government's PBR confirmed year-on-year growth in education spending plans for government year 2010/ 2011. These budgets will be allocated to schools by March 2010," said Sweeney.


"This planned increase is on top of real-terms growth in the current government year. Against this background, our expectations for the year are unchanged," he added.

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