Government school cuts hit RM

6th Jul 2010 11:05

Schools IT equipment supplier RM Group said its Building Schools for the Future (BSF) projects may be "scaled back significantly," following a review by the government on the programme. The Department for Education (DfE) said yesterday that existing BSF projects that reached financial close will continue as planned but projects that have a "preferred bidder" appointed will be reviewed on a case-by-case basis.RM is preferred bidder on seven BSF projects, with a total value of £200m, of which £121m was included in its interim revenue figures. "These projects will now be subject to review and may be scaled back significantly," said the group.RM said it also has 14 projects that have reached financial close."We have strong relationships at individual school, local government and central government levels. With our strong position in the Academy market, we remain confident that RM is well-placed to adapt to changes in capital spending programmes," said the group.It added that it will analyse the impact of the review and update the market as appropriate.