RM Says GBP200 Mln Of UK BSF Schools' Projects Could Be Axed

6th Jul 2010 07:23

LONDON (Dow Jones)--RM PLC (RM.LN), a U.K. provider of educational products and services, Tuesday said GBP200 million of future revenue is under threat from the U.K. government's decision to slash spending in schools, as seven Building Schools for the Future (BSF) projects where has been named preferred bidder could be axed. RM said it has reached financial close on 14 BSF projects, which will bring in revenue in the 2010 and 2011 fiscal years. It had previously announced it was granted preferred bidder status for another seven projects. But following the U.K. government's announcement Monday that the BSF program is to undergo a major review, with many projects being scrapped, RM said the GBP200 million of projects it had been appointed preferred bidder for will be subject to review and "may be scaled back significantly." Of this potential revenue, GBP121 million was included in RM's committed revenue figure of GBP505 million when it announced interim results in May. The company said it will continue to analyze the impact of the government's review and will update the market in due course. -By Hannah Benjamin, Dow Jones Newswires; 44-20-7842-9298; [email protected] (END) Dow Jones Newswires July 06, 2010 02:23 ET (06:23 GMT)