Case Study 3: Firm's shares slump over £200m blow

THE DECISION to axe the Building Schools for the Future programme sent shares in educational supplier RM Group plunging yesterday after it revealed £200m of projects were now at risk.

By The Newsroom

Published 7th Jul 2010, 00:53 BST

Updated 7th Jul 2010, 00:55 BST

The firm said it had been named as preferred bidder for seven BSF projects, which will be subject to review and "may be scaled back significantly".

Shares in RM dropped 13 per cent at one stage as traders responded to the Government's decision to cut the major capital spending programme.

The Oxfordshire company provides IT and software services, such as interactive whiteboards and classroom technology. RM confirmed 14 of its BSF projects had reached "financial close" and would still be getting Government funding.

Government Oxfordshire