RM cuts cost base to mirror leaner IT education landscape

RM has taken further action to slash its cost base to reflect "subdued" demand in the education sector as the government continues to tighten its belt. The specialist has already taken the knife to its workforce following the collapse of the Building Schools for the Future (BSF) programme

RM has taken further action to slash its cost base to reflect "subdued" demand in the education sector as the government continues to tighten its belt.

The specialist has already taken the knife to its workforce following the collapse of the Building Schools for the Future (BSF) programme last year but in a trading update for the first half year ended March pointed to further cuts.

"Market conditions continue to be subdued as customers respond to changes in policy and funding. Consequently we are aligning our cost base to reflect the new conditions and to protect group profitability," said RM CEO Terry Sweeney.

The action has already been taken in the lines of business most impacted by the government budget cuts, and expected this to lower operating expenses by £5m a year at a cost of circa £1.7m.

RM has continued to win BSF projects but invariably they have been at a fraction of their initial size.

The firm was unable to comment in greater detail on the exact areas where the cuts will fall.

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