8th Apr 2005 09:01
RM PLC08 April 2005 8th April 2005 RM subsidiary peakschoolhaus unsuccessful in Ofsted regional inspection services competition RM plc, the UK's leading supplier of ICT and other services to education,announces that its peakschoolhaus subsidiary has not been selected by Ofsted asa preferred partner for regional inspection services. Whilst this does notimpact management's expectations for profit (before amortisation and impairmentof goodwill) for the Group in the current financial year, it is likely to resultin an impairment of the goodwill arising as a result of the acquisition ofpeakschoolhaus. Tim Pearson, CEO, commented: "We've won seven major education contracts since February 2003 and clearly wewould have preferred that peakschoolhaus had been successful in this bid.However, we evaluate all large contract opportunities in great detail and willonly bid for contracts on terms that are in the interests of shareholders." "When we acquired peakschoolhaus in 2003, we anticipated a reduction in thenumber of contractors involved in school inspections. Subsequently, the schoolinspection regime has changed much more significantly than expected, with Ofstedconsiderably reducing both the total number of days of inspection required andthe number of inspection contracts. Without one of these contracts,opportunities in the school inspection market are limited. We will be reviewingoptions for peakschoolhaus, but it is likely that the value of thepeakschoolhaus business will be significantly reduced." - Ends - For further information, please contact:Mike Greig, RM plc 08709 200200Fiona Laffan/Mark Antelme, Brunswick 020 7404 5959 Notes to editors: peakschoolhaus was acquired on the 1st October 2003. Goodwill arising was £1.6million, which was being amortised over five years. At the 30th September 2004,the net book value of goodwill was £1.3 million. At the time of acquisition, RM disclosed that peakschoolhaus was expected togenerate nearly £3.5 million of revenues from its Ofsted inspection servicescontract in the school year starting 1st September 2003. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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