RM PLC
29 September 2000
RM plc - Update on Classroom 2000 Project and Current Trading
RM, the leading supplier of ICT to UK education, announces that negotiations
in relation to the Classroom 2000 PFI project in Northern Ireland are subject
to delay and will not now be completed prior to the end of RM's current
financial year on 30 September 2000.
RM announced at its Interim Results that it expected that Trilith - the joint
venture company formed with ICL to bid for the Classroom 2000 project - would
be appointed preferred bidder this financial year, subject to agreeing
suitable commercial terms. Pending this, RM made a provision of £2.1m against
costs incurred in anticipation of the contract award. In the second half of
the financial year a further £3.4m of costs have been incurred. Subject to
progress in the negotiations over the next few weeks, RM now expects to make a
provision against the costs of £5.5 million incurred in its full year accounts
for the year to 30 September 2000.
Classroom 2000 is a £300m, ten-year project to provide ICT to all 1,227
schools in Northern Ireland. Designated a significant project under the
government's Private Finance Initiative (PFI), it combines ICT and education.
Procurement commenced in November 1998, and in February 1999 RM and ICL were
separately pre-qualified. In March 1999 RM and ICL came together to form the
joint venture company Trilith. Trilith was established as the sole bidder for
this project in June 1999.
RM plc also announces that trading in the financial year to date, excluding
the one-off impact of the potential provision, is in line with market
expectations. RM's core business of providing ICT services to schools in the
UK continues to offer very significant opportunities. Further National Grid
for Learning funding of £710 million, across the two years 2002/2003 and
2003/2004, was announced by the government this week.
Commenting, Richard Girling, Chief Executive of RM, said:
'It is disappointing to report that, after investing so much time and effort,
we have been unable to reach agreement within the timeframe anticipated. We
have, however, made significant progress with Classroom 2000 in the second
half, and remain hopeful of reaching agreement on satisfactory commercial
terms.'
'Classroom 2000 would provide considerable educational benefits to pupils and
teachers in Northern Ireland. It would also be a world-leading showcase of
the use of ICT in education.'
Notes to Editors
RM has pioneered the delivery of managed services in the education sector and
has managed service relationships with approximately 300 establishments
representing over 16,000 desktops. The Group's managed service activities
range from single primary schools through to, in the case of Dudley
Metropolitan Borough, providing a service for all of the schools in a local
education authority. RM is accredited to supply managed services under the
Department for Education and Employment's NGfL Managed Services initiative.
The Dudley Metropolitan Borough Council project - the Dudley Grid for Learning
- is a pathfinder PFI project worth £48 million. Other Customers for RM's
managed services include Holland Park School (day-to-day management of a large
and complex network), Tynemouth College (complete outsourcing of the college's
ICT facilities) and Rotherham LEA (provision of a managed, 100 Mbit/s learning
network).
For further information contact:
Mike Greig/Phil Hemmings RM plc 01235 826000
Andrew Fenwick/Deborah Done Brunswick 0207 404 5959
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