RM - the IT services to education specialist - yesterday posted an 11 per cent rise in pre-tax profits for the year to September 30.
The group, which has contracts with a number of local authorities in the West Midlands, said profits increased from £ 11 . 6 million to £12.8 million. Turnover was unchanged at £263 million.
RM, based in Abingdon, Oxfordshire, said trading in the current year had been mixed, although it has been named as the preferred bidder for a £6.4 million contract in Solihull under the Government's 15- year Building Schools for the Future initiative - the first to be announced.
Other West Midlands wins have seen 1,500 teachers using Tablet- PC based teacher toolkits in Warwickshire and 8,000 computers updated in over 100 schools on behalf of Dudley Grid for Learning.
Chief executive Tim Pearson told shareholders: "RM has delivered a strong performance in 2005 - particularly so against a background of tough market conditions.
"Underlying growth in the business has replaced the 'one-off' turnover which was a feature of last year and we have both increased profit before tax and goodwill charges and funded an additional £1.8 million investment in BSF business development."
He added: "However, the budget pressures evident in our individual schools market since the start of the new academic year have continued.
"We are increasing investment in the BSF programme - we believe this is in the longterm interests of shareholders, with returns expected to start in 2007. The educational ICT landscape is evolving more rapidly than it has for years: new and innovative uses for educational ICT are emerging and RM is leading the world in many of these areas."