SCHOOL technology provider RM Education has slipped into the red, latest figures have revealed.

The company, which employs 1,200 people based at Milton Park, near Didcot, made a pre-tax loss of £1.4m for the six months to March 31, compared to a profit of £1.2m for the same period last year.

RM has been hit by the Government’s scrapping of the Building Schools for the Future programme, as it was contracted to supply new information technology equipment to schools and colleges across the UK.

Last year a “small number” of jobs were lost particularly in the technology area, but a company spokesman said employment numbers remained stable due to recruitment in other areas of the business.

She added: “We will have 25 graduates starting with the company over the next couple of months.”

The figures also revealed there had been a major contraction in its business in the United States where trading conditions continue to be “very challenging”.

Chief executive Terry Sweeney said: “We experienced challenging market conditions in our core markets in the first half, as customers continued to respond to changes in policy and funding in both the UK and the US.

“We have realigned our cost base through a restructuring programme to reflect the changed conditions and to protect group profitability.”