RM chief exec Sweeney steps down
Company restructures, plans to axe one in five jobs
RM chief Terry Sweeney is stepping down amid a company-wide restructure after 13 years of service at the education supplier.
The LSE-listed firm is flogging parts of the operation, with the trade and assets of US arm Computrac – a classroom products biz – to be offloaded to Troxell Communications for £3m.
The remaining software unit stateside will be "re-sized".
Computrac contributed around £1m in profits before tax to RM's bottom line in the year to 30 September but is expected to be loss-making in fiscal 2012.
Hit hard by declining education budgets and the collapsed BSF project, RM is also looking at selling other units deemed non-core and is proposing to axe one in five jobs across the organisation in a bid to cut costs by £20m a year.
Sweeney replaced previous boss Tim Pearson, who left the group in July 2008 when things were ticking along very nicely due to the previous government's continued investment in ICT for education.
"Subsequent to the review Terry Sweeney has decided that now is the right time to pursue his career outside RM. By mutual agreement, Mr Sweeney has resigned as Chief Executive Officer and a director of RM with immediate effect," said RM.
RM confirmed that board member Robin Sirs, who last month decided to leave the firm, will "now remain" as group MD reporting to exec chairman Martyn Ratcliffe, who led the strategic and operational review and was non-exec chairman.
"Sirs has been reappointed to the Board. Mr Sirs joined RM in 1990 and has extensive experience of the Group's operations," said RM. ®