RM caned on second profits alert

SCHOOL computers group RM has blotted its copybook again as its second profits warning in six months sparked a 59% slide in its shares. Jobs among RM's 1,500 staff and 200 contractors are at risk after the group said orders had nosedived in December and January.

RM shares fell 132 1/2p to 92 1/2p, their lowest for more than four years, leaving the group once valued at £1bn worth just over £87m.

Only 10 days ago the group denied the departure of chief executive Richard Girling was related to a downturn in the business. Tim Pearson took over the job two months ahead of schedule today.

Increased spending on schools has not brought new orders for RM, which has also been hit by software delays and falling margins. Profits for the year to 30 September are likely to be less than half last year's £15m, with sales down about 15% from £242m. Revamp plans are due with interim results in May.