Educational software company RM is defying the recession after reporting a sharp rise in revenues The firm, which employs 1,000 people at its Abingdon headquarters and another 1,500 worldwide, has seen its turnover grow by 21 per cent to £141.9m for the six months to March 31. Pre-tax profits remain the same at £0.2m.

Chief executive Terry Sweeney said: “The group has a strong balance sheet and is financially conservative, with prudent management of costs and cash.

“With a strong and growing range of educationally-valuable products, we see opportunities ahead for all of our businesses.”

He added that Government spending on education was up six per cent this year and scheduled to go up another 1.3 per cent next year — which spelled good news for the firm.

And he is not overly worried by fears that the Government will be forced to reel in its spending on key public sector areas such as education.

Mr Sweeney, who has been chief executive at RM for just under a year, said: “I believe there will be a medium term squeeze.

“But we are diversifying, becoming more international and feel we have a plan to put us in a good position in future.”

He explained that many of RM’s products were designed to save education authorities money, for example a revolutionary new electronic marking system for schools.

• Sir Tim Brighouse, former Oxfordshire chief education officer and a non-executive director at RM, will open the company’s REAL (Rethinking Education And Learning) Centre on Thursday <<may 14>>, showcasing emerging technology the company claims is changing the face of the classroom and radically improving the way children learn.