(Reuters) - RM Plc said on Tuesday its chief executive resigned after the educational services provider carried out an operational review amid declining education budgets in the United Kingdom.
The company said CEO Terry Sweeney resigned with immediate effect and plans to pursue other opportunities.
RM, which was reviewing its operations in the tough economic climate, had last month said it would restructure its board and dispose off its loss-making businesses.
Earlier this week, the company reached an agreement to dispose its trade and assets relating to the former Computrac business in the Unites States to Troxell Communications Inc.
On September 29, RM forecast that the restructuring would reduce headcount by about 23 percent and cut annual cost in excess of 20 million pounds.
Recent reductions in UK public sector expenditure and the termination of the Building Schools for the Future (BSF) programme have taken a toll on the company’s performance.
RM, which derives more than two-thirds of its revenue from the learning technologies division, expects a 40 percent reduction in IT spend by both primary and secondary schools because of public sector cutbacks.
RM shares, which have shed 42 percent of their value since the company forecast full-year operating results below analyst estimates in September, opened up more than 3 percent at 44.50 pence on Tuesday on the London Stock Exchange. (Reporting by Juhi Arora in Bangalore; Editing by Joyjeet Das)