Share tip of the week: a Grade-A play on education spending

The government is spending £4.5bn on information, computing and technology in a 15-year upgrade plan to schools. One firm set to benefit is this week's share tip, says Paul Hill.

In 2004 the British government launched a 15-year plan to upgrade 3,500 schools, with £4.5bn earmarked for information, computing and technology (ICT). That's equivalent to £1,675 per pupil.

Despite delays in rolling-out the programme, one firm set to benefit is RM Group. It has around a 30% share of Britain's ICT education market (worth £1.1bn). It's also won an estimated 34% of all the Building Schools for the Future (BSF) contracts tendered more than twice the number won by its closest competitor, Ramesys.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.