ICT firm Redstone has disbanded the unit responsible for its Building Schools for the Future work, and sold its contract in Birmingham for less than 3% of its value.
The company had harboured ambitions of taking a 10% share in the BSF market. And in February last year it won a 15-year deal to deliver computer services to Birmingham schools. The contract was thought to be worth £150 million.
But the programme was cancelled last July. And Redstone has struggled through the recession, with revenues dropping by 20% in the year to March.
Now the company has sold the Birmingham contract to lead contractor Bovis Lend Lease for just £4.2 million.
Following this decision Redstone confirmed that its I4E division, which had been set up to manage the contract in Birmingham and seek further BSF work, would now be disbanded.
Tony Weaver, Redstone’s chief executive, said: “We are pleased to have completed the first part of our strategy of refocusing Redstone’s operating activities within the sphere of its core competencies.”