Despite such firms being awarded projects with high capital values they carry high debts in terms of working capital as most projects can run for several years before they are paid and even then their margins aren't that big anymore (between 5-10%).
Company Comparison - Google Finance should not focus on their profits - as this is simply a reflection of how well they did this year. And considering this is a recession year, and they made a profit, I'd be happy if I were them.
Also remember, they are being fined for doing illegal things. So it doesn't matter if it damages their profits - they shouldn't have done it. No-one should feel sorry for companies that screwed tax payers out of millions of pounds. They wouldn't have been making such profits if they had been operating legitimately in the first place.
You can't value a business in terms of shares as that's only the market value at any point in time and regardless the company does not own the shares so cannot use them to generate capital to pay such fines - all they can do is reduce or stop any annual dividend to shareholders. The only available money once all other liabilities have been met is the profit - or of course extending company debt.
I'm not defending them - just saying that companies such as this may fold due to such high fines and in the long run this does not benefit anyone least of all their employees.
Any one heard who is taking the thurrock area? i work in South Ockendon at the Ockendon School
Would like to know who is doing this area, or has it not be decided yet?
What I don't also get, is whether or not - as it seems RM or anyone has has little or no involvement in our school - is whether BSF will ever actually affect me?
Can schools choose? That is, do they have an option to say, actually, we like the way our ICT is being run and we want to keep it that way, or not? I guess I don't really understand what BSF is.
As I say, our school seems to be so very ICT independent apart from SEGFL, I'm just wondering when, if, or how, BSF will affect me?
Sorry to be such a numpty, but it's not something that has been spoken about at all here, so I do feel a bit in the dark.
THe BSF provider receives rent for 25-30 years, depending on the deal struck with the LEA, at the end of which time the school then reverts back to the LEA, and that's one of the ways companies make money from this process. The MSP receives a sum of money from each school's budget of £x per pupil per year (this amount varies from LEA to LEA and depends on the deals each individual LEA has struck with their provider) to provide IT support.
Each contract lasts for 5 years, at the end of which period the LEA can go for another provider if they are not satisfied with the service provided by the current provider. I was told by our LEA BSF negotiator that we wouldn't be taken back by the schools but would remain in stasis and TUPE over to the new provider, which begs several big questions.
Teachers and classroom assistants, admin staff and the like are not going to be TUPEd over, this is mainly about IT staff.
BSF is a huge subject and I suggest you search the BSF forums here. HTH
I'm just very surprised that as I am in quite a large LEA (East Sussex) that nothing has happened, been spoken of or even indicated as going to happen.
I will certainly research the matter some more, and to be honest, so long as I still have a job, it matters not if I'm 'tuped' or otherwise, but the simple lack of information for my area is not particularly helpful.
And LEAs don't get to say no I don't think? I think it is an obligatory thing for them.
I know of at least one LA who bid for there own IT services (Newcastle) in partnership I think with dell or maybe it was northgate. I have been to some of the schools in the Newcastle authority and the IT staff are over the moon with the new setup. North Tyneside however seem already decided it has to be outsourced to an external company.But does, or rather is, an LEA obligated to farm out business this way?
I think Newcastle were lucky, as a wave 1 BSF Pathfinder LA they got through the process before Partnership for Schools had finished writing the rules......
As I understand it now, any LA can submit a bid to Partnership for Schools for BSF funding regardless of which wave they were in; if successful they will be awarded funds to rebuild/renovate schools, Partnership for Schools expect LAs to outsource their school ICT as part of their bid; in theory individual schools can opt out either by preparing a business case for funding to manage their ICT themselves (not as easy as it sounds) or by declining the BSF ICT funding, typically worth >£1450 per student. Few have gone down either route.....
Most ICT outsourcing has gone to the private sector, I believe a very small number of LAs have managed to follow Newcastle & come up with some form of joint LA/Private sector managed service solution but this seems to be generally frowned upon by Partnership for Schools.
If you dig deep enough into the BSF forum threads you will find discussions covering the hurdles schools have to jump over to get funding directly; basically Partnership for Schools do not want school ICT to remain under the direct control of schools .....
Just to add to the fun, many LAs are now discovering that the Govt is applying pressure on them to create academies as part of their BSF funding process.... those that don't agree to academies sometimes find it difficult to get BSF funding... if you understand what I mean
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