A MAJOR supplier of whiteboards and technology for school classrooms has warned of uncertainty over its prospects as spending cuts bite.

Shares in Oxfordshire-based RM closed down 15% or 27p at 117p after the firm said results for the year to September were likely to be lower than expected.

RM blamed tough market conditions in the UK and the USA.

The firm said it would be difficult to predict its trading performance with any certainty until after the summer, the period when it generates most of its profit.

The warning comes a year after RM was hit by Government moves to axe unfinished Building Schools for the Future projects, including seven for which RM was preferred bidder on contracts worth £200m.