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Education market thriving

THE market for companies involved in education continues to be buoyant, latest figures from the analysts Capital Strategies reveal.

An index of the share prices of 25 education and training firms quoted on the Stock Exchange has sustained its upward trend, rising by 11.7 per cent in the past six months.

The same index has more than trebled in value in the past four years. Share growth among the companies has been consistently above gains made by the FTSE's 100 top businesses.

The figures were revealed in the latest edition of The Business of Education by Capital Strategies, the corporate finance house which specialises in education and training.

The report reiterates the firm's pediction that the value of the education market could double to pound;5 billion in the next five years.

It highlights recent developments in the sector including firms winning contracts to run services in the London authorities of Waltham Forest and Southwark and the emergence of new players in the market, including engineering giant WS Atkins, which won the contract for school improvement in Southwark.

Schools and councils will increasingly turn to the private sector to carry out financial management and administrative functions, while private involvement in sections of local authority work will keep growing, the report adds.

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