The Swedish firm that ran England鈥檚 first and only 鈥渇or-profit” free school has abandoned the UK market altogether after sinking almost 拢1 million into the failed project. opened in Suffolk in 2012 as a result of a free school bid by a group of parents. They chose Internationella Engelska Skolan to run the school on their behalf. The firm is the largest of those that run state-funded, independently managed schools in Sweden 鈥 a model said to have formed the blueprint for England鈥檚 free school reforms. But the company admitted its foray into the English market was over. IES Breckland was quietly moved to new sponsor the Unity Schools Partnership this summer. Dr Mary Bousted, joint general-secretary of the National Education Union, said: “The education system has been starved of funds so there isn鈥檛 any profit to make. “It always amazed me that capitalists thought they could come in and make a profit from a sector that was so underfunded and quite highly regulated.” The company established IES International English Schools UK Limited to trade in this country and act as the education provider for the 550-pupil school. The private company, which unlike a school or trust was allowed to turn a profit, received management fees from the SABRES Educational Trust, the school鈥檚 sponsor, of up to 拢124,000 a year. But the for-profit firm has been wound up now. Although the school was handed over with healthy finances, IES UK had racked up a deficit of 拢435,000 by summer 2020. Free school returned half of management fees Accounts show SABRES paid over 拢920,000 in management fees to IES UK between 2012 and 2021. But half of this figure was returned to the trust over the years 鈥渢o enhance the education on offer鈥. SABRES鈥檚 latest accounts, for the year to August 2021, show IES also paid it 拢130,000 in compensation for 鈥渆arly contract termination鈥. IES said this related to 鈥渓egal and re-branding fees鈥. The for-profit firm made repeated losses between 2012 and 2019, only posting a profit in 2014 and 2015 after bailouts of 拢307,369 and 拢76,725 from its parent company in Sweden. In 2020, the last year for which accounts are available, it made a profit of 拢23,642. A spokesperson for IES Sweden said: 鈥淎s a result of a strategic review the UK was no longer seen as a strategic market for IES. Therefore, as per the terms of our contract, IES worked alongside SABRES Educational Trust to find a new education provider.鈥 Unity was chosen after a 鈥渞igorous process鈥, and IES said it was 鈥減leased that we were able to leave the school, Ofsted-rated 鈥榞ood鈥 and on a strong financial footing, ready for the next stage in its development鈥. Including the bailouts, IES鈥檚 budget deficit of 拢435,000 and the compensation payment, it means the parent company has sunk almost 拢1 million that it will never recover into the project. Venture ‘not about profit’ says Swedish company But IES鈥檚 spokesperson said its venture in the UK 鈥渨as about providing the opportunity for a local community in Suffolk to access quality education whilst engaging in cultural exchanges with the International network of schools in Sweden鈥. Tim Coulson 鈥淎s it was IES鈥檚 first project on the UK market, the strategic priority was to get to know the market and not to make a profit.鈥 Breckland School was rated 鈥榠nadequate鈥 in its first inspection in 2014, with inspectors warning 鈥渢oo many students fail to make sufficient progress鈥. The school recovered to 鈥榬equires improvement鈥 in 2015 and then climbed to 鈥榞ood鈥 in 2017. The school has also grown in size, from 308 pupils in 2014 to 481 in 2017 and 549 last year. Tim Coulson, chief executive of the Unity Schools Partnership and a former regional schools commissioner, said the school joined the trust in July. 鈥淚t is a flourishing school with which we are delighted to be associated,鈥 he said.