3E's was brought in to set up Bexley Business Academy

Gems - or Global Education Management Systems - has taken over a group set up to turn around failing state schools.

It recently took over a chain of independent schools, offering what it calls a cheaper, "no-frills" approach to private education at its 13 schools in England.

The company, set up by a Dubai millionaire, has 50 schools worldwide.

It is taking over a non-profit company called 3E's which was the first private firm to be awarded a contract to open and manage a state school.

3E's was brought in to set up Bexley Business Academy in Kent and has a 10-year contract from Surrey Council to run two schools in the county.

It was originally set up as a subsidiary of the successful and oversubscribed Kingshurst City Technology College, Solihull.

A new profit-making company, 3E-Gems Ltd, has been set up to take over 3E's' existing work and bid for other contracts in the state sector.