A branch of the private sector company, CEA@Islington, was handed a seven-year contract to run the borough's schools last year in the first big government experimentation with privatisation.
Under the deal, CEA is paid a maximum annual fee of£600,000, subject to meeting a series of performance targets which include, for the first time this year, GCSE and key stage two results. That figure is capped, which means CEA cannot earn in excess of this, but it can lose up to half in the form of financial penalties.
CEA missed its target of 35% of pupils getting five or more good GCSEs by 7%.
But, he added: 'We are still satisfied that we are moving in the right direction.'