The academy occupies a stunning new building

An Ofsted team found that The Business Academy Bexley in south London, had "transformed" learning for its pupils and had made "remarkable progress".

But it still faced "considerable challenges" and overall teaching and learning was "unsatisfactory".

The academy said it was considering legal action against Ofsted.

'Good leadership'

Ofsted's report has not been published, amid a wrangle over the status of the inspection.

The status determines the language that can be used - with "serious weaknesses" being possible only as a result of a particular sort of inspection.

In view of the dispute, Ofsted said it had agreed not to use that term, substituting "significant weaknesses".

But it says "it was made clear to the academy that the substance of the judgement had not changed".

It has released the summary of the findings of the inspection in June.

In that, Ofsted's inspectors also said the leadership of the principal was very good and he was well supported by other members of the senior leadership team.

'Preposterous'

The academy has made a complaint to Ofsted about the inspection. Ofsted said it was still considering that - with a response due "shortly".

In the meantime, it was surprised that the academy had told a newspaper about its concerns.

In Wednesday's Daily Telegraph, the chair of governors and sponsor of the academy, Sir David Garrard, said he was considering legal action "on behalf of all schools and teachers against the irrational, inconsistent and preposterous posturing of Ofsted".

Exam results at the academy have revived from those at Thamesmead Community College, the failing secondary modern school it was built to replace.

Last year at the new academy 21% achieved the better GCSE grades and this year, 35%.

The academy's architecture - by Foster and Partners - has been shortlisted for the prestigious Stirling Prize.