Promethean in the red as revenues slide
PROMETHEAN World, the interactive education products supplier, made a loss of more than £160m last year as spending in key markets was slashed.
The Blackburn-based group which trades internationally has had a torrid time since floating four years ago. Revenue in 2012 slumped 29% from £222.9m to £157m, while ebitda fell from £31.1m to £5.1m.
After exceptional items of £158.4m – of which £140m was a non-cash goodwill impairment – the group declared a bottom-line loss of £165.4m, compared with a £16m profit in the previous year. As a consequence it axed its full-year dividend.
Chief executive Jim Marshall, said: “Market conditions, particularly in the US and Europe, were tough throughout 2012 and continue to be so, with education budgets remaining under pressure and increased competition for interactive hardware technology.
“This is reflected in our results for the year. Against this backdrop, we maintained strong cash management and took rapid action to implement a cost reduction programme and streamline our operations. This programme was delivered within time and beyond expectations.”
Mr Marshall said the group’s cost cutting drive had allowed it to reduce operating costs by 18.5% in the full year.
“In making these cost reductions, we have protected our core R&D investment in order to maintain our strong record of innovation. It will take time for the impact of our software initiatives to be felt and 2013 will be a year of transition in this respect.”
He said market conditions would remain tough throughout this year, adding: “We will therefore continue managing our business prudently to protect our profitability and cash flows.”
