Promethean feels the pinch of austerity
INTERACTIVE whiteboard maker Promethean World expects austerity measures to subdue demand for its products.
The Blackburn-based company issued a profit warning in December after seeing sales slide in the second half and it now expects current market conditions to persist during 2011.
Today the group, reporting annual figures for the year to December 31, said, public sector budgetary uncertainties and constraints had “led to a rapid slowdown in demand”.
Nonetheless strong growth in the first half contributed to a 15% rise in sales to £235.3m and an 11% increase in pre-tax profits to £17.1m. Overall UK sales fell 20% from £26m to £20.9m.
Chief executive Jean-Yves Charlier said: “Our business performance in 2010 saw a sharp contrast between the first and the second halves. When we floated last March, growth was strong, and this was reflected in record half-year results. During the second half, however, government austerity measures resulted in public sector budgetary uncertainties and constraints and this led to a rapid slowdown in demand.
“The evidence from our extensive market research in North America is that this slowdown does not reflect any alteration to customers’ intention to adopt interactive learning technology in the long-term. It is primarily reduction of expenditure driven by uncertainty over funding and a desire to reduce budget deficits. In addition, the evidence is that we have improved our market share in 2010. There is no doubt in our minds that interactive learning technology over time will become ubiquitous.”
