Promethean still wary as Q1 sales fall
EDUCATION technology provider Promethean World, the Lancashire-based interactive learning specialist, says that while first quarter sales are down on last year, its cost cutting programme is starting to deliver required savings.
In a trading update for the three months to the end of March the Blackburn-based group which sells its products internationally said it expects 2013 to be “challenging”. More visibility over its prospects will be achieved after the key buying season from June to September.
Promethean said its first quarter sales were “in line with expectations”. Revenues were £27.8m, 22.5% lower than the £35.9m revenues generated in the first quarter last year, or 24.3% lower on a constant currency basis.
However, the first quarter of 2012 saw the group book “significant revenues” in relation to a Russian contract win. Excluding these Russian contract revenues, group revenues in Q1 2013 would have been approximately 1.7% higher than Q1 2012.
Operating costs for the first quarter benefitted from the actions taken in the second half of 2012 and were significantly lower than in Q1 2012.
Interactive display system revenues for the quarter were £25.7m, a reduction of 17.7% compared to £31.3m for the first quarter in 2012. In volume terms, Promethean sold approximately 22,000 interactive display systems versus 29,000 in Q1 2012, a 23.9% reduction, or a 9.3% increase excluding the Russian tender in Q1 2012.
The group said its net cash position had increased from £8m at the end of December to £10.8m as at March 31.
Looking ahead it said: “We maintain our outlook for this year, expecting that market conditions will continue to be challenging throughout 2013…
“We are benefitting from the actions taken to reduce our operating cost base, designed to ensure Promethean can be EBITDA profitable and cash positive in the current market environment.
“The key buying season from June to September, particularly in the US, will better inform our potential performance for the year. We will continue to manage our business prudently.”
