Promethean World curbs losses after cuts
CLASSROOM technology supplier Promethean World saw the benefit of its cost cutting programme as it reported much-improved half-year figures.
Although revenues were down 15.8% to £70m in the six months to the end of June, the group more than halved its operating losses from £5.7m to £2.6m and reported a profit at EBITDA level.
The group, which generates more than half of all revenues in North America, and which has its headquarters in Blackburn, said its operational cosst base had been reduced by 31.5% to £22m since last year. It has also agreed a new £25m funding facility with Burdale Financial, maturing September 2017.
Chief executive Jim Marshall said the group had made progress, but was not expecting a dramatic upturn in trading in the second half of the year.
“Market conditions remain challenging, reflecting the continued constraints on education budgets, but we have made progress both financially and in progressively executing our strategy.
“Our results are in line with market expectations, with a noticeably lower rate of revenue decline than in 2012, and our reduced cost base has helped us achieve positive EBITDA, an improved operating margin and net cash of £9.1 million. We have also refinanced our bank facility.”
He said the group’s plan is to introduce software solutions to help teachers use technology better, and thus improve how they work, benefiting their pupils.
“Our strategy is to leverage our great strength in the classroom to connect the disparate devices now in daily use, with software to create an interactive learning environment.
“One where classroom data is easily shared at an enterprise level so that at every level, from the classroom to the school and beyond, educators can see how students are progressing. With this information available real-time, they are better equipped to personalise lessons and understand what is working and what is not.”
The company is not paying a dividend. Having declared substantial one-off exceptional items a year ago, Promethean’s loss before tax was £5.3m this year, compared with £148.3m in 2012.
