Losses leap in tough year for Promethean World
EDUCATION technology provider Promethean World has reported a slump in annual earnings and revenues.
The Lancashire company said progress in its key market of North America has been more than offset by a sharp reversal of fortunes in other international markets, particularly Europe.
In the year to the December 2014 revenues fell 16.3% to £118.2m (down 12.1%) on a local currency basis. Reflecting this and a fall in gross margins adjusted EBITDA was £0.8m in 2014, compared with £9.4m a year ago.
At the bottom line losses came in at £7.9m, up £2m on the previous year.
While there was an increase in North America revenues of 1.2% on a local currency basis to $108.9m, boosted by a key contract win in Miami in February 2014, international revenues dived 27.5% to £52.3m, as a result of weak demand on Continental Europe and Asia Pacific and “slippage” of certain orders in the Middle East.
The company said the worst affected European markets were Germany, France, Russia and Scandinavia, and were largeley due to delayed purchasing decisions and deferral of projects due to budgetary constraints.
In addition, political uncertainty affected the timing of tender opportunities in Asia, resulting in a “significant impact” on sales volumes there.
Chief executive Jim Marshall said: “In 2014, we performed well in North America but this was more than offset by significant volatility and weakness in some of our international markets, slippage of certain contracts into this year and the foreign exchange impact.
“This is the first year of growth in North America since 2010. We anticipate further improvement in US education budgets for the school year commencing 1 July 2015.”
He said further progress in North America is expected this year, and important too that there are “signs of increased stability and confidence in the majority of our markets” notwithstanding the possible macroeconomic effects from changes in outlook for Russia and the euro zone.
He added: “We anticipate that the financial outlook for 2015 will be in line with existing market expectations and are confident about the company’s product range and competitive position.
“During the first half of 2015, the business will utilise both its operating cash flows and bank facility to fund continued investment in new product development and working capital.”
