PRW19 Apr 2011 09:13
Trading in line with expectations
Ahead of its Annual General Meeting to be held later today, Promethean, a world leader in the global market for interactive learning technology, publishes its interim management statement for the three month period ended 31 March 2011.
Trading Performance
Overall trading for the first quarter is in line with expectations.
First quarter group revenues were £41.9m, some 22% lower than the £53.9m revenues in the first quarter last year (20% lower on a constant currency basis). The 2010 comparator period was particularly strong and also included a significant tender to install 4,550 interactive display systems in Andalucia, Spain. Excluding revenues from the Andalucia contract, group revenues were 15% lower than the first quarter of 2010, or 13% lower on a constant currency basis.
By product segment, first quarter interactive display system revenues were £36.6m and learner response system revenues were £5.3m, a reduction of 20% and 35% respectively, compared to £45.8m and £8.1m respectively for the first quarter in 2010.
In volume terms, Promethean sold approximately 32,000 interactive display systems and 172,000 learner response system handsets in the first quarter of this year, compared to 41,000 and 268,000 respectively in the same period last year, lower by 21% and 36% respectively than the same period last year.
The resizing of the cost base aimed at protecting profitability, which Promethean announced in the fourth quarter of last year, was completed on track during the first quarter of this year.
The contract to supply 8,000 ActivBoard+2 interactive display systems to around 4,000 schools in Italy began shipping at the end of the first quarter, and Promethean anticipates that the majority of the revenue relating to this tender will be recognised in the second quarter of 2011.
Promethean continues to believe that the long-term demand drivers remain strong, but that market conditions will remain challenging at least through 2011, due to public sector budgetary uncertainties and constraints, and is planning its business on this basis.
Interim results
Promethean expects to release its interim results for the six months ended 30 June 2011 on 28 July 2011.