Promethean World Plc, a world leader in the global market for interactive learning technology, publishes its interim management statement for the three month period ended 31 March 2013.
The first quarter results are in line with the group’s expectations. First quarter group revenues were £27.8m (£35.9m in Q1 2012), 22.5% lower than at the same period the previous year. However, the comparative period included 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 (£31.3m in 2012), a reduction of 17.7% compared the first quarter in 2012. In volume terms, Promethean sold approximately 22,000 interactive display systems (29,000 in Q1 2012), a 23.9% reduction, or a 9.3% increase excluding the Russian tender in Q1 2012. Learner response system handset revenues reflect the increasing popularity of tablets in classrooms and were £2.1m (£4.6m in 2012 Q1).
Promethean had net cash value of £10.8m as at 31 March 2013 (£8.0m as at 31 December 2012).
The company are making good progress on their software strategy, outlined in the 2012 Full Year results announcement, building outwards on the strength they hold in the classroom, with product launches scheduled throughout this year. Later this quarter, revenues from the licensing of ActivInspire software to interactive projector providers, BOXLIGHT and Epson, will commence and Promethean's new ActivBoard Touch range will also be launched.
Promethean Planet continued to grow rapidly and, as at 31 March 2013 had over 1.6 million members an increase of 24.4% compared to 31 March 2012 and an increase of 76,000 members since 31 December 2012.
The group expects that market conditions will continue to be challenging throughout 2013. As previously stated, the first financial impacts of the group’s software strategy will not be felt until during 2014. Promethean are benefiting from the actions taken to reduce their operating cost base, designed to ensure the group can be EBITDA profitable and cash positive in the current market environment. Their potential performance for the year, with key buying season being from June to September, will be more obvious come the second half of the year.
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