8 May 2014
Promethean World Plc
('Promethean' or 'the Group')
Interim Management Statement
Full year outlook maintained
Promethean World Plc (LSE: PRW), a world leader in the global market for interactive learning technology, publishes its interim management statement for the three month period ended 31 March 2014.
Group revenues were £20.7m, 25.4% lower than the £27.8m revenues in the first quarter last year, or 21.0% lower on a constant currency basis.
Sales volumes of interactive display systems were 8.7% lower than the prior period. The currency translation impact of a weaker US dollar has also adversely affected reported revenues and in addition, both lesson content revenues and sales of other equipment, including LRS handsets, were lower than in the comparator period last year. (In Q1 2013, lesson content revenues benefitted from royalties arising from the initial adoption of Houghton Mifflin Harcourt (HMH) interactive curriculum content resources. 2014 HMH royalty revenues will be recognised in Q3 this year.)
Approximately one third of Promethean's Miami-Dade contract revenue has been recognised in the first quarter, with the balance of shipments on this contract to be completed by the end of the third quarter.
In the International region, where the timing of contracts can be uncertain, there is a pipeline of significant tender opportunities, a number of which are expected to ship later in the year.
Promethean's order book at the start of Q2 2014 is substantially ahead of the equivalent position as at 31 March 2013. Even excluding the benefit of the balance of the Miami-Dade contract, the North American order book is significantly ahead of this time last year.
Promethean had net cash of £12.0m as at 31 March 2014 versus £10.8m as at 31 March 2013.
We continue to make good progress on the development and delivery of our software and hardware. Our widened range of hardware meets the needs for whole class, small group and individualised learning. ClassFlowTM, a Beta version of which was launched in January this year, connects and manages the flow of data between the multiple devices in in the classroom, eases lesson preparation and helps increase the impact of lesson delivery. Further enhancements to ClassFlowTM and its progressive roll-out are planned for each quarter this year.
Whilst market conditions remain challenging, we are seeing signs of increasing confidence from customers. Given the strength of our North American order book and our International region pipeline, our expectations for the first half and full year remain unchanged.
We will also be closely monitoring the market response to the launch of our new software and professional services. These products are proving to be an important differentiator for Promethean, although we do not expect them to generate material revenue this year.
Promethean expects to release its interim results for the six months ended 30 June 2014 on 31 July 2014.
Promethean + 44 (0) 1254 290749
Jim Marshall, Chief Executive Officer
Ian Baxter, Chief Financial Officer
Citigate Dewe Rogerson Consultancy + 44 (0) 20 7638 9571
Anthony Carlisle + 44 (0) 7973 611 888
Promethean (LSE: PRW) is a global education company that improves learning productivity by developing, integrating and implementing innovative 21st century learning environments that make everyone more engaged, empowered and successful. Headquartered in the UK, with a US office in Atlanta, Georgia, Promethean World Plc is listed on the main market of the London Stock Exchange. More information about Promethean is available at: www.PrometheanWorld.com.