Although “in line with expectations”, trading in the first three months of 2011 for Promethean World, the supplier of interactive learning technologies, was nothing to smile about. According to its interim management statement, Group revenues were down 22% to £53.9 million (20% down on a constant currency basis).
Despite the oft used ‘things wouldn’t have been so bad if we hadn’t had such a significant contract impacting Q1 last year’ explanation, it’s quite clear that the Promethean’s traditional business is suffering as a result of public sector budgetary constraints. Interactive display system revenues were down 20% to £36.6 million and learner response system revenues were down 35% to £5.3 million.
As we commented in March (see Public sector budget squeeze hits Promethean), the Group is looking to expand other areas of its business, such as software and training. There’s no indication of how that is going. But it will undoubtedly take considerable time for its efforts to translate into the sort of growth capable of compensating for such heavy declines in its core business. In the meantime, following the “resizing” of its cost base in Q4, the management team continues to plan for a challenging 2011.