Promethean World shareholders that continue to stick with the provider of interactive learning technology deserve a medal. It was all going so well just after the company floated on AIM in March 2010. Indeed, the share price peaked – at 208p – in June 2010 shortly after the company announced a strong set of maiden interim results. But it wasn’t long before things went from bad to worse (see Promethean battles on in tough education markets and work back). And today the share price stands at just 18.25p.
Its interim management statement (for Q1 to 31st March 2013) reveals another steep revenue decline. Total revenues were down 24.2% (constant currency) to £35.9m. Promethean tries to put a shine on the results by pointing out revenues rose by 1.7% if a large Russian contract is excluded from the equation in the comparative quarter. But regardless, Group revenues are still well off the comparative quarter revenues three years ago – of £53.9m - that coincided with the peak in its share price (34% off to be precise).
The problem is that the education sector is stretched. If it’s a choice between a new classroom and a new teacher to cope with an increased influx of pupils or a new interactive whiteboard? There’s just no contest. And when it comes to new mobile technologies, Promethean reports revenues from tablets of just £2.1m (vs. £4.6m in Q112) (apparently that performance reflects the “increased popularity of tablets in the classroom”?). There will undoubtedly be an upturn in demand at some point. And Promethean continues to control costs and invest in new software development in readiness. In the meantime, shareholders will have to continue holding onto their hats.