It’s been a long time since we’ve heard anything like “we expect to deliver results above market expectations” from interactive learning technology provider, Promethean World. But that is its prediction for its FY13 just completed. As we have highlighted previously, Promethean’s revenues continue to decline (down 10% in 2013 to £141m); but the pace slowed over the year, leading the company to describe 2013 as a “year of stabilisation”. Also positive is the fact that Promethean now has its costs under control, and, therefore, expects to deliver an adjusted EBITDA of £9m, up from £5.1m in 2012. Its net cash position at year end (£17.6m) is also twice that at the start of the year.
Promethean also describes 2013 as a year of “considerable innovation” for the company. However, no amount of investment in software will boost revenues if the market simply isn’t ready to invest. As we have said before, when budgets are tight in the classroom, if it’s a choice between paying a teaching assistant and buying new technology for the classroom, paying people will always come first. Like Promethean we do think that schools will have to start spending more on technology again; if they don’t bring classrooms up-to-date, this school generation will undoubtedly suffer. But it isn’t happening yet. All Promethean can do is make sure its offerings are the most relevant and the most competitive when the time comes.