Promethean Share Discussion Threads

[gingerplant] 20/7/2012 16:57

Promethean World

This company was floated it at £2 a share in October 2010, but public spending cuts and increased competition have cut into the techie teacher's aids provider's profits. Each trading update is worse than the last, but there should still be over 10p per share in net cash.

Promethean now expects to post a "high single digit (£m) operating loss for the first half", with its interims on 26 July. The results should make interesting reading for the latest balance sheet figures and trading prospects. It could be ripe for some sort of corporate action and the founder still owns 33% of the shares, so is one to watch closely in my opinion

[masurenguy] 30/6/2012 15:35

More despair at Promethean

As it has so often done since the loveable Goldman Sachs floated it at £2 a share on the LSE in October 2010, making founder Tony Cann and other executives well in excess of £70m, Promethean disappointed and found itself at the bottom of the class. Shares of the Blackburn-based educational technology firm crashed to 18p on another profits warning before closing down 12.75p, or 37% at an all-time low of 22p.

The company warned that the expected high level of order activity in the US at the end of June has not materialised and first-half sales will now be in the region of £83m, compared with forecasts of more than £100m. Promethean warned only in April that US school budget cuts had hit revenues with sales in North America down a stonking 40%. But it then tried to placate angry shareholders by saying that the key buying season from June to September would hopefully bring about a recovery. So far, no good.

Peel Hunt downgraded to sell from hold with analyst Alex Jarvis now expecting a loss of £7-8m in the first-half and a full-year outcome in the range of a small loss to a small operating profit.

[she-ra] 29/6/2012 15:54

I think the insitutions will be getting out of this one over the next week.

High single figure operating loss is significant and thats just for one half.

[garth] 29/6/2012 12:13

Although I would add that I think PVCS have a better chance of recovery..... And I struggle to see Promethean's flotation timing as anything other than a tad cynical.....

[garth] 29/6/2012 12:11

As a PVCS holder I concur!

[she-ra] 29/6/2012 11:57

Salpara111- I agree I was thinking of PV Crystalox when I was looking at PRW earlier this morning.

[salpara111] 29/6/2012 11:28

As someone who is sitting on an epic loss at PVCS don't get too carried away by balance sheet strength. PVCS share price is less than half the companys' net cash position. This can easily get walked down from here.

[empirestate] 29/6/2012 11:00

atleast the co has a half decent balance sheet with plenty of cash, but think its worth waiting for results to get a better feel for this

[ianio5691] 29/6/2012 10:07

These boards were unique and inspirational when they were first introduced, and were the preferred choice of most schools.
The competition has caught up quickly, and similar products are being brought in from China at a fraction of the price.
Have PRW lost their IP competitive edge......

[masurenguy] 29/6/2012 09:48

Another new all time low - this time below 20p ! They are now 67% down this year and 90% down against their IPO just over 2 years ago !

So glad that I exited at 71.5p just over a year ago. The prospects here look even more dire as each trading statement is released. Todays statement indicates that sales will be down by circa 25% on H1 last year and they are now projecting a trading loss this year. At some future point I can see thee being some form of merger/takeover of Smart Technologies in the US who are also hemorraging cash. There is not room for two losing companies in this sector and a single dominant player may just have the economies of scale to survive and subsequently prosper.

Masurenguy - 9 Feb'11 - 263: Made an initial purchase @62.5p within an equity ISA today. Circa 67% of Prometheans sales are in the US market and their main competitor Smart Tech reported yesterday that their Q3 US sales were up by 27% over the comparative quarter in the prior year.

Masurenguy - 19 May'11 - 305: Yes, the SMT results last night were disappointing as was their outlook statement for 2011. Consequently I took profits here first thing having bought in at 62.5p earlier this year. I cannot see any short term momentum to sustain the recent 35% price rise which has started to slip back over the past week.

RNS Number : 4380G
Promethean World Plc
29 June 2012

Trading Update

The seasonal trend in the US of high levels of order activity at the end of June has not materialised at the levels anticipated. Revenues for the first half of the year are therefore now expected to be in the range of £80m-£85m and, with gross margins lower than last year, it is anticipated that the Group will post a high single digit (£m) operating loss for the first half of the year, although the Group has a positive cash balance and undrawn bank facilities. The third quarter remains a key trading period. However, Promethean considers that market conditions will remain very challenging, and the Board now believes that the results for the year will be significantly below previous expectations. Promethean will therefore continue to align its cost base to these tougher market conditions and this will lead to an exceptional charge in 2012.

[masurenguy] 07/6/2012 08:31

New all time low and the first time the shares have breached 40p ! Based on Decembers results they are now trading on a trailing PER of just under 7 with net cash of circa 10.5p per share.

[she-ra] 06/6/2012 17:30

Why the rise on small volume? Is Shares mag going to tip it again?

[masurenguy] 31/5/2012 16:13

Still falling in concert with SMT - both down a further 15% since the begining of last week !

[she-ra] 29/5/2012 16:48

Next news from PRW is either going to be really good or a really bad profits warning.Its flip a coin time.

[masurenguy] 22/5/2012 16:46

I see that their main competitor, Smart Technologies (SMT), is now trading at $1.50. That represents a 91.5% fall from their IPO at $17.50, just under 2 years ago, in July 2010. In contrast, PRW is only down
by just 77% since their IPO in March 2010 !

[she-ra] 27/4/2012 17:16

Volume isnt massive but the rise makes wonder whether it is about to be tipped.

Brokers have been recommending it as a buy but do the fund managers want to get out?

[masurenguy] 27/4/2012 09:38

Interims last week were disappointing but the ongoing poor performance of SMT in the US indicated that this was on the cards. Still sitting on the sidelines here after taking profits and exiting at 71.5p last May.

At least PRW is still in a net cash position with a residue of IPO funds. In the States SMT is saddled with $200m net debt. If things don't improve in this sector over the next 12 months then we might see some consolidation here with a potential PRW/SMT merger or reverse takeover. Interesting times !

Edit @9.50: I have just noticed that both of the founders of SMT, who were operating as Exec Chairman and CEO respectively, were pushed out yesterday.

[she-ra] 18/4/2012 11:37

Kiss of Death from Shares Magazine once again.

Im surprised its not dropped more.Cant trust the management now.

[kingmidas2] 28/2/2012 14:48

Price target from Shs Mag, 9th Feb, assuming good full years results today and a 2012 p/e of 10 is 95p. 'Execution reckons a surge towards 116p is likely'.

[geheimnis2] 28/2/2012 10:22

did shares mag have a price target nw?

[nw99] 28/2/2012 10:21

Shs mag last Thursday tipped this and they were spot on with the numbers .

[geheimnis2] 28/2/2012 10:05

lol clearly a very unloved stock

i doubled my holding today

masurenguy - are you still around?

*hears echoes rebounding off the walls*

[geheimnis2] 28/2/2012 08:44

good results - i can see this being re-rated to 80-90p in the short term

[nw99] 28/2/2012 08:05

Looks like the market likes the numbers this am