Promethean Share Discussion Threads

[she-ra] 12/12/2012 15:01

Little bit of buying today. A tipster sharpening their pencil maybe?

[geheimnis2] 06/10/2012 08:21

Lol

Why would any cash raise need to be deeply discounted?

Anyways not much point in discussing further

Ciao

;-)

[boonkoh] 05/10/2012 21:18

Geheimnis2: "... can also go to the market for more cash"

If you think this way, you should definitely not be holding shares. As when they go to the market, having used up their debt facilities, they'll have to offer a big discount to whatever share price at that time, and the shares will tank further when those dilutive new shares are trading.

[she-ra] 05/10/2012 17:55

They can go to the market?Who would trust them now when they joined the 90% club and there business model isnt working?

[geheimnis2] 05/10/2012 15:59

they have undrawn loan facilities and can also go to the market for more cash, assuming there is a longer term valuable business

so yes i do

[she-ra] 05/10/2012 15:57

"they wont go bust so just need to hold on"

You think with all that cash burn and losses?

[geheimnis2] 05/10/2012 15:49

maybe she-ra

i think PRW is good value at these levels given that before the cuts started kicking in it was doing 8p or so of earnings

of course doesnt mean they will ever do 8p again but risk reward is pretty good

they wont go bust so just need to hold on

[she-ra] 05/10/2012 15:43

Geheimnis2 - After such a dramatic fall such as with PRW there is usually a 10% rise with shares the following day.I think most will agree to that.But with PRW no such bounce.

The revenue decline is accelerating.There is little visibility for investors.

I can only see a bounce if some city scribbler thinks up a takeover rumour otherwise I dont see it bottoming at this price.

[geheimnis2] 05/10/2012 15:30

lol

you hope, she-ra

[she-ra] 05/10/2012 14:23

Not even a decent deadcat bounce.It suggests that this has alot further to fall.

[geheimnis2] 05/10/2012 12:14

why would you want a discount to net working capital? strange metric?

[rainmaker] 05/10/2012 11:59

IMHO the key question here is does this Company has a viable, profitable future?Still researching but my initial thoughts are that I would want a substantial discount to net working capital so somewhere just between 7p to 10p ie two thirds to a half of NWC.

I'm not in too much of a hurry since experience has taught me that overwhelmingly these types of situations the share price won't suddenly reverse after a large drop and the MM will test both the nerve and patience of holders

regards

[she-ra] 04/10/2012 14:11

Im thinking it will reach the bottom around 6-7p

[masurenguy] 04/10/2012 13:35

Promethean World worth tenth of IPO price

Promethean World is the latest company to join the 90% club after another slide in its shares left the company worth just £34m. The interactive whiteboard maker floated in March 2010 at 200p, but slumped as low as 14p today after a slowdown in its key education markets prompted another profit warning. The fall means that shares are now 91%lower than the float price. More..........

[she-ra] 04/10/2012 10:31

Reminds me of PV Crystalox.

[pugugly] 04/10/2012 09:23

Masurenguy:> Thanks for your insight - seems to be a little bottom fishing at the moment but I agree with you re cash burn and associated risks.

[masurenguy] 04/10/2012 08:49

Still heavily dependent on equipment sales with no significant recurring income stream. The significant fall in YTD sales accelerated in Q3. They claim that cost reductions will start to kick in this year but it is difficult to know whether they will still post a profit or go into loss for the first time. I assume that they might still post a small YE profit. They also burned through £900k of cash per month during Q3 and if this continues in Q4 then they will have only circa £3m net cash at the year end. Does not look good at this stage but in my view one really needs to see the full year figures to get a real handle on exactly where they are now.

[pugugly] 04/10/2012 08:23

Masurenguy:> had a quick look as after today's fall market cap to revenue seems very compelling but so far as I can see minimal service (i.e. ongoing support revenue) and therefore very dependent on original equippment sales.

Am I correct? - If yes very much at risk from lower priced competitors. (imo)

Thanks for your informative posts above i have kept finger off the buy button.

[knigel] 04/10/2012 07:14

Im going to let the dust settle but circ 10p could be good entry point if u r patient

[masurenguy] 04/10/2012 07:11

New all time low, down 35% @14.7p.

[masurenguy] 04/10/2012 06:15

The decline continues to accelerate. Having briefly invested here @63.4p in Feb 2011 as a recovery play I then exited with some profit @72.3p in May of that year following a poor SMT results announcement. Not seen any reason to reinvest since then and todays results demonstrate that no potential turnaround is yet in sight. At the end of Q3 their net cash position had declined to circa 3p per share.

At some point I anticipate a possible merger/takeover with their main North American competitor SMT (who are also in decline but unlike PRW they have considerable debt) and if and when that happens a combined entity would have over 70% of the global market in this sector. At that stage the forward investment prospects might be worth reveiwing once more.

4 October 2012
Promethean World Plc
Interim Management Statement

Continued budgetary pressures. Cost reduction programme progressing well.

Promethean World Plc (LSE: PRW), a world leader in the global market for interactive learning technology, today publishes its interim management statement for the nine-month period ended 30 September 2012.

Trading Performance

The trading environment in key markets during the third quarter has continued to be challenging. Consequently, the quarter and year-to-date revenues for both the North America and International sales regions are down versus prior year comparatives. Demand during the key buying season in the US has been lower than recent years, and this has been accentuated by the delay in a large order, which is now anticipated to be received in the fourth quarter.

Year-to-date group revenue was £123.2m, 30.0% lower than the same period in 2011 (£175.9m), 30.3% lower on a constant currency basis.

Third quarter group revenue was £40.0m, down 41.2% versus the third quarter in 2011 (Q3 2011: £68.0m), or down 40.9% on a constant currency basis.

Year-to-date interactive display system revenues were £108.8m, and learner response system revenues were £14.4m, down 30.1% and 29.3% respectively on the same period in 2011 (2011: £155.6m and £20.3m respectively).

Third quarter interactive display revenues were £36.6m and learner response system sales were £3.4m, down 39.5% and 55.3% respectively versus the third quarter in 2011 (Q3 2011: £60.4m and £7.6m respectively).

Year to date volumes of interactive display systems were 102,000 and of learner response systems were 435,000, down 23.7% and 35.1% respectively on the same period in 2011 (2011: 134,000 and 670,000 respectively).

In the third quarter, Promethean sold 37,000 interactive display systems and 115,000 learner response systems, down 30.9% and 53.0% on the third quarter 2011 (Q3 2011: 53,000 and 245,000 respectively).

As at 30 September 2012, Promethean had a net cash position of £5.8m (30 June 2012: £8.5m). The group's borrowing facilities remained undrawn throughout Q3 2012 and we continue to anticipate the group will have a net cash balance at the year end.

Operating cost reduction

Significant and timely progress has been made on the cost reduction measures outlined in our interim announcement. We are now targeting the level of cost reduction in 2013 to be at the higher end of the 20-25% range (versus 2011 levels) that was previously quoted. Consequently, operating costs for 2012 will be lower than previously expected with the full benefits being realised in 2013.

New Products and Initiatives

The first deliveries of the ActivTable have been made during in Q3 2012 and initial customer feedback has been very positive. The rollout of our ActivProgress software to over 300,000 students in Mexico is ongoing and good progress is also being made on creating a Private Planet community for up to 100,000 Mexican teachers. These projects are a first proof point of our emerging software strategy. Promethean Planet continues to grow strongly and now has over 1.45 million members, an increase of 33% over the last twelve months, and in excess of 65,000 teaching resources.

Summary and outlook

In the short term, the key education markets are constrained by customer funding issues, especially in the US and Europe. This is reflected by the group's performance year-to-date and in the third quarter, which was also affected by the delay of a large contract that is now anticipated to fall into the fourth quarter. The cost reduction programmes are proceeding well and Promethean is now targeting to be at the upper end of its earlier range of 20 to 25% overall operating cost reductions. Looking ahead for the current year, however, the group now anticipates that full year results will be below current market expectations.

For 2013, the group expects that market conditions will continue to remain difficult. Promethean is resizing its cost base to reflect these realities, with the aim of remaining an underlying profitable cash positive business whilst protecting its core investments in R&D. Promethean believes that, over the longer term, the impact of interactive learning technology is proven and this, coupled with the development of our integrated software and hardware strategy, means that Promethean remains well positioned to benefit when market conditions improve.

[she-ra] 24/9/2012 10:45

Jean-Yves Charlier dumping?

If he is he has alot to dump.

[she-ra] 07/8/2012 15:44

Approx 50% of revenues come from the US and commentators are talking about a fiscal cliff in America.Are things going to get worse here and do products such as the HP Pocket Whiteboard and similar products from emerging players present a major threat to the traditional interactive whiteboard market that Promethean is currently holds a No.2 position in.


The HP offers portability and help overcome the fixed room situation. In terms of business they allow this sector to not be fixed to buildings with interactive whiteboards meaning costs can be kept lower.