Promethean World Plc Interim Management Statement (1799E)

TIDMPRW

RNS Number : 1799E

Promethean World Plc

08 May 2013

8 May 2013

Promethean World Plc

('Promethean' or 'the Group')

Interim Management Statement

Trading in line with expectations

Promethean World Plc (LSE: PRW), a world leader in the global market for interactive learning technology, publishes its interim management statement for the three month period ended 31 March 2013.

Trading Performance

First quarter results are in line with expectations. First quarter group revenues were GBP27.8m, 22.5% lower than the GBP35.9m revenues in the first quarter last year, or 24.3% lower on a constant currency basis. However, the comparative period included significant revenues in relation to a Russian contract win. Excluding these Russian contract revenues, group revenues in Q1 2013 would have been approximately 1.7% higher than Q1 2012.

Operating costs for the first quarter benefitted from the actions taken in the second half of 2012 and were significantly lower than in Q1 2012.

Interactive display system revenues for the quarter were GBP25.7m, a reduction of 17.7% compared to GBP31.3m for the first quarter in 2012. In volume terms, Promethean sold approximately 22,000 interactive display systems versus 29,000 in Q1 2012, a 23.9% reduction, or a 9.3% increase excluding the Russian tender in Q1 2012. Learner response system handset revenues reflect the increasing popularity of tablets in classrooms and were GBP2.1m versus GBP4.6m for the first quarter in 2012. Promethean's new ActivTablet range, with the latest release of ActivEngage learner response software embedded, is anticipated to be launched later this quarter.

Promethean had net cash of GBP10.8m as at 31 March 2013 versus GBP8.0m as at 31 December 2012.

Business Update

We are making good progress on our software strategy, outlined in the 2012 Full Year results announcement, building on our strength in the classroom outwards, with product launches scheduled throughout this year. Later this quarter, revenues from the licensing of ActivInspire software to interactive projector providers, BOXLIGHT and Epson, will commence and Promethean's new ActivBoard Touch range will also be launched.

Promethean Planet continued to grow rapidly and, as at 31 March 2013 had over 1.6 million members, an increase of 24.4% versus 31 March 2012 and an increase of 76,000 members since 31 December 2012.

Outlook

We maintain our outlook for this year, expecting that market conditions will continue to be challenging throughout 2013. As previously stated, the first financial impacts of our software strategy will not be felt until during 2014. We are benefitting from the actions taken to reduce our operating cost base, designed to ensure Promethean can be EBITDA profitable and cash positive in the current market environment. The key buying season from June to September, particularly in the US, will better inform our potential performance for the year. We will continue to manage our business prudently.

Interim results

Promethean expects to release its interim results for the six months ended 30 June 2013 on 1 August 2013.

Enquiries

   Promethean                                                                 + 44 (0) 1254 290749 

Jim Marshall, Chief Executive Officer

Neil Johnson, Chief Financial Officer

   Citigate Dewe Rogerson Consultancy                          + 44 (0) 20 7638 9571 
   Anthony Carlisle                                                             + 44 (0) 7973 611 888 

About Promethean

Promethean. Spark Inspiration.

Promethean (LSE: PRW) is a global education company. We create, develop, supply and support interactive education and training solutions for schools, businesses and governments. Our products and services are raising learning standards, revolutionising the way people learn and collaborate, making them more engaged, empowered and successful and thereby unleashing human potential. Headquartered in the UK, Promethean World Plc is listed on the main market of the London Stock Exchange. More information about Promethean is available at: www.PrometheanWorld.com.

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