TIDMPRW

RNS Number : 2795W

Promethean World Plc

06 November 2014

6 November 2014

Promethean World Plc

('Promethean' or 'the Group')

Interim Management Statement

Maintaining full year revenue outlook

Accelerating ClassFlow(TM) sales and marketing

Promethean World Plc (LSE: PRW), a leader in the global market for interactive learning technology, today publishes its interim management statement for the third quarter and nine-month period ended 30 September 2014.

Trading Performance

Year-to-date group revenue of GBP88.5m is 17.7% lower than the same period last year (2013: GBP107.6m), or 12.0% lower on a constant currency basis. Third quarter revenues at GBP30.8m were down 17.9% on the prior period (Q3 2013: GBP37.5m), or 12.8% lower on a constant currency basis.

In North America and the International regions reported revenues were each down on Q3 2013, by approximately 18%. However, we are seeing a strengthening of the underlying run-rate business in the International region, and increased tender opportunities in both regions. Group volumes of interactive display systems sold in the quarter were 5.3% lower than in Q3 2013. The sales mix of interactive displays in Q3 2014 was also more heavily weighted towards lower cost boards than in the prior year. In addition, revenues from HMH lesson content in the quarter were lower than in Q3 2013.

Promethean expects to sign its first significant multi-year contracts for ClassFlow(TM) licences with school districts in the US during Q4. The cash proceeds from these licences are payable at the start of each contract year; however, as licence fee revenues are recognised over the term of the agreement, no significant ClassFlow(TM) revenues are expected to be recognised in 2014.

As at 30 September 2014, Promethean had net cash of GBP7.5m (30 June 2014: GBP9.2m).

Summary and outlook

In hardware, we are seeing a stronger tender pipeline building for the International region along with a steady flow of run-rate business. We also expect to trade well in North America in the fourth quarter. We therefore anticipate our fourth quarter revenues will be ahead of Q4 2013. We note the inherent risk on timing around the year end, if orders are concentrated towards the end of the period, but are maintaining our full year revenue expectations.

In software, customer interest in ClassFlow(TM) continues to strengthen, which increases our confidence in our strategy and its ability over time to build a significant and profitable recurring revenue stream.

Our underlying EBITDA remains in line with our expectations. However, due to strong interest in enterprise implementations of ClassFlow(TM) , we have accelerated our investment in sales and marketing activities over the second half of the year. Whilst this will benefit subsequent periods, the short-term impact will be to reduce EBITDA for the year by approximately GBP2m.

 
 Enquiries 
 Promethean                        + 44 (0) 1254 290749 
 Jim Marshall, Chief Executive 
  Officer 
 Ian Baxter, Chief Financial 
  Officer 
 
 Citigate Dewe Rogerson 
  Consultancy                     + 44 (0) 20 7638 9571 
 Anthony Carlisle                 + 44 (0) 7973 611 888

About Promethean

Promethean (LSE: PRW) is a global education company that improves learning productivity by developing, integrating and implementing innovative 21st century learning environments that make everyone more engaged, empowered and successful. Headquartered in the UK, with a US office in Atlanta, Georgia, Promethean World Plc is listed on the main market of the London Stock Exchange. More information about Promethean is available at: www.PrometheanWorld.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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