Promethean sinks into the red
Blackburn-based Promethean, which distributes interactive whiteboards and learning equipment around the world, has registered a loss of £165.4m.The company, which had recorded £16m profit in the previous 12 months, said that £140m of the loss was due to the group reappraising the carrying value of its assets.
However, tough trading conditions in both the US and Europe also meant a dramatic fall in sales, down almost a third to £157m in the year ending December 31.A company statement read: “Market conditions, particularly in the US and Europe, were tough throughout 2012 and continue to be so, with education budgets remaining under pressure and increased competition for interactive hardware technology.
“Against this backdrop, we maintained strong cash management and took rapid action to implement a cost reduction programme and streamline our operations. This programme was delivered within time and beyond expectations.“The full benefits of these cost reductions will be felt in 2013. In the second half of 2012, we remained broadly cash neutral whilst undertaking our cost reduction programme.
“Promethean is responding to a rapidly changing market with multiple initiatives to build on our presence as an education solutions provider with a strong position in both hardware and in the applications and infrastructure software arenas. “It will take time for the impact of our software initiatives to be felt and 2013 will be a year of transition in this respect.”