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Promethean hit by decline in public spending

Simon Quicke

It had warned the market that things were going to be tough and sure enough the numbers in the interim trading statement from interactive whiteboard specialist Promethean World were down.

The vendor has been hit hard by the decline in public sector spending and saw its revenues drop by 22% to £53.9m in the first three months of this year.

Its traditional product segments both saw declines with interactive display system revenues down by 20% to £36.6m and learner response system turnover dropping by 35% to £5.3m.

In response to the tough conditions the vendor has been resizing its cost base and remains optimistic that things will improve, but warned the recovery was going to be fairly slow.

"Promethean continues to believe that the long-term demand drivers remain strong, but that market conditions will remain challenging at least through 2011, due to public sector budgetary uncertainties and constraints, and is planning its business on this basis," stated the vendor.

The Q1 numbers follow on from a tough end to the year when preliminary results for the year ended 31 December 2010 showed a sharp slowdown in the second half of last year.

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