Fears as share price falls at Blackburn technology firm Promethean

6:00pm Monday 8th October 2012 in News

Promethean's Blackburn HQ Promethean's Blackburn HQ

JOBS could be axed at hi-tech firm Promethean after its share price plunged almost 30 per cent.

The school whiteboard maker is now carrying out cost-cutting measures and it is understood a consultation is under way over a 'small number' of job losses at its headquarters in Blackburn.

The company blamed the “challenging” environment in America and Europe for the dramatic slump in its share price, which was 200p when it floated on the stock exchange two years ago and was yesterday 16p.

According to its interim management statement, group revenue was down 40 per cent to £40.1million up to September 30.

The group sold 37,000 interactive display systems and 115,000 learner response systems in the third quarter, down from 53,000 and 245,000 respectively in the same period last year.

The statement said: “The trading environment in key markets during the third quarter has continued to be challenging.

“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.”

The company said it was on target to cut costs by 20 per cent to 25 per cent, adding: “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 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 while protecting its core investments in R&D.”

In July chief executive Jean-Yves Charlier announced his resignation after a dramatic drop in revenues. Jim Marshall has now taken charge.

The company, founded by Tony Cann in 1997, employs around 900 people worldwide.

Comments (13)

6:21pm Mon 8 Oct 12

2 for 5p says...

Oh dear. ;)
Oh dear. ;) 2 for 5p

6:36pm Mon 8 Oct 12

Scooby says...

It's a funny business.. it's great as a new product, shipping them out to all the schools.. but once they've got them, why would they buy more?

I fear they've had their boom and the bust is on it's way unless they can diversify into some other product line
It's a funny business.. it's great as a new product, shipping them out to all the schools.. but once they've got them, why would they buy more? I fear they've had their boom and the bust is on it's way unless they can diversify into some other product line Scooby

6:48pm Mon 8 Oct 12

ROBERTSLUMDWELLER123 says...

you can bet the job cuts will be in the UK and not one of the 3rd world countries that produce the product for th B/Burn Co..
you can bet the job cuts will be in the UK and not one of the 3rd world countries that produce the product for th B/Burn Co.. ROBERTSLUMDWELLER123

6:53pm Mon 8 Oct 12

mavrick says...

And to think the condems want workers to give up their right to redundancy pay and unfair dismissal claims in exchange for shares, They are even suggesting that new employees would be forced to take the deal.
And to think the condems want workers to give up their right to redundancy pay and unfair dismissal claims in exchange for shares, They are even suggesting that new employees would be forced to take the deal. mavrick

7:06pm Mon 8 Oct 12

Kevin, Colne says...

The company issued the IMS last Thursday morning at 0700. I am surprised that the LT has taken four days to restate the facts.

Starting this story with the statement 'JOBS could be axed at hi-tech firm Promethean after its share price plunged almost 30 per cent. is, I fear, somewhat misleading as at first glance one might misinterpret this to mean that the fall in the share price is the cause of possible job losses. Obviously, this is not the case.

The share price collapsed because the management of the company informed the owners that they anticipate that full year results will be below expectations and that the company will be 're-sizing the cost base'. In other words: job losses are on the cards.

This must be a very worrying time for employees and all the more so because there seems to be no end in sight to the difficulty that the company is experiencing in key markets, notably in the United States of America (USA).

One of the problems of doing business in the USA arises from the corruption of official economic data such as GDP, inflation and unemployment figures etc. A far better picture of the true state of the USA economy can be found at John Williams' shadowstats.com It does not make pleasant reading.
The company issued the IMS last Thursday morning at 0700. I am surprised that the LT has taken four days to restate the facts. Starting this story with the statement 'JOBS could be axed at hi-tech firm Promethean after its share price plunged almost 30 per cent. is, I fear, somewhat misleading as at first glance one might misinterpret this to mean that the fall in the share price is the cause of possible job losses. Obviously, this is not the case. The share price collapsed because the management of the company informed the owners that they anticipate that full year results will be below expectations and that the company will be 're-sizing the cost base'. In other words: job losses are on the cards. This must be a very worrying time for employees and all the more so because there seems to be no end in sight to the difficulty that the company is experiencing in key markets, notably in the United States of America (USA). One of the problems of doing business in the USA arises from the corruption of official economic data such as GDP, inflation and unemployment figures etc. A far better picture of the true state of the USA economy can be found at John Williams' shadowstats.com It does not make pleasant reading. Kevin, Colne

7:53pm Mon 8 Oct 12

Kevin, Colne says...

mavrick wrote:
And to think the condems want workers to give up their right to redundancy pay and unfair dismissal claims in exchange for shares, They are even suggesting that new employees would be forced to take the deal.
Mavrick,

Frankly I’m flabbergasted by some of the outrageous ideas that are coming from the ‘Silver Spoons’ in the parties that are now in government. I think this gives an indication of the degree of their detachment and utter desperation. They are, of course, trying to hold a failing system of fiat money together as best they can, but austerity (expansionary contraction) or accelerating government spending is merely buying time.

George Osborne’s idea of workers becoming part-owners of a business has some merit in principle but not in exchange for relinquishing statutory rights of employment protection; or in a business that has poor economic fundamentals.

If the business goes bust you lose your income from employment and your accumulated capital, as any member of staff working for JJB and owning shares in the company will readily testify. Had they fallen for Osborne’s plan they would now be out of work and without redundancy pay, and their shares would not be worth a bean.

Kevin
[quote][p][bold]mavrick[/bold] wrote: And to think the condems want workers to give up their right to redundancy pay and unfair dismissal claims in exchange for shares, They are even suggesting that new employees would be forced to take the deal.[/p][/quote]Mavrick, Frankly I’m flabbergasted by some of the outrageous ideas that are coming from the ‘Silver Spoons’ in the parties that are now in government. I think this gives an indication of the degree of their detachment and utter desperation. They are, of course, trying to hold a failing system of fiat money together as best they can, but austerity (expansionary contraction) or accelerating government spending is merely buying time. George Osborne’s idea of workers becoming part-owners of a business has some merit in principle but not in exchange for relinquishing statutory rights of employment protection; or in a business that has poor economic fundamentals. If the business goes bust you lose your income from employment and your accumulated capital, as any member of staff working for JJB and owning shares in the company will readily testify. Had they fallen for Osborne’s plan they would now be out of work and without redundancy pay, and their shares would not be worth a bean. Kevin Kevin, Colne

8:25pm Mon 8 Oct 12

2 for 5p says...

Hey you may as well start practicing signing your name, it will come in handy every Thursday. :)
Hey you may as well start practicing signing your name, it will come in handy every Thursday. :) 2 for 5p

8:55pm Mon 8 Oct 12

jack daniels says...

mavrick wrote:
And to think the condems want workers to give up their right to redundancy pay and unfair dismissal claims in exchange for shares, They are even suggesting that new employees would be forced to take the deal.
The Tories are trying to take us back 100 years. We must be at the point where the yellow bellied lib dems can't stomach any more
[quote][p][bold]mavrick[/bold] wrote: And to think the condems want workers to give up their right to redundancy pay and unfair dismissal claims in exchange for shares, They are even suggesting that new employees would be forced to take the deal.[/p][/quote]The Tories are trying to take us back 100 years. We must be at the point where the yellow bellied lib dems can't stomach any more jack daniels

9:49pm Mon 8 Oct 12

Graham Hartley says...

2 for 5p wrote:
Hey you may as well start practicing signing your name, it will come in handy every Thursday. :)
Isn't that every other Thursday? Proud to be such a ****.
[quote][p][bold]2 for 5p[/bold] wrote: Hey you may as well start practicing signing your name, it will come in handy every Thursday. :)[/p][/quote]Isn't that every other Thursday? Proud to be such a ****. Graham Hartley

9:59pm Mon 8 Oct 12

Graham Hartley says...

Thanks to Kevin, Colne for his thoughtful contributions to this and other matters of local and national economics.
Thanks to Kevin, Colne for his thoughtful contributions to this and other matters of local and national economics. Graham Hartley

11:08pm Mon 8 Oct 12

2 for 5p says...

Graham Hartley wrote:
**** = p_r_i_c_k
yes Graham every second Thursday. You seem to know alot about it I wonder why. :-)
[quote][p][bold]Graham Hartley[/bold] wrote: **** = p_r_i_c_k[/p][/quote]yes Graham every second Thursday. You seem to know alot about it I wonder why. :-) 2 for 5p

12:32pm Tue 9 Oct 12

volvowoman says...

too many greedy people took over the company, I feel for the folks at Blackburn as they have been shafted good and proper, and inspite of his position I feel for Mr Cann too, it was his 'baby' and he wanted big things to come from it. Sadly this did not happen
too many greedy people took over the company, I feel for the folks at Blackburn as they have been shafted good and proper, and inspite of his position I feel for Mr Cann too, it was his 'baby' and he wanted big things to come from it. Sadly this did not happen volvowoman

1:29pm Tue 9 Oct 12

makaveli96 says...

Getting rid of Jason was there downfall
Getting rid of Jason was there downfall makaveli96

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