Promethean World plunges on profit warning

Shares in Promethean World, the supplier of education technology, dived almost 40 per cent on Friday after revising its revenue prediction for the first half of the year lower after the seasonal trend in the US of high levels of order activity at the end of June failed to materialise at the levels anticipated.

Revenues for the first half of the year are therefore now expected to be in the range of £80m-£85m and, with gross margins lower than last year, and it is anticipated that the group will post a high single digit (£m) operating loss for the first half of the year.

The firm was keen to emphasise that the group has a positive cash balance and undrawn bank facilities.

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In a statement the company said: "The third quarter remains a key trading period. However, Promethean considers that market conditions will remain very challenging, and the Board now believes that the results for the year will be significantly below previous expectations. Promethean will therefore continue to align its cost base to these tougher market conditions and this will lead to an exceptional charge in 2012."

The share price fell 39.57% to 21p by 13:29.

NR