Fears as share price falls at Blackburn technology firm Promethean
6:00pm Monday 8th October 2012 in News
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.