Wipeout for the Whiteboard Maker

Many of you will have a Promethean IWB in your classroom or IT suite and perhaps a comprehensive range of Promethean software and resources to use with it. Next time you fire the IWB up, you might allow your students to reflect on the dismal 2010 that Promethean has experienced since it floated its shares on the Stock Exchange about 9 months ago.

This article in the Guardian today is packed full with useful inights into just what can go wrong for a business that floats on the stock market - even in a relatively short period of time. The numbers so far as shareholders are concerned are staggering. When Promethean World floated in M’arch 2010 the business was valued at £400million (i.e. its “market capitalisation”). After sharp falls in its share price following profit warnings, Promethean World is worth just £105million. That’s really bad news if you bought shares in the floatation and haven’t sold them before now.

A key question for students to consider would be why investors have taken fright with Promethean? Why has demand for IWB in its key markets slowed?