The Vitec Group PLC Trading Update (8414M)
May 12 2015 - 1:00AM
UK Regulatory
TIDMVTC
RNS Number : 8414M
The Vitec Group PLC
12 May 2015
12 May 2015
The Vitec Group plc
Trading Update
The Vitec Group plc ("Vitec" or the "Group"), the international
provider of products and services for the Broadcast and
Photographic markets, announces the following trading update for
the first four months of the financial year, ahead of the Annual
General Meeting to be held later today.
The Group performed satisfactorily in the first four months of
the year. Market conditions remain challenging although showing
some signs of stabilisation. The Board remains confident about the
mid-term prospects for the Group and its expectations for the full
year remain unchanged.
As previously reported, Vitec's first half results will reflect
the non-repeat of the significant performance at the 2014 Sochi
Winter Olympics and a negative impact from foreign exchange;
consequently, the first half results are expected to be lower than
the same period last year. A stronger performance is anticipated in
the second half of the year as the Group's markets start to
recover, supported by new product sales. The foreign exchange
impact principally reflects the unwinding of previous cash-flow
hedges put in place as part of the Group's well-established hedging
policy. If exchange rates remain at current levels, Vitec will
benefit from a stronger US dollar, partially offset by a weaker
Euro, from 2016 onwards.
The Broadcast Division performed broadly in line with the same
period last year in variable market conditions after adjusting for
foreign currency and the non-repeat of the Winter Olympics. In
February 2015, Vitec acquired the business and net assets of
Paralinx, a US producer of high quality wireless video systems, for
a net cash consideration of up to GBP4.1 million ($6.3 million).
This business has been successfully integrated into the Teradek
wireless products business.
The Photographic Division traded in line with our expectations.
The Division continues to benefit from the release of new products
including its ranges of tripods and bags and the recent launch of
the iPad-based Manfrotto Digital Director which has received
positive feedback from customers.
At 30 April 2015, Group net debt was as expected at GBP86.3
million, reflecting seasonality and after GBP8.7 million of cash
outflows relating to acquisitions as well as the impact of foreign
exchange on US dollar debt, and cash spent on the previously
announced restructuring. This compares to net debt of GBP70.9
million at 31 December 2014.
"Investing For Growth" Presentation
On 22 April 2015 the Group held a presentation for institutional
investors and analysts on "Investing for Growth". Copies of the
presentation slides are available on the Group's website.
The presentation reviewed how Vitec has been streamlined and
strengthened over the last four years and is well placed to drive
sales growth as its markets recover. The summary points were:
-- Core Broadcast and Photographic markets are showing some
signs of stabilising and are expected to grow in the mid-term;
-- Vitec is well placed to capitalise on these markets given its
strong brands, market positions and global distribution;
-- There is a clear strategy focussed on improving the core
business, including sales to independent content creators;
expanding Vitec's presence and sales in APAC; and continuing to
make value-adding acquisitions;
-- Vitec has a strong platform to succeed with an improved new
product development process, a greater technology focus and a
stronger organisation.
Half Year Results
Vitec is scheduled to release its half year results announcement
on Thursday 6 August 2015.
Enquiries:
The Vitec Group plc
Stephen Bird, Group Chief Executive
Paul Hayes, Group Finance Director
Telephone: 020 8332 4600
FTI Consulting
Nick Hasell / Susanne Yule
Telephone: 020 3727 1340
Notes:
1. Average foreign exchange rates in the period from January to
April 2015: GBP1 = $1.52, GBP1 = EUR1.35, EUR1 = $1.13, GBP1 =
Yen181
2. Average foreign exchange rates in 2014: GBP1 = $1.65, GBP1 =
EUR1.24, EUR1 = $1.33, GBP1 = Yen174
A Snapshot of The Vitec Group
Vitec is a global provider of premium branded products and
services to the Broadcast and Photographic markets. Vitec is listed
on the London Stock Exchange with 2014 revenue of GBP309.6
million.
The Group is organised in two Divisions:
The Broadcast Division designs, manufactures and distributes
premium branded products for broadcasting, film and video
production for broadcasters and independent content creators. It
also provides premium services including equipment rental and
technical solutions to TV production teams and film crews.
The Photographic Division designs, manufactures and distributes
premium branded equipment and provides dedicated solutions to
professional and non-professional image takers.
More information can be found at: www.vitecgroup.com.
This announcement contains forward-looking statements that are
based on management's current expectations or beliefs as well as
assumptions about future events. These are subject to risk factors
associated with, amongst other things, the economic and business
circumstances occurring from time to time in the countries and
sectors in which the Group operates. It is believed that the
expectations reflected in these statements are reasonable but they
may be affected by a wide range of variables which could cause
actual results, and Vitec's plans and objectives, to differ
materially from those currently anticipated or implied in the
forward-looking statements. Investors should not place undue
reliance on any such statements. Nothing in this announcement
should be construed as a profit forecast.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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