17 November
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 period from 1 July 2015 to 31 October
2015.
Overall, trading since the half year
results has been satisfactory. However, our markets remain
challenging and, despite some signs of stabilisation, we are yet to
see the anticipated recovery in our traditional markets. As a
result, the Board now expects a small reduction from its previous
expectations for the full year.
The Broadcast Division has continued
to experience variable market conditions. Our higher technology
product businesses are performing well, offsetting lower sales of
large camera supports. The streamlining of certain activities with
lower growth prospects, as outlined in our 2015 half year results
announcement, is progressing in line with our plans. Management of
this division has been reorganised with Matt Danilowicz (Chief
Executive of the Broadcast Division) having left the Group and
senior management now reporting directly to Stephen Bird, Group
Chief Executive.
The Photographic Division continues
to face challenging markets, particularly in the US, but we
continue to see some signs of stabilisation after several years of
decline. This is supported by recent CIPA data for global shipments
of interchangeable lens cameras.
We are pleased to have appointed
Caroline Thomson to the Board of the Company as a Non-Executive
Director and Chairman of the Remuneration Committee. Caroline
succeeds Carolyn Fairbairn, who stood down from the Board on 31
October 2015.
The Group remains in a sound
financial position and the Board remains confident about the future
growth prospects of the Group. Although the challenging market
conditions look likely to continue into next year, in 2016 we will
benefit from the Rio 2016 Olympics, a small net foreign exchange
benefit and the impact of previously announced restructuring
initiatives.
Vitec is scheduled to release its
full year results announcement on 23 February 2016.
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
October 2015: £1 = $1.54, £1 = €1.38, €1 = $1.11, £1 =
Yen185
2. Average foreign exchange rates in 2014: £1 = $1.65, £1 =
€1.24, €1 = $1.33, £1 = Yen174
3. The current consensus for Profit Before Tax (before
restructuring costs and costs associated with acquired businesses)
is £33.25 million: Investec £33.0 million; Arden Partners £33.5
million.
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 £309.6 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 with respect to the financial condition,
performance, position, strategy, results and plans of The Vitec
Group plc based on Management's current expectations or beliefs as
well as assumptions about future events. These forward-looking
statements are not guarantees of future performance. Undue reliance
should not be placed on forward-looking statements because, by
their very nature, they are subject to known and unknown risks
and uncertainties and can be affected by other factors that could
cause actual results, and the Group's plans and objectives, to
differ materially from those expressed or implied in the
forward-looking statements. The Group undertakes no obligation to
publically revise or update any forward-looking statements or
adjust them for future events or developments. Nothing in this
announcement should be construed as a profit forecast.