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Vitec's shares trade on 12 times forecast earnings, which looks undemanding compared with industrial stocks and broadcast-equipment companies generating similar gross margins. It now has a focused portfolio of businesses with strong brand names in exciting niche markets
Admittedly, defence work is lumpy and orders from the US Department of Justice - worth $7.6m (£4.8m) last year - were much lower. Yet sales of wireless products for US state police helicopters still grew, ensuring divisional profits jumped 40 per cent to £8.4m on sales up 12 per cent to £74m. And Vitec's share price will respond well to news of US government-funded contracts when they come. And imaging - Vitec's photographic unit - is exciting. Organic sales grew 4 per cent, despite the problems at staging, and profits rose 8 per cent to £10.4m. More professional photographers are buying its equipment and amateur snappers love the new premium, Manfrotto Powerbrand products, driving market share gains in the US and Europe. Hiring broadcast equipment for Olympics coverage also proved lucrative for the much smaller services division, which will ship kit to the US for November's presidential election. There's plenty to drive Vitec's share price. Broadcast and video markets are expected to grow 7 per cent a year, and both the photographic and military sectors by 5 per cent. True, Vitec's bosses did not upgrade their full-year profits guidance when reporting half-year figures, but there is potential for an earnings surprise, given £10m of Olympics money is still to come, the US election and the sale of the staging division.
Vitec has put sophisticated cameras in some odd places, most recently London's Olympic swimming pool and the Big Brother house. Now, its antennas and telemetric systems have reached Mars, but its bosses have their feet firmly on the ground. So, after a big strategic push and strong results, Vitec's shares look worth buying. That Vitec got to the red planet at all is down to Haigh-Farr, a US company it bought in December. Its kit, which is fitted to the parachute cone of the Mars entry vehicle, beamed data to the boffins at NASA. Haigh-Farr makes miniaturised transmitters for military drones and guided missiles, too, and is already generating profits for Vitec. It's a similar story at Camera Corps (CC), which cost just £8m in April and sits within Vitec's Videocom division, which makes a living from broadcasters and selling to the military, aerospace and government sectors. CC has already chipped in £1.4m of revenue and operating profit of £0.3m, and will do more in the second half after supplying small remotely operated high-definition cameras for the Olympics. These are smart acquisitions, but management, led by chief executive Stephen Bird, is not afraid to sell, either. Clear-Com, an underperforming wireless audio equipment business, went in 2010 and offloading the low-margin staging business last month looks sensible. That operation lost £0.5m in the first half of 2012 after sales slumped by a third and its disposal will cost Vitec over £2m. Its disposal will help return profit margins to pre-recession levels this year. Mr Bird thinks margins in the mid-teens are achievable. They leapt 1.6 percentage points in the first half of 2012 to 10.7 per cent, generating 21 per cent growth in underlying operating profit - 9 per cent excluding acquisitions - to £18.9m, from a modest increase in sales. Videocom did best. Of course, Haigh-Farr and CC helped, but there was strong demand among Asian broadcasters, especially for high-definition kit, LED lighting and robotic camera pedestals. Vitec is already working with Al-Jazeera as it refits studios in Qatar, and major projects elsewhere in the Middle East and South Korea are in the pipeline.
Vitec's shares trade on 12 times forecast earnings, which looks undemanding compared with industrial stocks and broadcast-equipment companies generating similar gross margins. It now has a focused portfolio of businesses with strong brand names in exciting niche markets..........but as always dyor gl all
Admittedly, defence work is lumpy and orders from the US Department of Justice - worth $7.6m (£4.8m) last year - were much lower. Yet sales of wireless products for US state police helicopters still grew, ensuring divisional profits jumped 40 per cent to £8.4m on sales up 12 per cent to £74m. And Vitec's share price will respond well to news of US government-funded contracts when they come. And imaging - Vitec's photographic unit - is exciting. Organic sales grew 4 per cent, despite the problems at staging, and profits rose 8 per cent to £10.4m. More professional photographers are buying its equipment and amateur snappers love the new premium, Manfrotto Powerbrand products, driving market share gains in the US and Europe. Hiring broadcast equipment for Olympics coverage also proved lucrative for the much smaller services division, which will ship kit to the US for November's presidential election. There's plenty to drive Vitec's share price. Broadcast and video markets are expected to grow 7 per cent a year, and both the photographic and military sectors by 5 per cent. True, Vitec's bosses did not upgrade their full-year profits guidance when reporting half-year figures, but there is potential for an earnings surprise, given £10m of Olympics money is still to come, the US election and the sale of the staging division.
Vitec has put sophisticated cameras in some odd places, most recently London's Olympic swimming pool and the Big Brother house. Now, its antennas and telemetric systems have reached Mars, but its bosses have their feet firmly on the ground. So, after a big strategic push and strong results, Vitec's shares look worth buying. That Vitec got to the red planet at all is down to Haigh-Farr, a US company it bought in December. Its kit, which is fitted to the parachute cone of the Mars entry vehicle, beamed data to the boffins at NASA. Haigh-Farr makes miniaturised transmitters for military drones and guided missiles, too, and is already generating profits for Vitec. It's a similar story at Camera Corps (CC), which cost just £8m in April and sits within Vitec's Videocom division, which makes a living from broadcasters and selling to the military, aerospace and government sectors. CC has already chipped in £1.4m of revenue and operating profit of £0.3m, and will do more in the second half after supplying small remotely operated high-definition cameras for the Olympics. These are smart acquisitions, but management, led by chief executive Stephen Bird, is not afraid to sell, either. Clear-Com, an underperforming wireless audio equipment business, went in 2010 and offloading the low-margin staging business last month looks sensible. That operation lost £0.5m in the first half of 2012 after sales slumped by a third and its disposal will cost Vitec over £2m. Its disposal will help return profit margins to pre-recession levels this year. Mr Bird thinks margins in the mid-teens are achievable. They leapt 1.6 percentage points in the first half of 2012 to 10.7 per cent, generating 21 per cent growth in underlying operating profit - 9 per cent excluding acquisitions - to £18.9m, from a modest increase in sales. Videocom did best. Of course, Haigh-Farr and CC helped, but there was strong demand among Asian broadcasters, especially for high-definition kit, LED lighting and robotic camera pedestals. Vitec is already working with Al-Jazeera as it refits studios in Qatar, and major projects elsewhere in the Middle East and South Korea are in the pipeline.
Broker estimates put 2012 earnings per share (EPS) at 55.9p, up 9% from 51.4p in the previous year, with a further 6% gain forecast the following year to 59.4p. A prospective price/earnings (PE) multiple of 11.3 represents good value for money. A plump yield of 3.3% and 3.7% for 2012 and 2013 respectively bolsters the investment case.
Buy Vitec (VTC) as escalating demand for high definition and 3D broadcast technology should thrust the camera specialist higher. Revenues, including acquisitions, rose 2.7% year-on-year to £176.5 million, the company revealed in its half-year report (22 Aug). That helped to drive pre-tax profit 15.1% higher to £17.5 million. Its core Videocom arm, which provides equipment to broadcast and professional video markets, saw revenues jump 12.3% in January to June. This was a result of an increase in investment by the company's broadcast clients. Vitec's acquisition of Camera Corps earlier this year (11 Apr), whose remote-controlled camera systems are particularly useful in sports broadcasting, should complement the company's current offerings. Its core Videocom arm, which provides equipment to broadcast and professional video markets, saw revenues jump 12.3% in January to June. This was a result of an increase in investment by the company's broadcast clients. Vitec's acquisition of Camera Corps earlier this year (11 Apr), whose remote-controlled camera systems are particularly useful in sports broadcasting, should complement the company's current offerings.
Broadcast products group Vitec reported growth in profits and margins in the first half but said it was difficult to predict what the future held. Revenues in the six months to the end of June were up 2.7% to £176.5m. Profits came in at £17.5m, up 15.2% on the previous year, and the firm increased its interim dividend 6.3% to 8.5 pence per share. Growth in the firm's Broadcast & Video and Photographic businesses offset a poor performance from the Staging business - now sold - and significantly lower sales to the military, aerospace and government markets. Vitec recorded a net finance expense of £1.4m, £1m higher than last year, reflecting the higher levels of net debt mainly due to acquisitions that were funded using private placement debt facilities. "Although the macroeconomic environment remains uncertain and our order book visibility is limited, the Board's expectations for the full year remain unchanged," said Chief Executive Stephen Bird.
Outlook Although the macroeconomic environment remains uncertain and our order book visibility is limited, the Board's expectations for the full year remain unchanged.
Commenting on the results, Stephen Bird, Group Chief Executive, said: "Vitec has continued to perform well in the first half of the year with an increase in profitability and improvement in margins across all of our divisions." "Our core Broadcast business achieved an encouraging sales performance across the product range. In the Photographic market, we had good growth in sales of our Manfrotto Powerbrand product range with independent research showing that our products are continuing to gain meaningful market share. Despite a strong comparative period, our combined MAG activities made progress in line with our expectations including a pleasing performance from Haigh-Farr." "In line with the Group's strategy we are also pleased to have sold our loss-making Staging business since the half-year end which will enable us to focus on our core activities." "Although the macroeconomic environment remains uncertain and our order book visibility is limited, the Board's expectations for the full year remain unchanged."
Key points · 21.2% increase in operating profit* and 160 bps increase in margin to 10.7% · Sales into Broadcast & Video markets continue to grow · Photographic business makes further market share gains · MAG performing in-line with expectations; successful integration of Haigh-Farr · Acquisition of Camera Corps to complement our Broadcast activities · Disposal of the loss-making Staging business post half-year end · New five year £100 million revolving credit facility in place · Interim dividend increased 6.3% to 8.5 pence per share
http://www.investegate.co.uk/Article.aspx?id=201208220700055010K
N + 1 Brewin upgrades Vitec Group from hold to add.
http://www.investegate.co.uk/Article.aspx?id=201203010700464408Y
N+1 Brewin maintained its "add" rating for Vitec (VTC), with a target price of 670p. The video equipment manufacturer beat the broker's expectations for the 2011 financial year, with pre-tax profits of 33 million pounds against forecasts of 30.7 million pounds. Brewin sees considerable room for growth in 2012, with its Powerbrand division expected to reach profitability and a boost expected from the London Olympics. However, the broker also warned of potentially increased interest costs due to refinancing operations and higher debt levels. Shares in Vitec dropped by 11.75p to 622.25p.
N+1 Brewin upgrades Vitec Group from hold to buy, target price raised from 560p to 670p.
Recently formed N+1 Brewin (formerly Brewin Dolphin) raised its recommendation for Vitec (VTC) from "hold" to "buy" with an increased target price of 670p, from 560p. The broker said that the video equipment developer's shares have lagged behind the recent market rally, which it believes is unfair given the improved economic climate. N+1 Brewin approves of the group's exposure to the US, which accounts for around 50% of sales, and believes that the Olympics will boost sales of its products. Vitec shares grew 13p to 575p.
Vitec Group Buy 05-Oct-11 £25,000.00 Stephen Bird 5,000 @ 500.00p
Brewin Dolphin maintained its "hold" recommendation for Vitec (VTC), with a 560p target price. The broker says that the acquisition of Haigh-Farr for 36 million dollars (23.1 million pounds) will add significant scale to broadcasting and photographic company as it looks to enter the military and aerospace markets. Brewin also sees opportunities for further bolt on-acquisitions, but feels that the share price will be largely controlled by the macro environment in the short term
Brewin Dolphin reiterated a "buy" rating for Vitec (VTC), the supplier of a wide range of equipment and services to the broadcasting, entertainment and photographic industries, with a 750p target price. Following the announcement of recent finals and the acquisition of Lastolite, a photographic bolt on, the broker is upgrading its earnings per share forecast by 9% and 14% for 2011 and 2012, respectively. With that said, given the firm's strong balance sheet, Brewin said it sees scope for further, more substantial, acquisitions this year. Vitec shares lost 8.5p to 586.5p.
Arbuthnot reiterated its "strong buy" rating for Vitec Group (VTC), the broadcasting equipment supplier, with a 715p target price. The broker notes the group's "strong" trading update in which Vitec reported that pre-tax profits for 2010 will be ahead of consensus. Arbuthnot also notes the immediate resignation of Richard Cotton as finance director. Vitec shares lost 8.5p to 591.5p.
share seems to drop early in the year, then rise in late march/ april, so not at all worried about todays drop, results due early march, so i will be keen to top up at under 4.00, strong hold imo.
I have held this share for a while now and it just keeps on going up and up, it is in deed a very good company, come on Vitec lets break that 400 mark!!!
hi, does anyone, ANYONE watch this share, just got in earlier today, seems like an excellent company with excellent prospects of a much higher sp?? any thoughts, anyone??