(Alliance News) - Vitec Group PLC hiked its interim dividend Thursday after revenue edged higher in a tough market, though profit fell on one-off costs.
For the six months ended June, pretax profit narrowed 16% to GBP16.6 million despite revenue rising 0.5% to GBP184.2 million.
Profit performance was hurt by a rise in acquisition-related charges to GBP6.9 million from GBP4.8 million the year prior as well as finance costs more than doubling to GBP2.3 million.
This was after net debt more than doubled to GBP108.4 million from GBP43.0 million the year before.
Vitec - which makes photography and video products such as autocues and camera supports - proposed a 12.3 pence per share interim dividend, up 7.0% from 11.5p the year prior.
"I am pleased with Vitec's half-year performance, where we delivered results in line with expectations despite some challenges," Chief Executive Stephen Bird said.
"The integration of Amimon is complete and I am excited about the opportunity to grow our wireless video capabilities, particularly in the broadcast sports market," Bird added. "Imaging Solutions continued to outperform a disrupted market through expanding into adjacent market segments, and is transitioning to an e-commerce business model to support future growth."
In November 2018, Vitec bought chipsets maker Amimon Inc for USD55.0 million in cash.
"Over the last three years, the group has continued to make progress executing its strategy to drive organic growth, improve margins and make value-adding acquisitions," Bird continued. "We also continue to look for further opportunities to add to our product portfolio."
"Vitec is in good shape and is increasingly exposed to more growth segments of the 'image capture and content creation' market," Bird said. "We are pleased to confirm our outlook for the current year is unchanged, whilst we remain mindful of geopolitical challenges and FX movements. Notwithstanding these uncertainties, we continue to expect a strong 2020."
Shares in Vitec were 0.9% lower at 1,105.00 pence in London on Thursday.