Last checked at 18 May 2011 07:00
Vislink plc
Interim Management Statement
18 May 2011
Vislink plc ("The Group"), the global technology business specialising in secure communications products and services for the News & Entertainment and Law Enforcement & Public Safety markets, today publishes a trading update in respect of the financial period ending 17 May 2011.
The Group traded in line with expectations for the quarter ended 31 March 2011. We have seen order intake growth compared to the first quarter of 2010; this has been led by increased demand for our broadcast products in Asia and South America, which remain important strategic markets for the Group. The previously announced cost reduction programme has assisted in reducing total operating costs for the business by almost 20% compared to the first quarter of 2010. Additionally margins are improving.
The Group held net cash of £16.7 million at 31 March 2011 (31 December 2010: net cash of £22.2 million). Since 31 March the Group has returned £5.0 million of cash to shareholders through its Tender Offer and received the remaining £2.9 million of the consideration from the sale of Hernis.
John Hawkins, who assumed the role of interim CEO on 1 April 2010, is undertaking a full review of the business that is focused on returning the Group to profitable growth by the end of 2011. This review will include an assessment of growth opportunities and technology drivers.
The Board anticipates that the outcome for the first half of the year will be a trading loss albeit below that of the first half of 2010. The Group expects to announce its Interim Results on 31 August 2011.
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For further information, please contact:
John Hawkins, Chief Executive and Chairman Elect +44 (0) 14 88 68 55 00
James Trumper, Group Finance Director +44 (0) 14 88 68 55 00
Charlie Jack, Hudson Sandler +44 (0) 20 77 96 41 33
About Vislink plc
The Vislink Group is strategically focussed on providing secure communication technologies to customers in its chosen markets. We specialise in wireless, video and IP technologies together with the supporting management systems. We have two international business units organised to serve its customers in News & Entertainment and Law Enforcement & Public Safety markets. With offices in the UK, USA, Dubai, and Singapore we employ over 200 people worldwide and have net assets in excess of £50 million. Our products include the design and manufacture of microwave radio, satellite transmission, wireless camera and marine CCTV systems; our manufacturing operations are in the UK and the USA.
Forward looking statements
Certain statements in this report are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. The Group undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.