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17 May 2010 07:00
17 May 2010
The Vitec Group plc
Interim Management Statement
Vitec, the international provider of products and services for the broadcast, photographic, MAG (military, aerospace and government) and entertainment industries, announces the following Interim Management Statement for the period from 1 January 2010 to 16 May 2010.
Demand in Imaging and Staging has strengthened during the period, driven in particular by an improving photographic market.
Videocom has seen a steady improvement in demand in its markets and had a very successful NAB show, where many new products were launched and well received. RF Extreme has been rebranded Integrated Microwave Technologies (IMT) and has successfully secured further MAG business, including the first order under Auction 66, announced on 6 April 2010. The Clear-Com business was sold on 1 April 2010 to HM Electronics for consideration of up to £8.7million (subject to closing working capital adjustments).
Services has had a stronger start to the year than expected, supported by a significant presence at the Vancouver Olympic Games and stronger core Broadcast markets.
At 30 April 2010, Group net debt was £29.5 million compared to £40.6 million at 31 December 2009, including the initial proceeds of £8.0 million from the Clear-Com disposal. The Group has a committed multi-currency loan facility of £125 million, which expires in August 2013, and was utilising £39.2 million of the facility as at 30 April 2010. As a result of the disposal of Clear-Com referred to above and the consequent reduction in losses available for group relief, we now expect the tax rate for the year to be 34% rather than the 30% previously indicated.
Trading in the period has been encouraging, helped to some extent by favourable foreign exchange rates. Whilst the economic and foreign exchange environment for the balance of the year remains uncertain, and our order book visibility is limited, given the stronger demand to date and the full benefit in 2010 of the cost reductions implemented in 2009, the Board currently expects profits for the year to be at the top end of the range of market expectations (see note 3).
Our interim results announcement will be on 24 August 2010.
ENDS
Enquiries:
The Vitec Group plc
Stephen Bird, Group Chief Executive Telephone: 020 8939 4650
Richard Cotton, Group Finance Director
Financial Dynamics
Susanne Yule / Sophie Kernon Telephone: 020 7269 7291
Notes:
1. Average foreign exchange rates in the period January to April 2010: £1 = $1.56, £1 = €1.14, €1 = $1.38.
2. Average foreign exchange rates in 2009: £1 = $1.56, £1 = €1.12, €1 = $1.40.
3. Market expectations for 2010 PBT range from £20.4 million to £23.4 million.
Vitec is an international Group principally serving customers in the broadcast, photographic and military, aerospace and government (MAG) markets. Listed on the London Stock Exchange with 2009 revenue of £315 million, Vitec is based on strong, well known, premium brands on which its customers worldwide rely. Vitec is organised in three divisions: Imaging & Staging, Videocom and Services.
Imaging & Staging designs, manufactures and distributes equipment and accessories for photography, video and events.
Videocom designs and distributes systems and products used in broadcasting and live entertainment, film and video production and MAG.
Services provides equipment rental, workflow design and technical support for camera, video, audio, fibre optic and wireless technology used by TV production teams and film crews.
More information can be found at: www.vitecgroup.com.
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