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15 May 2008 07:00
15 May 2008
The Vitec Group plc
Interim Management Statement
The Vitec Group plc, the leading supplier of products and services to the worldwide media sector, issues the following interim management statement in respect of the four months ending 30 April 2008.
Trading
The Group continued to enjoy a healthy level of order intake, with an order book ahead of the same period last year.
Group revenue was up on the prior year, with modest organic constant currency growth and a significant contribution from the RF Systems acquisition made last year. We have seen a strong performance from the Broadcast Systems division, benefiting from the run up to the Olympics and from the ongoing upgrades to High Definition programming. Imaging and Staging has seen growth, despite the lack of any major projects in Staging.
Group operating profit was ahead of last year, with margins slightly down on the same period in 2007, due to a different divisional mix, ongoing investment and adverse foreign exchange.
Financial position
Net debt at 30 April 2008 of £47.1 million compares with £38.4 million at 31 December 2007, principally due to expected seasonal increases in working capital, the introduction of a new logistics centre in Europe which will reduce our lead time when supplying local distributors, and an earnout payment in respect of a previous acquisition. With committed facilities of £100 million, we have sufficient headroom to finance our continued growth and the Group remains in a sound financial position.
The Group has recently bought 150,000 shares into treasury, to hedge future requirements of the Group's incentive schemes.
Outlook for 2008
The Board's view on the potential outlook for 2008 is unchanged from that at the time of the full year results in March 2008: "Overall, the Board looks forward to continued progress in 2008".
We continue to look for value-adding acquisitions that complement our existing range of products or routes to market.
Vitec will make a post-close announcement on 16 July 2008 and announce its half year results on 27 August.
Ends
Enquiries:
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The Vitec Group plc |
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Gareth Rhys Williams / Alastair Hewgill |
Telephone: 020 8939 4650 |
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Financial Dynamics |
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Richard Mountain / Sophie Kernon |
Telephone: 020 7269 7121 |
Notes
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1. |
The company's AGM will be on Tuesday 27 May at Financial Dynamics at 2.30pm. |
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2. |
This statement is based on information sourced from management estimates. |
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3. |
Whilst Vitec has significant production and sourcing in US dollars and has hedging arrangements in place, movements in the $/£ and, particularly, $/€ rates can have a significant impact on reported results. After hedging, the Group estimates there would be an adverse effect of some £1.5 million on operating profit in 2008 compared to 2007 (compared to the guidance of £1.9 million adverse effect given at the results presentation in March), if current exchange rates continue throughout 2008. |
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4. |
Current market exchange rates: £1 = $1.95 £1 = €1.26, €1 = $1.55 |
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5. |
2007 average market exchange rates: £1 = $2.00, £1 = €1.47, €1 = $1.37 |
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6. |
Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect Vitec's current expectations concerning future events and actual results may differ materially from current expectations or historical results. |
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7. |
Vitec is an international Group, principally serving customers in the worldwide media sector with products and services for the broadcast, entertainment and photographic industries. Vitec is based on strong, well known, premium brands that professionals rely on. Vitec is organised in three divisions: Imaging & Staging, Broadcast Systems and Broadcast Services. More information can be found at: www.vitecgroup.com. |
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