VTC.L Regulatory News (VTC)

18 Jul 2007 07:00

The Vitec Group PLC18 July 2007 18 July 2007 The Vitec Group plc Period end trading update The Board of The Vitec Group plc ("Vitec" or the "Group") announces thefollowing update on trading for the six months to 30 June 2007. Current trading Sales in the period were approximately 17% higher than in the first half of2006, which had started more slowly. Before acquisitions and adverse foreignexchange, sales were up around 14%. Given the operational gearing of the Group,a strong trading performance is expected for the first half of the year. Divisional performance In Imaging & Staging we saw overall sales growth of approximately 30%. Progressin Imaging has been very positive across our range of products, with camerasupport and bag sales increasing on the back of the growth in global sales ofdigital SLR cameras. Encouragingly, recent market estimates show digital SLRcamera sales volumes continuing to grow until 2011. The Staging business sawsome organic growth in the half, but doubled in size through the acquisition ofTomcat, where a number of projects are now expected in the second half. In Broadcast Systems, sales grew around 13%, with order intake remaining strong.RF Systems, acquired at the end of May 2007, had a good first month within theGroup, with the integration plan running well. First half performance wasunderpinned by broadcasters updating their equipment within the ongoing move toHigh Definition, and the performance of Autoscript, acquired in October 2006.The Group's emphasis on product innovation has resulted in considerable furtherinterest at recent trade shows. In Broadcast Services, US rental demand was in line with expectations. Unlike2006, the first half did not benefit from any major sporting events but,nevertheless, US dollar sales were flat, with reported sterling sales downapproximately 10%. Improved operating performance has reduced the effect of themore adverse mix. As in previous years, the Group has seen a seasonal build of inventory beforethe summer holiday period which is expected to reverse by year end. Outlook The Board's positive views on the prospects for the full year remain unchanged.Whilst the focus is on the successful integration of RF Systems, the Groupcontinues to seek further value enhancing acquisition opportunities. Enquiries: The Vitec Group plc Gareth Rhys Williams / Alastair Hewgill Telephone: 020 8939 4650 Financial Dynamics Susanne Yule / Richard Mountain Telephone: 020 7269 7121 Notes 1. The interim results are expected to be released on 3 September 2007. 2. 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. The US dollar was weaker in the first half of 2007 compared to the first half of 2006, which generated an adverse £2.0m effect in the first half of 2007, after hedging. If the dollar stays at current levels, we estimate there will be an adverse foreign exchange effect of some £1.2m in the second half of 2007 compared to the same period in 2006. 3. Current market exchange rates used in this statement: £1 = $2.05, £1 = €1.49, €1 = $1.38. 4. 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. 5. The Vitec Group supplies a wide range of equipment and services to the broadcasting, entertainment and photographic industries. Its products are distributed in nearly 100 countries, either through dealerships or direct to the end user or corporate customer. 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: http://www.vitecgroup.com. This information is provided by RNS The company news service from the London Stock Exchange