16 Nov 2017 07:00
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO THE SAME WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
16 November 2017
The Vitec Group plc
Trading outlook unchanged and new reporting structure
The Vitec Group plc ("Vitec" or "the Group"), the international provider of products and solutions for the broadcast and photographic markets, announces that recent trading has been in line with its expectations. It also announces that it is transitioning its structure from reporting under two to three Divisions from 1 January 2018.
Trading outlook
· Trading for the four months ended 31 October 2017 was in line with our expectations.
· The Photographic Division performed well and the market continues to show signs of recovery.
· In the Broadcast Division, our traditional business benefitted from sales of new products, including the Flowtech tripod, and, as expected, our US studio business has had a stronger second half to date, despite challenging market conditions. Our higher technology business continued to grow and the integration of RTMotion is going well.
· The Board's expectations for the year ending 31 December 2017 remain unchanged.
Portfolio refinement
The JOBY and Lowepro brands were acquired from the DayMen Group in September. The business is performing to plan and is being successfully integrated into the Photographic Division.
Recent changes in the portfolio, including the acquisitions of JOBY, Lowepro and RTMotion, and the disposals of Haigh-Farr and Vitec Broadcast Services ("Bexel"), position the Group well to deliver increased margins.
Net debt
Net debt at 31 October 2017 was £48.3 million (30 June 2017: £52.6 million) and reflects strong year-to-date cash generation and net proceeds from the disposal of Bexel in August. This was offset by £13.0 million of investment in acquisitions, and working capital related to the JOBY and Lowepro acquisition.
New three divisional reporting structure
For results from 1 January 2018, Vitec will report as three distinct Divisions - Imaging Solutions, Production Solutions and Creative Solutions - to reflect a changing customer base, and to give greater focus to the fast-growing Independent Content Creator Market. 2016 comparator information will be disclosed prior to the 2017 full year results announcement.
Full year results
Vitec is scheduled to release its full year results announcement on 22 February 2018.
-Ends
Enquiries:
The Vitec Group plc
Stephen Bird, Group Chief Executive
Kath Kearney-Croft, Group Finance Director
Telephone: 020 8332 4600
MHP Communications
Tim Rowntree
Ollie Hoare
Telephone: 020 3128 8771
Notes:
1. Average foreign exchange rates in the period from January to October 2017: £1 = $1.28, £1 = €1.15, €1 = $1.12, £1 = Yen 144
2. Average foreign exchange rates in 2016: £1 = $1.35, £1 = €1.22, €1 = $1.10, £1 = Yen 147
3. Nothing in this announcement should be construed as a profit forecast
A Snapshot of The Vitec Group
Vitec is a leading global provider of premium branded products and solutions to the fast changing and growing "image capture and sharing" market.
Vitec's customers include broadcasters, independent content creators, photographers and enterprises, and our activities comprise: design, manufacture and distribution of high performance products and solutions including camera supports, wireless systems, robotic camera systems, prompters, LED lights, mobile power, monitors and bags.
We employ around 1,700 people across the world in ten different countries and are organised in two Divisions: Broadcast and Photographic.
The Vitec Group plc is listed on the London Stock Exchange with 2016 revenue of £376.2 million.
More information can be found at: www.vitecgroup.com
LEI number: 2138007H5DQ4X8YOCF14