17 Nov 2015 07:00
17 November 2015
The Vitec Group plc
Trading Update
The Vitec Group plc ("Vitec" or the "Group"), the international provider of products and services for the Broadcast and Photographic markets, announces the following trading update for the period from 1 July 2015 to 31 October 2015.
Overall, trading since the half year results has been satisfactory. However, our markets remain challenging and, despite some signs of stabilisation, we are yet to see the anticipated recovery in our traditional markets. As a result, the Board now expects a small reduction from its previous expectations for the full year.
The Broadcast Division has continued to experience variable market conditions. Our higher technology product businesses are performing well, offsetting lower sales of large camera supports. The streamlining of certain activities with lower growth prospects, as outlined in our 2015 half year results announcement, is progressing in line with our plans. Management of this division has been reorganised with Matt Danilowicz (Chief Executive of the Broadcast Division) having left the Group and senior management now reporting directly to Stephen Bird, Group Chief Executive.
The Photographic Division continues to face challenging markets, particularly in the US, but we continue to see some signs of stabilisation after several years of decline. This is supported by recent CIPA data for global shipments of interchangeable lens cameras.
We are pleased to have appointed Caroline Thomson to the Board of the Company as a Non-Executive Director and Chairman of the Remuneration Committee. Caroline succeeds Carolyn Fairbairn, who stood down from the Board on 31 October 2015.
The Group remains in a sound financial position and the Board remains confident about the future growth prospects of the Group. Although the challenging market conditions look likely to continue into next year, in 2016 we will benefit from the Rio 2016 Olympics, a small net foreign exchange benefit and the impact of previously announced restructuring initiatives.
Vitec is scheduled to release its full year results announcement on 23 February 2016.
Enquiries:
The Vitec Group plc
Stephen Bird, Group Chief Executive
Paul Hayes, Group Finance Director
Telephone: 020 8332 4600
FTI Consulting
Nick Hasell / Susanne Yule
Telephone: 020 3727 1340
Notes:
1. Average foreign exchange rates in the period from January to October 2015: £1 = $1.54, £1 = €1.38, €1 = $1.11, £1 = Yen185
2. Average foreign exchange rates in 2014: £1 = $1.65, £1 = €1.24, €1 = $1.33, £1 = Yen174
3. The current consensus for Profit Before Tax (before restructuring costs and costs associated with acquired businesses) is £33.25 million: Investec £33.0 million; Arden Partners £33.5 million.
A Snapshot of The Vitec Group
Vitec is a global provider of premium branded products and services to the Broadcast and Photographic markets. Vitec is listed on the London Stock Exchange with 2014 revenue of £309.6 million.
The Group is organised in two Divisions:
The Broadcast Division designs, manufactures and distributes premium branded products for broadcasting, film and video production for broadcasters and independent content creators. It also provides premium services including equipment rental and technical solutions to TV production teams and film crews.
The Photographic Division designs, manufactures and distributes premium branded equipment and provides dedicated solutions to professional and non-professional image takers.
More information can be found at: www.vitecgroup.com.
This announcement contains forward-looking statements with respect to the financial condition, performance, position, strategy, results and plans of The Vitec Group plc based on Management's current expectations or beliefs as well as assumptions about future events. These forward-looking statements are not guarantees of future performance. Undue reliance should not be placed on forward-looking statements because, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. The Group undertakes no obligation to publically revise or update any forward-looking statements or adjust them for future events or developments. Nothing in this announcement should be construed as a profit forecast.