9 Nov 2016 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.
9 November 2016
The Vitec Group plc
Trading Update
Full year outlook upgraded, strong cash generation
Trading Performance
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 2016 to 31 October 2016.
The results since the half year end have been slightly ahead of expectations, with trading benefiting from movements in foreign exchange rates.
Our higher technology broadcast businesses are continuing to grow, offsetting lower sales of our more traditional products. As expected, we benefited from the Rio 2016 Olympics and previous restructuring activities. Haigh-Farr, our antennas business, continues to perform significantly below prior year levels.
Wooden Camera, a leading provider of high-quality, essential camera accessories, was acquired in September 2016. It is performing to plan and is being successfully integrated into the Group's activities.
The Photographic Division has traded in line with our expectations and is out-performing the market.
Overall, the Board now expects Vitec's full year result to be slightly ahead of current market consensus1.
Net Debt
Vitec continues to operate with a strong balance sheet and deliver good cash generation.
Net debt at 31 October was £91.1 million (31 December 2015: £76.3 million) and reflects strong year-to-date cash generation offset by £20.7 million of investments in acquisitions and a £13.5 million negative impact from period-end foreign exchange movements.
Capital Markets Event: Realising Growth in a Changing Market
On Thursday 10 November, Stephen Bird, Group Chief Executive, alongside other members of the Leadership Team will be presenting how Vitec has built a platform to deliver growth in a changing market at a capital markets event in London.
The presentation will demonstrate how the Group is successfully transforming itself and focussing on growth opportunities.
Stephen Bird commented that:
"Vitec has made strong strategic progress, significantly transforming the Group in recent years. Our focus has been on continuing to improve the operational performance of the business whilst also expanding our addressable markets and broadening our capabilities and customer base in the exciting image capture and sharing market."
The presentation will include how Vitec:
1) Operates in the exciting global image capture and sharing market which is expected to grow.
2) Has successfully expanded into new markets, geographies and technologies despite our traditional markets remaining challenging. Higher technology now represents more than 40% of the Broadcast division's product revenue.
3) Has demonstrated that it can grow revenue from new higher-growth areas whilst maximising core markets.
4) Will take advantage of market changes from its unique heritage and the credibility of its established premium brands.
5) Will drive initiatives to grow margins and deliver strong cash-flows while responding with speed and agility to changing technology and customer requirements.
As well as hearing from some of the Leadership Team there will be demonstrations of new product developments.
Copies of the presentations will be made available on the Group website after the seminar. No new financial information will be disclosed at the event.
Full Year Results
Vitec is scheduled to release its full year results announcement on 21 February 2017.
Enquiries:
The Vitec Group plc
Stephen Bird, Group Chief Executive
Paul Hayes, Group Finance Director
Telephone: 020 8332 4600
MHP Communications
Tim Rowntree
Jamie Ricketts
Ollie Hoare
Telephone: 020 3128 8100
Notes:
1. The current market forecasts for Profit Before Tax (before restructuring costs and charges associated with acquisition of businesses) are in the range of £34.8 million to £35.4 million with a consensus of £35.1 million.
2. Average foreign exchange rates in the period from January to October 2016: £1 = $1.37, £1 = €1.23, €1 = $1.11, £1 = Yen149
3. Average foreign exchange rates in 2015: £1 = $1.53, £1 = €1.38, €1 = $1.11, £1 = Yen185
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 2015 revenue of £317.8 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, film crews and corporate enterprises.
The Photographic Division designs, manufactures and distributes premium branded equipment for photographic and video cameras 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.