Trading Statement

17 Jan 2008 07:00

Vislink PLC17 January 2008 17 January 2008 Vislink plc Pre close trading update The Group has had a strong year with increased operating profit and growth inunderlying sales and orders. The Board expects the Group's adjusted operatingprofit for 2007, being operating profit before the amortisation of acquiredintangibles, to be in line with market forecasts of £15.5 million (2006 - £14.3million) after absorbing the impact of foreign exchange on translation of £0.8million. Underlying orders received (note 1) were up 10% to £106 million (2006 - £96.4million). Underlying sales (note 2) increased by 7% to £101 million. Headlinesales were £98 million (2006 - £100.5 million). 2007 Trading Our UK business continues to grow in the international broadcast markets throughthe increased distribution of Link Research's High Definition wireless cameraproducts and Advent's growing share of the satellite news gathering market. TheUS broadcast market for digital electronic news-gathering products and servicescontinued to be strong for MRC, our US business. WTS, our recent acquisition hasmade a small contribution to the Group's profits, in line with expectations.Hernis, our Norwegian specialist marine safety and security business, has hadanother record year. 2008 Outlook The Group has started the year with an order book of £36 million (2006 - £34.7million). Hernis, with the continuing demand from investment by the globaloffshore and marine oil and gas markets expects good sales growth. The Group isalso confident of increased sales in the defence, law enforcement and securitymarkets as we capitalise on the investments made during 2007. Overall, sales growth is expected in 2008, although the weakness of the USdollar increases the costs of UK product shipments for the US market with someconsequent pressure on margins. Commenting, Ian Scott-Gall, Chief Executive said: "The Board is looking forwardto 2008 with confidence. We have a strong balance sheet and are looking tostrengthen the Group with suitable strategic acquisitions, through thedevelopment of the regional sales offices in the important Middle and Far Eastmarkets and through increased investment in research & development." - ENDS - Enquiries Ian Scott-Gall 01488 685500Chief Executive, Vislink plc James White 0207 796 4133Hudson Sandler Notes to Editors Vislink plc is a leading supplier of microwave radio and satellite transmissionproducts for the broadcast and security markets and of CCTV systems for the marine security market. The Group's website is www.vislink.com. Note 1: Underlying orders are defined as orders adjusted to 2006 foreignexchange rates (an adjustment of £5 million) and exclude orders associated withthe completed Venezuelan legacy contract of £nil (2006- £1.1 million). Note 2: Underlying sales are defined as sales adjusted to 2006 foreign exchangerates (an adjustment of £5 million) and exclude sales associated with thecompleted Venezuelan legacy contract of £2 million (2006 - £6.1 million). Note 3: Average exchange rates used to translate results are US$2.00 (2006 -$1.84) and Norwegian Krone 11.72 (2006 - Norwegian Krone 11.81) This information is provided by RNS The company news service from the London Stock Exchange