12 Nov 2014 07:00
12 November 2014
The Vitec Group plc
Interim Management Statement
The Vitec Group plc ("Vitec" or the "Group"), the international provider of products and services for Broadcast & Video and Photographic markets, announces the following Interim Management Statement for the period from 1 July 2014 to 11 November 2014. The comments on trading relate to the period from 1 July 2014 to 31 October 2014.
The Group's trading since the Half Year results has been in line with our forecast and we remain on track to meet the Board's expectations for the Full Year.
The Videocom Division performed well in continued variable markets, reflecting the timing of major contracts, a strong performance by Teradek but weakness in European and Middle Eastern markets. We are making good progress with the integration of Autocue Group Limited following completion of its acquisition in October 2014. In early November, we exited from the loss-making IMT business through the sale of its assets (see note 3).
The Imaging Division performed in line with our expectations in what remains a difficult photographic market. It continues to make good progress through the launch of new products which received positive feedback at Photokina, the international photography exhibition in Cologne.
The Services Division traded in line with our expectations.
At 31 October 2014, Group net debt was £77.8 million, after payment of the interim dividend of £4.1 million and net cash outflow of £6.1 million relating to the Autocue acquisition. This compares to net debt of £68.0 million at 30 June 2014. The Group has made six successful acquisitions in the last four years and continues to review further value adding additions to the Group's activities.
Vitec is scheduled to release its full year results announcement on 25 February 2015.
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 1234
Notes:
1. Average foreign exchange rates in the period from January to October 2014: £1 = $1.67, £1 = €1.24, €1 = $1.35, £1 = Yen172
2. Average foreign exchange rates in 2013: £1 = $1.56, £1 = €1.17, €1 = $1.33, £1 = Yen152
3. The IMT exit costs are anticipated to be in the region of £4.0 million which compares favourably with the £5.5 million initial estimate presented with the half year results. The cash-flow impact has also improved to an estimated net cash-outflow of £3.5 million.
A Snapshot of The Vitec Group
Vitec is an international Group principally serving customers in the Broadcast & Video and Photographic markets. Listed on the London Stock Exchange with 2013 revenue of £315.4 million, Vitec is based on strong, well known, premium brands on which its customers worldwide rely. Vitec is organised in three Divisions: Videocom, Imaging and Services.
Videocom designs, manufactures and distributes systems and products used in broadcasting and live entertainment, film and video production.
Imaging designs, manufactures and distributes equipment and accessories for photography and video.
Services provides equipment rental, workflow design and technical support to TV production teams and film crews.
More information can be found at: www.vitecgroup.com.
This announcement contains forward-looking statements that are based on management's current expectations or beliefs as well as assumptions about future events. These are subject to risk factors associated with, amongst other things, the economic and business circumstances occurring from time to time in the countries and sectors in which the Group operates. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a wide range of variables which could cause actual results, and Vitec's plans and objectives, to differ materially from those currently anticipated or implied in the forward-looking statements. Investors should not place undue reliance on any such statements. Nothing in this announcement should be construed as a profit forecast.