Trading Statement

Vislink PLC 10 January 2002 10 January 2002 Vislink plc Trading Statement Vislink wishes to report that the two large contracts referred to in the interim statement were only received, together with their initial deposits, by the UK Broadcast businesses in late December 2001 and therefore they will not make their expected fourth quarter contribution to the results for the year ended 31 December 2001. This delay has resulted in a shift of some £4m of sales into 2002 from anticipated sales for 2001. This will impact on profits for the year ended 31 December 2001 which we now expect to be below the market's consensus for normalised pre-tax profits, but ahead of last year's £ 2.35m normalised pre-tax profits (being pre-tax profit before goodwill and exceptional items). The Group's order inflow for the year ended 31 December 2001 was £80.8m, an increase of 28% over the previous year's £63.1m. The outstanding order book has increased to £20.9m at 31 December 2001 compared with £17.6m at 31 December 2000, which will give the Group a good start to the new year. In the USA, MRC our Broadcast business and also both the larger Video Division businesses, Hernis (Norway) and American Auto-matrix (USA), have performed in line with expectations. The Group's cash balance at 31st December 2001 was £3.5m. The Group's net debt position has reduced to below £10m at 31 December 2001 (2000- £11.8m). The preliminary announcement of the full year results to December 2001 will be made at the end of March 2002. The sales cycle continues to be lengthy, particularly on the larger contracts within the Broadcast Division. However, with the current level of the order book and the continuing investments in product development, the Board considers the prospects for 2002 to be encouraging in today's market conditions. - Ends - For further information on 10 January 2002, please contact: Ian Scott-Gall 01488 685500 Chief Executive, Vislink plc James Trumper 01488 685500 Group Finance Director, Vislink plc Richard Dyett 020 7597 5970 Investec Henderson Crosthwaite
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