Period end trading update
The Vitec Group PLC
18 July 2007
18 July 2007
The Vitec Group plc
Period end trading update
The Board of The Vitec Group plc ('Vitec' or the 'Group') announces the
following update on trading for the six months to 30 June 2007.
Current trading
Sales in the period were approximately 17% higher than in the first half of
2006, which had started more slowly. Before acquisitions and adverse foreign
exchange, sales were up around 14%. Given the operational gearing of the Group,
a strong trading performance is expected for the first half of the year.
Divisional performance
In Imaging & Staging we saw overall sales growth of approximately 30%. Progress
in Imaging has been very positive across our range of products, with camera
support and bag sales increasing on the back of the growth in global sales of
digital SLR cameras. Encouragingly, recent market estimates show digital SLR
camera sales volumes continuing to grow until 2011. The Staging business saw
some organic growth in the half, but doubled in size through the acquisition of
Tomcat, where a number of projects are now expected in the second half.
In Broadcast Systems, sales grew around 13%, with order intake remaining strong.
RF Systems, acquired at the end of May 2007, had a good first month within the
Group, with the integration plan running well. First half performance was
underpinned by broadcasters updating their equipment within the ongoing move to
High Definition, and the performance of Autoscript, acquired in October 2006.
The Group's emphasis on product innovation has resulted in considerable further
interest at recent trade shows.
In Broadcast Services, US rental demand was in line with expectations. Unlike
2006, the first half did not benefit from any major sporting events but,
nevertheless, US dollar sales were flat, with reported sterling sales down
approximately 10%. Improved operating performance has reduced the effect of the
more adverse mix.
As in previous years, the Group has seen a seasonal build of inventory before
the summer holiday period which is expected to reverse by year end.
Outlook
The Board's positive views on the prospects for the full year remain unchanged.
Whilst the focus is on the successful integration of RF Systems, the Group
continues to seek further value enhancing acquisition opportunities.
Enquiries:
The Vitec Group plc
Gareth Rhys Williams / Alastair Hewgill Telephone: 020 8939 4650
Financial Dynamics
Susanne Yule / Richard Mountain Telephone: 020 7269 7121
Notes
1. The interim results are expected to be released on 3 September 2007.
2. Whilst Vitec has significant production and sourcing in US dollars and has
hedging arrangements in place, movements in the $/£ and, particularly, $/€
rates can have a significant impact on reported results. The US dollar was
weaker in the first half of 2007 compared to the first half of 2006, which
generated an adverse £2.0m effect in the first half of 2007, after hedging.
If the dollar stays at current levels, we estimate there will be an adverse
foreign exchange effect of some £1.2m in the second half of 2007 compared
to the same period in 2006.
3. Current market exchange rates used in this statement: £1 = $2.05,
£1 = €1.49, €1 = $1.38.
4. Statements made in this announcement that look forward in time or that
express management's beliefs, expectations or estimates regarding future
occurrences are 'forward-looking statements' within the meaning of the
United States federal securities laws. These forward-looking statements
reflect Vitec's current expectations concerning future events and actual
results may differ materially from current expectations or historical
results.
5. The Vitec Group supplies a wide range of equipment and services to the
broadcasting, entertainment and photographic industries. Its products are
distributed in nearly 100 countries, either through dealerships or direct
to the end user or corporate customer. Vitec is based on strong, well
known, premium brands that professionals rely on. Vitec is organised in
three divisions: Imaging & Staging, Broadcast Systems and Broadcast
Services. More information can be found at: http://www.vitecgroup.com.
This information is provided by RNS
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