Interim Management Statement

RNS Number : 2568S

The Vitec Group PLC

17 November 2011

 



17 November 2011                                                                                                                 

The Vitec Group plc

Interim Management Statement

The Vitec Group plc ("Vitec" or the "Group"), the international provider of products and services for the broadcast, photographic, and MAG (military, aerospace and government) markets, announces the following Interim Management Statement for the period from 1 July to 16 November 2011.

Trading in the period since the Half Year results has remained encouraging. Whilst the business environment continues to be uncertain and our order visibility limited, the Board's expectations for the full year remain unchanged.

The Broadcast and Video market has continued to see a steady improvement in demand. Our core broadcast business, which forms the majority of our Videocom division, has performed strongly across the product range. Our Services division, which also serves this market, continues to focus on larger customers and is trading in line with expectations.

The Imaging & Staging division which mainly serves the photographic market is also performing well and has benefitted from the Lastolite acquisition. The new Manfrotto Powerbrand products in supports, bags and mini LED lighting have been well received by consumer retail channels. Staging is performing in line with expectations.

The MAG market is addressed through our IMT business and is part of our Videocom division. IMT is a relatively new entrant to this market and achieved encouraging sales in the first half of the year into the surveillance market. We continue to await follow on orders. The order intake for IMT continues to be difficult to predict and the outlook for the business depends on how successful we are in securing additional US Government funded contracts and the timing of new tenders.

As announced on 30 September 2011, Vitec has agreed to acquire the entire share capital of Haigh-Farr Inc. for a cash consideration of up to $36 million. Haigh Farr Inc. is a world leader in the design and development of flight-body antennae for simple and sophisticated communication applications. The acquisition is subject to regulatory approvals in the United States and is anticipated to be completed in early December 2011.

At 31 October 2011, Group net debt was £38.5 million compared to £40.5 million at 30 June 2011. The Group has a £100 million committed multi-currency loan facility, which expires in August 2013, and $25 million drawn on a Private Placement shelf facility of $75 million with Pricoa Capital Group Limited.

Enquiries:

The Vitec Group plc                                       

Stephen Bird, Group Chief Executive                                        

Paul Hayes, Group Finance Director

Telephone: [phone]

FTI Consulting

Nick Hasell / Sophie Moate

Telephone: [phone]

Notes:

1.   Average foreign exchange rates in the period January to October 2011: £1 = $1.61, £1 = €1.15, €1 = $1.40.

2.   2010 average foreign exchange rates: £1 = $1.55, £1 = €1.17, €1 = $1.33.

3.   Our full year results announcement will be on 1 March 2012.

Vitec is an international Group principally serving customers in the Broadcast and Video, Photographic and Military, Aerospace and Government (MAG) markets. Listed on the London Stock Exchange with 2010 revenue of £310 million, Vitec is based on strong, well known, premium brands on which its customers worldwide rely.

Vitec is organised into three divisions: Videocom, Imaging & Staging, and Services. Videocom designs and distributes systems and products used in broadcasting and live entertainment, film and video production and MAG. Imaging & Staging designs, manufactures and distributes equipment and accessories for photography, video and events. Services provides equipment rental, workflow design and technical support for camera, video, audio, fibre optic and wireless technology used by TV production teams and film crews.

More information can be found at: www.vitecgroup.com.

 

END

 

 

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