The Vitec Group PLC
19 July 2006
19 July 2006
The Vitec Group plc
Period end trading update
The Board of The Vitec Group plc ('Vitec') announces the following period-end
update on trading for the six months to 30 June 2006.
Current trading
Trading for the first six months of 2006 has been very strong, with sales
approximately 19% higher than in the first half of 2005 (14% higher before
acquisitions and favourable foreign exchange) and profit before significant
items and tax considerably ahead. The Board continues to be optimistic about
the prospects for the year.
Divisional performance
In Photographic we have seen continued increased demand, particularly in the US.
Sales growth for our lighting supports has also been very positive, and camera
support sales continue to be underpinned by the strong demand for digital SLR
cameras.
In Broadcast Systems, Camera Support's sales have risen as our customers have
increased their capital spending, led by a further increase in sales of studio
pedestals. Broadcasters' spending on production equipment has been stimulated
by the adoption of High Definition programming. Revenue growth in our
Communications and Portable power businesses has been less marked.
In Broadcast Services, US rental demand was in line with expectations. We
benefited from the two major sporting events, with an unexpectedly strong Turin
Winter Olympics and a modest contribution from the football World Cup in
Germany. There are no such major events taking place in the second half of
2006.
- Ends -
Enquiries:
The Vitec Group plc
Gareth Rhys Williams Telephone: 020 8939 4650
Financial Dynamics
Susanne Walker / Richard Mountain Telephone: 020 7269 7121
Notes
1. Vitec will host a telephone conference for analysts at 8.15am today.
Please contact Susanne Walker at Financial Dynamics for dial-in details.
2. The interim results are expected to be released on 4 September 2006, in
accordance with International Financial Reporting Standards.
3. 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
stronger in the first half of 2006 compared to the first half of 2005,
which generated a positive £0.3m effect in the first half of 2006, after
hedging. If the dollar stays at current levels, we estimate there will be
an adverse foreign exchange effect of some £0.5m in the second half of 2006
compared to the same period in 2005.
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.
The Vitec Group plc 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. The Vitec Group is a major force in its chosen
specialised fields. More information can be found at: http://www.vitecgroup.com.
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