The Vitec Group PLC
12 January 2006
The Vitec Group plc - 2005 Trading Statement
12 January 2006
The Board currently expects to report profit before tax, before significant
items and goodwill impairment, for the year ended 31 December 2005, slightly
ahead of the upper end of current market forecasts. 2005 sales are expected to
be some 5% ahead of 2004, which had received a boost from the Olympics, in both
constant currency and £ sterling terms. Cash generation remained good.
We continued to see growth in our Photographic division. Sales of our products
were helped by the underlying market growth for digital SLR cameras,
particularly in the USA, and by the recent acquisition of Kata (which continues
to perform well). In Broadcast Systems, the new products launched into the
market and the uptake of High Definition TV, together with sales of equipment
for the upcoming World Cup, lifted revenue. Broadcast Services sales were down
on 2004 (which had seen good growth from the 2004 Olympics and Presidential
elections).
The Group is targeting further organic revenue growth in 2006 and will also
benefit from a full year of sales from Kata. Vitec continues to look for
acquisitions which will add value for shareholders and recently announced the
exchange of contracts for the purchase of Petrol, a manufacturer of broadcast
camera bags, which is expected to complete this month.
Ends
Enquiries:
The Vitec Group, Tel: 020 8939 4650
Gareth Rhys Williams
Alastair Hewgill
Financial Dynamics, Tel: 020 7269 7291
Richard Mountain
Notes
1. The company will host a telephone conference for analysts at 8.00am today.
Please contact Claire Bott on 020 7269 7291 at Financial Dynamics for details.
2. The preliminary results, in accordance with International Financial Reporting
Standards, are expected to be released on 6 March 2006.
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. If current exchange rates
continue throughout 2006, the Group estimates that there will be a neutral
transactional impact and a £0.5 million favourable translational impact on 2006
operating profit compared to 2005.
4. Current market exchange rates: £1 = $1.77, £1 = €1.46, €1 = $1.21
5. 2005 average market exchange rates: £1 = $1.82, £1 = €1.46, €1 = $1.24
6. 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.
This information is provided by RNS
The company news service from the London Stock Exchange
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