The Vitec Group PLC
12 January 2007
12 January 2007
The Vitec Group plc
2006 Trading Update
The Board of The Vitec Group plc ('Vitec') announces the following period-end
update on trading for the year to 31 December 2006.
2006 has been another strong year for Vitec. The Board expects results for the
year ended 31 December 2006 to be at the upper end of current market forecasts,
with sales expected to be around £220 million, some 13% ahead of 2005. Organic
revenue growth is expected to be 10% and growth from acquisitions 3%. Cash
generation remained good, and capex spending was increased during the year.
Photographic has benefited from the growing sales of digital SLR cameras and
from increased spending by professionals on lighting equipment. Revenue in
Broadcast Systems was lifted by the trend to High Definition (HD) programme
making. Broadcast Services saw a stable market, boosted in the first half by
successful contracts for the Winter Olympics, and is well positioned to gain
from the 2008 Beijing games. Both Photographic and Broadcast Systems have
benefited from the move of production to lower cost suppliers.
The Group expects to make further progress in 2007, with revenue growth
principally in Photographic. The recent acquisitions of Autoscript and Tomcat
Global are both trading well and Vitec continues to look for acquisitions that
complement its existing businesses and add further value for shareholders. The
Board is therefore confident in the Group's prospects.
Ends
Enquiries:
The Vitec Group, Tel: 020 8939 4650
Gareth Rhys Williams
Alastair Hewgill
Financial Dynamics, Tel: 020 7269 7121
Richard Mountain
Susanne Walker
Notes
1. The company will host a telephone conference for analysts at 8.15am today.
Please contact Elaine Ryman on 020 7269 7121 at Financial Dynamics for details.
2. The preliminary results will be released on 5 March 2007.
3. As previously stated, 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. After
hedging, the Group expects to see an adverse effect of some £0.7 million on
operating profit in 2006 compared to 2005 and, if current exchange rates
continue throughout 2007, an adverse impact of some £2 million on 2007 operating
profit compared to 2006.
4. Current market exchange rates: £1 = $1.30, £1 = €1.94, €1 = $1.49
5. 2006 average market exchange rates: £1 = $1.84, £1 = €1.47, €1 = $1.25
6. 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:
Photographic, Broadcast Systems and Broadcast Services. 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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