Vitec Interim Results

Vitec Group PLC
4 September 2000

                                       
                                Vitec Group plc
                                       
         Unaudited Interim Results for the six months to 30 June 2000

Vitec Group plc, the international supplier of equipment and services to the
broadcast, entertainment, photographic and retail markets, announces its
results for the six months to 30 June 2000.

                         2000                1999
Turnover                 £94.7m              £80.6m
Operating profit*        £18.8m              £17.7m
Pre-tax profit*          £17.3m              £17.4m
Headline EPS*             29.2p              24.7p
Dividend                   5.6p              4.9p

*pre goodwill amortisation

HIGHLIGHTS

- Turnover up 17 per cent to £94.7m
- Operating profit of £18.8m, an advance of 6 per cent
- Headline earnings ahead 18 per cent to 29.2p
- Good growth in broadcast and photographic markets
- Philip Cushing appointed Chief Executive

Commenting on the results, Alison Carnwath, Chairman said:

     'The Group has started the year well, reflecting an improvement in the
     Group's markets within the broadcast, photographic and entertainment
     industries.
     
     'The second half has begun encouragingly and we are confident this year
     will see the group moving ahead strongly.'
     

Enquiries

Vitec Group plc          Philip Cushing           01494 679 800
Financial Dynamics       Richard Mountain         020 7269 7249


Joint statement of the Chairman and Group Chief Executive


The Group has made a good start to the year.  The results for the first half
of 2000 represent improved performances from most of our businesses across the
world compared to 1999.  The improvement in the Group's markets within the
broadcast and entertainment industries in the second half of 1999 continued
throughout the first half of this year.  Our photographic businesses continued
to perform well.  However, there was some weakness in the retail display
business, which suffered from the lack of replacement orders from two large
customers in the USA. Despite this, Group turnover grew strongly.

Operating profit before goodwill amortisation increased 6 per cent to £18.8
million (1999 £17.7 million).  The strong pound in the period reduced reported
profits and, at constant exchange rates, the increase was 10 per cent.
Interest expense increased to £1.5 million (1999 £0.3 million) due to the
share buy-backs completed last year.  As a result, profit before tax was £17.0
million (1999 £17.2 million), however headline earnings per share increased 18
per cent to 29.2p (1999 24.7p), of this, approximately 9 per cent represented
the positive effect of the share buy-backs.  An interim dividend of 5.6p (1999
4.9p), an increase of 14 per cent will be paid on 1 December 2000.  The shares
will go ex-dividend on 30 October 2000.

Turnover increased 17 per cent to £94.7 million (1999 £80.6 million).  Of this
£14.1 million increase, £4.4 million was due to businesses acquired since the
beginning of 1999.  Gross margins rose overall, despite a fall in Retail
Display.  We continued to invest in the markets we serve and in new product
development.

Additional costs were, and continue to be, incurred in our continuous
improvement initiative, in developing our e-commerce strategy and in the
recruitment of senior executives, as we continue to strengthen the Group's
management resources.

Operating cash flow was £20.6 million (1999 £25.7 million) as working capital
grew to finance the higher level of business activity.  Free cash flow was
£6.1 million (1999 £11.7 million) and £7.3 million was spent on acquisitions,
leaving net debt of £28.9 million (1999 net cash £10.6 million).

The second half has begun encouragingly, with good order books in our
broadcasting and photographic businesses.  The longer term prospects for
Retail Display remain good, albeit current demand is weak.  We continue to
seek investment opportunities to increase the long -term growth potential of
the Group.


Alison Carnwath
Chairman


Philip Cushing
Group Chief Executive


Broadcast Camera Systems

Turnover increased 12 per cent to £31.5 million from £28.0 million in 1999.
Operating profit increased 20 per cent on the prior year, from £5.9 million to
£7.1 million.

Vinten enjoyed a successful first half after a tough year in 1999.  Further
business was gained for the Olympics Games and several large studio contracts
were completed for both manual and robotic solutions.  Sales to the Far East
were particularly improved and further inroads were made into the Japanese
market.  Gross margins improved through higher volumes and the impact of
continuous improvement actions.  Operating margins increased despite
significant additional investment in marketing, product development and in
staffing costs.

Sales growth was lower in the Americas than elsewhere but ahead of last year.
Autocam and lightweight products showed large increases, but studio and
outside broadcast equipment were more subdued.  Operating costs increased,
mainly because of higher investment in engineering for new product
development.

Sachtler's sales were well ahead and operating margins improved as a result of
these higher volumes.  Support products showed the biggest increases, whilst
sales of lighting products were more modest and studio suspension sales were
down.  Large gains were made in the USA, boosted by the presidential election
campaigns, and also in Latin America.  There was a strong recovery in
Sachtler's far-eastern markets, especially Korea and China, but a further
sales decline in Japan.  In Europe, significant increases were seen in the
southern and eastern regions, but elsewhere sales were lower.

Anton/Bauer built further on its excellent performance of 1999, with strong
growth in sales and profits.  Both the USA and international markets were
ahead, with particular successes from the HyTron 100 battery and charging
system, launched last year.


Photographic and Retail Display

Turnover for the division was £34.7 million (1999 £32.0 million), an increase
of 8 per cent. However, operating profit fell 15 per cent from £9.5 million to
£8.1 million, with a reduction in operating margin from 29.7 per cent to 23.3
per cent.

The photographic businesses continued to trade strongly, building further on
the considerable gains made throughout 1999.  All the Manfrotto companies
performed well and sales of lighting stands, tripods and heads increased
significantly.  Sales of lighting suspension products were down, but prospects
for new projects remain strong.  Manfrotto saw a continued resurgence in its
markets in South East Asia and the USA market remained strong.  Operating
margins fell slightly, due to higher aluminium prices, increases in operating
costs and higher product development expenditure.

In the USA, Bogen achieved significant increases in sales, with volume gains
in most product lines. Good cost controls further boosted operating profit.

Gitzo partly reversed its poor performance of last year with volume increases
in both turnover and operating profit.  High sales to the USA offset declines
elsewhere, particularly Japan, which remained weak.

The strong performance of the photographic business was offset by weakness in
Retail Display.  Sales volumes fell sharply because of the lack of orders from
two major customers in the USA.  Other areas of the business were buoyant and
further progress was made in the development of the european market.
Operating margins were well down on 1999, adversely impacted, not only by the
lower volumes, but also by higher material costs.


Communications and Audio

Turnover for the division was £10.9 million (1999 £7.4 million), an increase
of 47 per cent, and operating profit increased 57 per cent to £1.1 million
from £0.7 million.

The resurgence in Clear-Com's business, which commenced in the second half of
last year, continued with large increases in both the matrix and party line
product groups. Business activity in Clear-Com's international markets,
particularly the Far East, improved from the depressed levels seen last year.
In addition, the USA domestic market remained strong and demand for matrix
products was especially high.  Availability of manufacturing components
improved, resulting in better manufacturing efficiencies.  Operating margins
increased, despite higher costs, which rose largely in response to the
increased business. In May, Rick LeBlanc was appointed President of Clear-Com,
bringing a great deal of relevant electronics experience to Clear-Com and the
division.

Broadcast order intake at Drake Electronics was strong, particularly from
Germany and Scandinavia.  The non-broadcast business was disappointing, even
though weakness in simulation and live voice networks was somewhat offset by
successes in the air traffic control market. Overall, Drake performed strongly
and good increases in sales volumes were achieved.  Operating margins
increased after additional investment was made in order to strengthen the
company's marketing activities; notably in the non-broadcast business, and to
improve Drake's position in its domestic broadcast market.  Investment in new
product development also increased.

Vega's losses were larger than anticipated.  The focus of its activities
continues to be rebuilding its brand, including the development of the new
generation of its wireless intercom products.  Sales fell, as customers held
back orders, pending a major new product introduction in the second half.



Broadcast Services

Turnover was £17.6 million (1999 £13.2 million), an increase of 33 per cent.
Operating profit increased 56 per cent from £1.6 million to £2.5 million and
operating margins improved to 14.2 per cent from 12.1 per cent last year.  The
improvement in demand for broadcast product rental, which began in the last
quarter of 1999, continued this year.

In the video market, Bexel achieved strong increases in the revenues of its
existing businesses, with the first quarter particularly strong.  The major
task for Bexel in the first half was the integration of the Duke City Video
(DCV) acquisition.  DCV performed ahead of profit expectations, contributing
£2.6 million of turnover and £0.4 million of profit.  The acquisition greatly
strengthened Bexel's market position and capability in the large events field.
A plan has been introduced to improve utilisation of DCV's assets to Bexel's
levels.

In the audio sector, Audio Specialties Group (ASG) performed strongly in a
buoyant market.  Actions taken in 1999 to improve performance created large
revenue increases in both the west and east coast rental operations and also
in west coast equipment sales. There were some increases in operating costs
necessary to support the higher level of business, but operating margins
nevertheless improved.  Several major event projects remain in prospect for
the second half.

The management of the division was strengthened with the addition of Andy
Crist as its Chief Executive in July.  Andy has broad experience of consumer
rental businesses and will lead this division's ambitious growth plans.


           Consolidated profit and loss account
         Six months ended 30 June 2000 (unaudited)


                                                    Audited
                                      Six months to    year
                                               June
                                     2000      1999    1999
                                       £m        £m      £m
                                                           
Turnover                                            

Continuing operations                92.1      80.6   171.4
Acquisition                           2.6         -       -
                                   ______    ______  ______
                                     94.7      80.6   171.4
                                   ______    ______  ______
Operating profit                                           

Continuing operations                18.4      17.7    38.2
Acquisition                           0.4         -       -
                                   ______    ______  ______
Operating profit before goodwill     18.8      17.7    38.2
amortisation
Goodwill amortisation               (0.3)     (0.2)   (0.5)
                                   ______    ______  ______
Operating profit before interest     18.5      17.5    37.7
Net interest payable                (1.5)     (0.3)   (1.1)
                                   ______    ______  ______
Profit on ordinary activities                              
before tax                           17.0      17.2    36.6
Tax                                 (5.3)     (5.4)  (11.4)
                                   ______    ______  ______
Profit on ordinary activities        11.7      11.8    25.2
after tax
Dividends                           (2.3)     (2.4)   (7.6)
                                   ______    ______  ______
Retained profit                       9.4       9.4    17.6
                                   ______    ______  ______
Basic earnings per share            28.5p     24.2p   53.3p
Diluted earnings per share          28.0p     23.9p   52.6p
Headline earnings per share         29.2p     24.7p   54.3p


                 Consolidated balance sheet                                   
                 
               As at 30 June 2000 (unaudited)
                                                      Audited
                                           30 June         31
                                                     December
                                      2000     1999      1999
                                        £m       £m        £m
                                                             
Fixed assets                                                 
Intangible assets                     11.3      9.4      10.0
Tangible assets                       44.0     38.4      37.5
                                    ______   ______    ______
                                      55.3     47.8      47.5
                                    ______   ______    ______
Current assets                                               
Stocks                                34.0     31.3      29.1
Debtors                               35.6     32.8      32.6
Cash at bank and in hand              21.3     30.3      32.8
                                    ______   ______    ______
                                      90.9     94.4      94.5
Creditors - due within one year     (36.2)   (33.9)    (33.7)
                                    ______   ______    ______
Net current assets                    54.7     60.5      60.8
                                    ______   ______    ______
Total assets less current            110.0    108.3     108.3
liabilities
                                                             
Creditors - due after more than     (46.7)   (16.5)    (57.3)
one year
Provisions for liabilities and       (5.9)    (5.7)     (5.9)
charges                             ______   ______    ______
Net assets                            57.4     86.1      45.1
                                    ______   ______    ______
                                                             
Capital and reserves                                         
Share capital including share                                
premium                               10.5     11.4      10.5
Reserves                              46.9     74.0      33.7
                                    ______   ______    ______
Shareholders' funds - equity          57.4     85.4      44.2
Minority interest - equity               -      0.7       0.9
                                    ______   ______    ______
                                      57.4     86.1      45.1
                                    ______   ______    ______
                                                   
                              

     Statement of total recognised gains and losses and
     reconciliation of movements in shareholders' funds
          Six months ended 30 June 2000 (unaudited)
                              
                                                      Audited
                                      Six months to      year
                                               June
                                      2000     1999      1999
                                        £m       £m        £m
                                                             
Profit for the period                 11.7     11.8      25.2
                                                             
Exchange rate movements on             3.8    (0.6)     (4.6)
foreign net investments             ______   ______    ______
                                                             
Total recognised gains relating       15.5     11.2      20.6
to the period
Dividends                            (2.3)    (2.4)     (7.6)
New share capital subscribed             -      0.1       0.6
Share repurchases                        -    (4.8)    (50.7)
                                    ______   ______    ______
Net increase in shareholders'         13.2      4.1    (37.1)
funds
Opening shareholders' funds           44.2     81.3      81.3
                                    ______   ______    ______
Closing shareholders' funds           57.4     85.4      44.2
                                    ______   ______    ______
                                                             


              Consolidated cash flow statement
         Six months ended 30 June 2000 (unaudited)
                                                     Audited
                                      Six months to     year
                                               June
                                      2000     1999     1999
                                        £m       £m       £m
                                                            
Operating profit                      18.5     17.5     37.7
Goodwill amortisation                  0.3      0.2      0.5
Depreciation                           5.5      4.3      8.6
Working capital and other items      (3.7)      3.7      4.3
                                    ______   ______   ______
Net cash inflow from operating        20.6     25.7     51.1
activities
Returns on investments and           (1.6)    (0.4)    (0.9)
servicing of finance
Tax paid                             (6.7)    (5.4)   (10.6)
Net capital expenditure              (4.2)    (6.1)   (10.4)
Acquisitions                         (7.3)    (2.8)    (4.8)
Equity dividends paid                (2.0)    (2.1)    (7.8)
                                    ______   ______   ______
                                                            
Net cash (outflow)/inflow before     (1.2)      8.9     16.6
financing
                                                            
                                                            
Financing                                                   
Issue of shares                          -        -      0.6
Repurchase of shares                     -    (4.8)   (50.7)
Net (repayment)/receipt of loans    (11.0)        -     41.1
                                    ______   ______   ______
Net cash outflow from financing     (11.0)    (4.8)    (9.0)
                                    ______   ______   ______
(Decrease)/increase in cash in      (12.2)      4.1      7.6
the period                          ______   ______   ______
                                                            




    Segmental analysis of turnover and operating profit
         Six months ended 30 June 2000 (unaudited)
                         
                             2000     1999     2000     1999
                               £m       £m       £m       £m
                                                            
Class of business            Turnover      Operating profit
Broadcast camera             31.5     28.0      7.1      5.9
systems
Photographic and retail      34.7     32.0      8.1      9.5
display
Communications and           10.9      7.4      1.1      0.7
audio
Broadcast services           17.6     13.2      2.5      1.6
                           ______   ______   ______   ______
Continuing operations        94.7     80.6     18.8     17.7
before goodwill
amortisation
Goodwill amortisation           -        -    (0.3)    (0.2)
                           ______   ______   ______   ______
                             94.7     80.6     18.5     17.5
                           ______   ______   ______   ______
                                                            
                                                   
Geographical turnover     By destination       By origin
United Kingdom                4.4      3.8     14.1     11.4
The rest of Europe           22.5     20.8     33.1     32.6
The Americas                 55.8     47.0     46.2     35.8
Asia and Australasia         10.8      7.7      1.3      0.8
Africa and Middle East        1.2      1.3        -        -
                           ______   ______   ______   ______
                             94.7     80.6     94.7     80.6
                           ______   ______   ______   ______
                                                            

Notes
1.   Basis of preparation The financial information set out above does not
     constitute statutory accounts for the Group. The interim financial
     statements have been prepared in accordance with accounting policies set
     out in the Group's audited accounts. The figures for the year ended 31
     December 1999 are extracted from the statutory accounts on which the
     auditors issued an unqualified report and which have been filed with the
     Registrar of Companies.

2.   Tax charge The tax charge for the half year is estimated on the basis of
     the anticipated tax rates which will apply for the full year. The tax    
     charge is substantially overseas tax.

3.   Earnings per share The calculation of basic earnings per share is based
     on profit on ordinary activities after tax of £11,651,000 (1999:         
     £11,770,000)and the weighted average number of shares of 40,938,911     
     (1999: 48,549,596).Headline earnings per share is calculated on profit on
     ordinary activities after tax but before amortisation of goodwill using  
     the same number of shares. Diluted earnings per share is based upon      
     profit on ordinary activities after tax and the weighted average number  
     of shares as adjusted for the weighted amount of shares under option of  
     41,593,058 (1999: 49,159,586).

4.   Interim dividend The directors have declared an interim dividend of  5.6p
     per share, which will absorb £2.3 million (1999: 4.9p absorbing £2.4
     million).  The dividend will be paid on 1 December 2000 to shareholders
     on the register at the close of business on 3 November 2000.

5.   Copies of this statement will be sent to all shareholders on the share
     register as at 4 September 2000.  Copies are available on written
     application to the Company Secretary.