Final Results

The Vitec Group PLC
1 March 2004


1 March 2004

                              The Vitec Group plc

                     Full Year Results to 31 December 2003



The Vitec Group plc, the international supplier of products, services and
solutions to the Broadcast, Entertainment and Media industries, announces its
results for the year to 31 December 2003.


                                                                                2003          2002
                                                                               million       million
Turnover                                                                       £192.8        £182.2

Turnover from continuing operations                                            £170.4        £164.4

Adjusted, before exceptional items, goodwill amortisation and impairment
     Operating profit from continuing operations                                £17.8         £23.5
     Pre-tax profit                                                             £16.1         £23.1
     Basic EPS                                                                  23.9p         34.1p

After exceptional items, goodwill amortisation and impairment
     Pre-tax profit                                                             £7.8          £16.6
     Basic EPS                                                                  13.6p         18.3p

Total dividend for the year                                                     22.7p         22.7p

KEY POINTS

•    Sales growth of 5.8%, both organic and from acquisitions

•    Strong volume growth in Photographic

•    Successful manufacturing restructuring

•    Increased focus on media and entertainment markets, ALU
     business divested

•    Recommended unchanged final dividend of 16.6p


Commenting on the results, Gareth Rhys Williams, Chief Executive said:


'2003 has seen significant progress on our 'Consolidate-Leverage-Grow' strategy.
While the emphasis has been on consolidation, the benefits of our recent
investments in R&D are beginning to come through with continuing volume growth
in Photographic and encouraging projects in Broadcast.


'Despite falling TV audience figures in the US, there are signs of an upturn in
advertising there.  In addition, photographic demand remains strong and we
expect this to continue during 2004.  However, we expect currency movements to
continue to have a negative effect on the Group.'


Enquiries
The Vitec Group plc                Gareth Rhys Williams            020 8939 4650
Financial Dynamics                 Rob Gurner                      020 7269 7221



Chairman's Statement


2003 saw progress on a number of fronts as we continued to reshape the business
and position it for future growth. Our Broadcast manufacturing facilities have
been restructured and substantial progress made on worldwide IT systems. We
continued to launch attractive new products and our recent acquisitions have
been integrated. However, the results were affected by a combination of overall
weakness in our broadcast markets and by adverse currency effects.

Year on year revenues grew for the first time since 2000 (from £182.2 million in
2002 to £192.8 million in 2003) due to new products and the effect of several
small acquisitions. However, operating profit before exceptional items, goodwill
amortisation and impairment fell (from £24.7 million to £17.8 million) due to
changing product mix, adverse exchange rates, the costs of increased product
development activities and the inefficiencies associated with the series of
plant closures undertaken in 2003.

Earnings per share, before exceptional items, goodwill amortisation and
impairment, were 23.9p (2002: 34.1p) reflecting the factors above and the
continuing high tax rate, which arises because most of the Group's profits are
earned outside of the UK.

Cash generation remained strong, with net cash inflow from operating activities
at £28.7 million (2002: £35.4 million) being 161% of operating profit before
exceptional items, goodwill amortisation and impairment (2002: 143%).

Market overview  The market remained strong for Vitec's Photographic brands,
particularly in the US.  However the demand for our Broadcast Systems products
and for Broadcast Services rental service did not recover. After an encouraging
first three months in 2003, the Gulf War and a slowdown in Asia depressed sales
through most of the rest of the year.

Weakness in broadcast markets was offset by success in other discrete areas,
such as live entertainment and military and government. A pick-up was noticeable
towards the end of the year, particularly in the robotic camera support area,
but I am cautious about drawing any firm conclusions from such limited evidence.
The broadcast rental market in the US stayed subdued for most of the year, and
2003 did not benefit from the major sports event contracts of 2002.

In contrast, I am delighted to report that our Photographic business enjoyed
strong sales to the keen amateur segment, whilst sales to professional
photographers were relatively stable. Volume was up significantly on the
previous year, driven by new products targeted at capturing the growth in
digital still and video imaging but with much of the volume going to the US,
these volume gains were largely negated by the impact of the falling dollar.

Acquisitions and Disposals  In February 2003, Vitec acquired OConnor
Engineering, a leader in camera control heads for the film industry, and Radamec
Broadcast Systems, a leader in automated robotic control systems. These
businesses have been successfully integrated, with OConnor products now
available worldwide through the Sachtler sales channel. Radamec Broadcast
production was transferred to Vinten in Bury St Edmunds. Radamec Broadcast
enjoyed a particularly strong end to the year. Aspen, which was integrated into
Anton/Bauer in 2002, generated sales growth of over 80% in 2003.

In January 2004 we announced the acquisition of Manfrotto's long-standing German
distributor for €1.9 million. It, together with our existing trading companies
in France, Italy and the US, will be renamed Bogen Imaging, establishing a
better marketing platform to support our worldwide photographic dealers.

At the end of the year Vitec broke off discussions with EVS Broadcast Systems
regarding the potential acquisition of that business. Due diligence and other
costs of £0.9 million were written-off as an exceptional item.

In December we announced the sale of the Retail Display business, ALU, for
£11.9m. Whilst revenue grew to £22.4 million during the year, profitability was
affected by a charge of €3.0 million (£2.1 million) for upgrading retail units.
ALU initially developed its business by successfully selling variants of
existing Manfrotto products to clothing retailers. That overlap in product
ranges is no longer so significant and the business was identified as non-core.
I would like to thank Abramo Manfrotto, who has left with ALU, for his work at
Vitec; sales by the Manfrotto business doubled in the years of his leadership.

Changes to the Board  The Board has been strengthened by the appointment of
Nigel Moore from 1 March 2004. Nigel spent most of his career at Ernst & Young
and it is intended he will take over the Chairmanship of the Audit Committee in
September. I am delighted to welcome him to the Board.

I have now served on the Board for eight years, with five of them as Chairman.
It is therefore time to start planning for a successor.  In order to allow for
an appropriate handover period, we are currently undertaking a search process
with a view to making an appointment during 2004.

I would like to thank all our employees worldwide, and my colleagues on the
Board, for the dedication and skill they have shown during the year, one in
which Vitec has made many steps forward in a difficult market.

2003 dividend and dividend policy  The Board is recommending an unchanged final
dividend for the year of 16.6p, giving a total dividend for the year of 22.7p.

The emphasis within the 'Consolidate-Leverage-Grow' strategy has so far been on
consolidation and restructuring of the Group's activities; as the balance
changes towards growth the Board believes it is important to ensure the company
has the flexibility to pursue acquisitions. Accordingly the Board has decided to
adjust its dividend policy to move, over a period of two to three years, towards
an average dividend cover level of around 2 times.

Subject to there being no material adverse factors that may affect the Group's
results in 2004, the Board intends to maintain the interim dividend for the
financial year to December 2004 at 6.1p. The final dividend for that year will
be set taking into account the policy outlined above and the outlook for 2005.

Whilst the Group's strategy is to enhance shareholder value by pursuing growth,
whether organically or by acquisition, the Board recognises that if no suitable
opportunities present themselves over the medium-term it will consider how best
to return cash to shareholders.

Outlook  2003 was a year of considerable change for Vitec and we expect 2004 to
benefit from the plant consolidation programme, largely completed last year, and
from the new products launched recently. Our photographic market remains strong
and continues to benefit from the uptake of digital cameras, however the
broadcast market remains difficult. TV advertising in the US is now more buoyant
than at any time during 2003, which should help our customers' confidence,
although disappointing audience figures may continue to make advertisers
cautious.

With half of Vitec's sales coming from the US, the present weakness of the
dollar will have a negative effect on Vitec during 2004.  Based on the euro,
dollar and yen exchange rates governing at close of business on 26 February
continuing throughout 2004, there would be an adverse transaction effect of some
£2.4 million and an adverse translation effect of some £1.7 million, compared to
2003.

Chief Executive's Review


As underscored in our Half Year Results statement, 2003 proved to be a
challenging year, but one in which Vitec made significant steps forward on its '
Consolidate-Leverage-Grow' strategy.

This strategy involves taking out costs by exploiting our scale, improving our
performance through better use of group-wide manufacturing and IT systems, and
looking to generate growth by focusing our engineering and marketing resources
on those areas where growth can be achieved. Solid progress has been made on all
these fronts, although there is more to do.

Whilst we expect to show organic growth through the new product platforms and
the improved distribution network, there remains an avenue for growth through
acquisition in what is still a fragmented industry. With significant progress in
manufacturing, division-wide IT systems and a management team focused on
delivering growth, Vitec is now able to add value to acquired businesses in a
way that it could not in the past.

Manufacturing restructuring delivered  With our markets well below the peak of
2000, and with lower demand for the more complex studio infrastructure products,
the high operational gearing within our Broadcast businesses was a handicap. The
focus in 2003 was, therefore, on 'Consolidate-Leverage'. Lower cost
manufacturing is vital to counter the effects of the ongoing trend to smaller
cameras and tripods within the lightweight sector of the broadcast market. To
drive manufacturing efficiencies we closed four plants and upgraded the
facilities in Bury St Edmunds, UK and Cartago, Costa Rica (located in a local
Zona Franca). We have taken the opportunity to concentrate Bury St Edmunds on
the more complex Broadcast products, with Cartago concentrating on higher volume
lines. In Italy we have re-organised a number of manufacturing facilities and
processes. Further simplification will be possible following the sale of ALU,
allowing us to run the core facilities there more effectively.  In addition, the
entire Drake business also relocated from Welwyn Garden City to a better-suited
site on the Research Park outside Cambridge, UK.

During the year the Photographic business rolled out a new integrated IT system
to most of its main locations and the Broadcast Systems IT system was extended
to the Cartago site and the Radamec Broadcast and Vinten Inc sales offices.
These systems will greatly improve the information available to managers, and
speed up decision-making and production planning.  The integrated IT system
within Broadcast Services is allowing them to better manage their rental assets,
reducing the need for capital and giving better control over subrentals.

Taken together, the plant reorganisation and the IT implementations have
inevitably been disruptive.  These initiatives have been well managed and
provide the cornerstones for Vitec's future.

Top line growth generated  Whilst the emphasis was on 'Consolidate-Leverage'
during 2003, considerable progress was also made in resuming top line growth.
Despite a difficult market, revenue from continuing operations grew 3.6% during
2003: Broadcast Services was lower due to the non-repeat nature of the 2002 FIFA
World Cup, but this was more than offset by increases in the other Divisions.

Photographic sales were up on the back of some successful product launches at
the end of 2002 and throughout 2003, and Retail Display benefited from a large
US order, albeit at lower margins than in the past. The lighting truss business,
Litec, has seen growth from the adoption

of its new temporary lighting gantry and roofing products. Bogen, the
distribution arm, went from strength to strength in the US, with a number of
exciting new lines, including Kata camera bags.

In Broadcast Systems, while the net growth came from the acquisitions, there was
increased volume in lightweight camera support and useful sales increases at
Anton/Bauer and Clear-Com, both US-based, and at Sachtler.

It was very pleasing that Vitec companies continued to pick up awards for
innovative new products at the major tradeshows: Drake, Clear-Com, Vinten, Anton
/Bauer and Bogen were all recognised for their technical leadership during 2003.
These awards are not ends in themselves, but are encouraging pointers to future
revenues as and when broadcast budgets revive. Drake was also successful in
securing a number of significant intercoms orders for Air Traffic Control
projects. The first of these was delivered in late 2003, and will be
commissioned in early 2004, and we are learning more about the market from each
one. As we won more orders than expected, R&D expense was increased to take
advantage of these opportunities.

At the end of 2003 we opened a sales office for the Broadcast companies in
Beijing to serve the local Chinese TV stations as they prepare for the Olympics
in 2008.

The growth in high definition programming has been exploited by Bexel, who have
provided equipment and technical support for several new TV shows.

Executive team  The Executive Board has been joined by Joop Janssen and
Francesco Bernardi.  Joop, who took over the Broadcast Systems Division  in June
2003, has spent most of his career in broadcast at Thompson and Philips in
product development and business management roles.  Following the sale of ALU,
Francesco Bernardi was promoted to lead Gruppo Manfrotto, having been its Sales
and Marketing Director.  His background is in international marketing.



Photographic and Retail Display

Products for professional photographers and the retail display market

Photographic continues to make good progress

The Photographic Division's best performing market in 2003 has been the US where
Bogen achieved record sales.  Europe did not match this performance and declines
were registered in the key markets of Italy, France and Germany while many
emerging countries in Asia struggled to recover from the SARS epidemic.

The new distribution strategy initiated last year led to the acquisition of the
distribution end of Germany's Multiblitz, which will become part of Bogen
Imaging, and the appointment of Daymen International in the UK.

2003 was another record year for Litec, which produced the highest growth in the
Photographic Division, and Gitzo, which saw a double digit volume growth.

The cinema sector grew considerably this year, with Manfrotto and Avenger
Lighting Supports products widely used throughout the film industry, notably in
the production of blockbuster films such as Lord of the Rings, Peter Pan, Matrix
Reloaded and Matrix Revolutions.

Marketing activities  2003 was a busy year for Manfrotto in terms of
sponsorships and collaborations such as Land Of Africa, a humanitarian
expedition from Switzerland to the Cape of Good Hope; the Toscana Photographic
Workshop which ran photographic courses across Italy in which acclaimed
photographers (including National Geographic and Magnum members) taught young
and aspiring photographers how to get the most from their art; an Italian
speleology expedition to Cuba; and 'Den Forsta Svenska Dhaulagiri Expeditionen',
the first Swedish expedition to the 8000m 'White Mountain' in the Himalayas (the
same expedition team then set out for the South Pole armed with Manfrotto photo
and video equipment); and sponsorship of French aerial photographer Yann Arthus
Bertrand.

New products  In 2003, Manfrotto launched a broad range of new products in both
the video and photographic sectors including the innovative, easy-to-use and
ergonomic grip action ball photographic head; the extended 'DIGI' compact tripod
range, which attacks the amateur end of the market; the spherical panoramic head
which generated a considerable amount of interest with the more specialised
virtual reality end of the market and three new video camera remote pan bars for
all types of user.

Gitzo introduced a selection of new products specifically targeted at the
photographic market's growing trend for miniaturisation within the digital
camera market, and levelling tripods aimed at flexible outdoor applications for
nature and architecture photographers.

IFF launched the Line Shaft Hoist in 2003 aimed at the theatrical market.

Litec developed a smaller compact truss that works in combination with its
revolutionary Libera system to create broad span structures and grid systems
guaranteeing high load capacities with minimal column support. 2003 also saw the
introduction of convenient truss transportation systems and the restyling of
important existing products.

Other activities  IFF was transferred from Florence to premises in Feltre, the
heart of Gruppo Manfrotto's manufacturing area, and a number of the assembly
factories were transformed into flow lines. The year ended with good order
intake, resulting in a significant order book as the business enters 2004.

The new Divisional IT system, Movex, was fully rolled out in the US and in the
manufacturing sites in Italy, representing a step change in the way the business
is managed, with one system replacing six standalone systems.

Retail Display continued to develop in a difficult market, and has now been sold


In 2003 the retail display market continued to be soft, particularly in the US,
where the total fixture industry shrank 6.5% between 2001 and 2003 and the first
half of the year saw ten fixture companies go bankrupt or close factories.
Although big box retailers took more share away from ALU's traditional customer
base (specialty retailers and department stores), the Company was able to
finally reverse a four year decline in the US market.

In Europe, modest improvements in key markets like Germany, the UK and
Scandinavia were negatively offset by the slowdown with a major custom project,
which had reached its peak in 2002 and is now phasing out. Whilst distribution
in the Asia Pacific region is still weak, ALU won a very prestigious
international program with a Hong Kong based cosmetic company.

New products launched (a completely new Autocube system and a renovated version
of Box in December of 2002, and a new rail system called Acrobat in March of
2003) received very strong market response. Autopole, the traditional product,
still performed very well in 2003, thanks to a particularly large order from
Sears.

At the end of the year the disposal of the ALU business for £11.9 million was
announced. Manfrotto will continue to provide administration and IT services to
ALU on an arm's length basis, and a supply contract, principally for Autopole
products, is also in place. I would like to thank all of the staff at ALU for
their work for Vitec, and wish them well for the future.


                                                        2003                   2002
Turnover

Photographic and Retail Display                         £83.9m                 £77.0m
Photographic                                            £61.5m                 £59.2m
Retail Display (discontinued operation)                 £22.4m                 £17.8m

Operating profit*

Photographic and Retail Display                         £13.9m                 £15.4m
Photographic                                            £13.9m                 £14.2m
Retail Display (discontinued operation)                 £0.0m                  £1.2m

Operating margin

Photographic and Retail Display                         16.6%                  20.0%
Photographic                                            22.6%                  23.9%
Retail Display (discontinued operation)                 0.0%                   6.7%



*before exceptional items of £nil (2002: £0.8 million) and goodwill amortisation
of £0.1 million (2002: £0.1 million).

Broadcast Systems

Products and systems primarily for broadcast applications

Product introductions have maintained revenue in a weak market

The two acquisitions in February broadened the product range; cost reduction
initiatives continued in a tough broadcast market.  The consolidation of
manufacturing started to enhance profitability in the camera support product
lines for Vinten and Sachtler in the fourth quarter.

Vinten continues to lead the industry in the design and supply of Studio and
Outside broadcast products. 2003 saw a number of substantial deliveries
including Televisa's Chapultepec Newscenter studios which selected a number of
camera support systems for its studio, including Quartz pedestals complete with
Vector 70 pan and tilt heads. A major station in Austria took delivery of a
number of robotic heads and control systems, as well as manual heads and
pedestals, whilst a television station in Durham North Carolina purchased a
complete robotic camera automation system including three SP-2000XY full servo
pedestals. A number of systems were also installed in food and shopping channels
throughout the US.

Vinten equipment was also hired or purchased for a variety of major events
around the world such as the Golf Masters, Downhill skiing, and extreme winter
sports events in the US.

Vinten and Radamec Broadcast - the two leading Robotic camera control suppliers
- joined forces to develop the broadcast robotics business, creating synergy
between the two operations. The main focus was on manufacturing and product
development to produce the best products at the highest quality level for the
future. New products include the Series 200 controller and the exciting SE-500
Servo Elevation Unit, a remote controlled height positioning unit. Both products
were designed to meet the diverse requirements of robotics in today's demanding
TV environment. This year also saw the launch of the Scenario XR - a virtual
television production system in which the virtual and real video world can be
mixed seamlessly in real time.

Manual products continued to satisfy evolving market demands, not least the
Pro-touch lightweight range now including the Pro-6 and Pro-10 systems. These
provide both outstanding rigidity and exceptional control for the latest range
of professional DV camcorders.

Vinten received a number of awards from trade magazines for exceptional product
design at the NAB convention and the yearly Beijing broadcast show.

In 2003, alongside the cost reduction programme, Sachtler refocused its sales
and innovation resources to satisfy increasing customer demands, with the
OConnor acquisition offering an additional product range and new product
development skills.

The product range was widened by the 75 kg fluid head, with video and film
versions, and the 13 kg ENG head (Video 15) to serve lower camera weight
demands. Furthermore, a low cost version of a fluid head for mini DV-cameras was
introduced, also incorporating the famous Sachtler fluid system.

Sachtler's largest sales during 2003 were 100 sets of ENG-systems for Spanish
TV, the complete ENG project for the African games, a studio lighting system
contract in Japan won against local competitors, and other important studio
lighting systems for Swiss and Austrian TV.

Sachtler broadened its customer base, especially in the US, where a considerable
volume of products were sold in non-broadcast applications.

Anton/Bauer recorded its second highest sales year in 2003. It is building its
worldwide market share, with significant progress being made in Europe,
supported by the expansion of its regional sales and service office in the
Netherlands.

Anton/Bauer continued its record of product innovation, winning industry awards
and customer praise with the introduction of the STASIS power support system.
This unique patented design combines both power and stable operation for small
handheld mini-DV camcorder equipment.

The Aspen product line, acquired in 2002, was improved with the introduction of
the Nexus battery system; this offers an innovative perpetual power feature for
portable cameras. Aspen continues to be key to addressing the growing market
segment of wedding and event videography.

Anton/Bauer also launched its Custom Power Systems (CPS) initiative in 2003 to
leverage its battery and charging technology in other markets. The Company
designed and manufactured a new power system for a leading wireless medical cart
manufacturer, in addition to its longstanding business with a leading
manufacturer of heart assist systems.

Clear-Com and Drake - During 2003 both Clear-Com and Drake continued their high
level of investment in R&D. Despite the sales growth since 2002, the benefits of
the past years investment are not expected to be visible until later in 2004.
The broadcast market remained weak, particularly in Europe, where both companies
experienced low levels of market activity. In the US, Clear-Com benefited from a
strong live performance market and the Company maintained its position as the
leading supplier of intercoms to this market.

During the year Drake won a significant number of orders from the air traffic
control (ATC) authorities in China, Korea, Vietnam and Africa for voice
communications systems. Delivery of these systems commenced in late 2003, with
commissioning of the first of them in early 2004.

Clear-Com received a PLASA award in November for CellCom, a unique patent
pending digital wireless intercom. It also launched the ECLIPSE digital matrix,
which establishes new standards in performance and functionality.

Customer support received a substantial boost in 2003 with the establishment of
a '24x7' user support centre. The centre has been introduced to provide
immediate response to customers in every time zone; it provides technical advice
and assistance with trouble-shooting, web based ordering and tracking of repairs
and bespoke care plans for special cases.


                                    2003                   2002
Turnover                            £81.9m                 £75.7m
Operating profit*                   £3.9m                  £8.4m
Operating margin                    4.8%                   11.1%



*before exceptional items of £1.9 million (2002: £5.0 million) and goodwill
amortisation of £0.7 million (2002: £0.4 million).



Broadcast Services


Rental services and technical support mainly for the broadcast market

Focus on control of rental assets has generated cash in a difficult market

Although Broadcast Services benefited from a continued upturn in market demand
for several types of large scale and High Definition productions in 2003, it was
impacted by generally weak ongoing trading conditions in the US broadcast
industry. As a result, and without the recurrence of 2002's large Winter Olympic
and World Cup contracts, the Division's turnover fell by 8%, and operating
profit before exceptional items, goodwill amortisation and impairment charges
dropped to break-even.

Capital expenditures, however, were tightly constrained, bringing the Division's
pool of equipment much more in line with demand. Broadcast Services made
increasing use of its integrated asset management system in 2003, which allowed
for improved equipment utilisation and optimal usage of rentals from third
parties. This discipline, coupled with tighter controls over working capital,
enabled the Division to boost its operating cash flow to $7.0 million in 2003.

A more proactive sales effort, greater sales force training and a new customer
relationship management system helped produce volume increases in several areas,
despite the weak overall market demand.

The Division built customised High Definition (HD) portable broadcast equipment
modules in 'road-ready' travel cases, and designed innovative audio and video
production packages, to enhance its position in the rapidly growing HD broadcast
market.

The Bexel brand's fibre-optic-based studio HD systems captured four prime-time
series: Grounded for Life, which aired on the Warner Brothers Network, Hope and
Faith on ABC, and The Tracy Morgan Show and Whoopi on NBC.

Bexel's nationwide network of offices allowed it to support long-term travelling
series, such as The Jamie Kennedy Experiment for Tribune Entertainment. The
Division also supported major North Atlantic Treaty Organisation and World Trade
Organisation events with large custom-built audio/video systems. The nationwide
network was also invaluable support for sporting event producers such as Turner
Broadcasting, which used Bexel equipment packages to broadcast a selection of
the week's best National Basketball Association games in many different cities.

Bexel's BBS unit supported the broadcasts of many world-class sporting events,
including: The Super Bowl; the Kentucky Derby, Preakness and Belmont Stakes '
triple crown' of US horse racing; the FIFA Women's World Championship; the US
Open Tennis and Golf Championships; and HD broadcasts of premier National
Football League and Major League Baseball games.

The Division also made significant inroads in the vibrant reality television
sector. By combining its comprehensive inventory of audio and video equipment
with expert product design and technical advice in both disciplines, the
Division won several hit shows from entrenched competitors. Broadcast Services
thus became the 'one-stop' first choice for the producers of MTV's The Osbournes
and Newlyweds, CBS' Survivor, NBC's The Apprentice (starring Donald Trump), and
Fox's Paradise Hotel, Casino and Forever Eden.

The Division's sales units also scored major successes. Audio Specialties Group
(ASG) was awarded a three-year contract to be the exclusive US distributor of
innovative Radio Frequency products for HME, a leading broadcast audio
manufacturer. ASG also introduced Drake's Digital Matrix Intercom System
products to the US market. Bexel's Broadcast Video Gear unit increased its
presence in the US used equipment sales arena and outperformed most of its
competitors, especially late in the year, when it set all-time records for sales
volume despite a generally adverse market.


                                    2003                   2002
Turnover                            £27.0m                 £29.5m
Operating profit*                   £0.0m                  £0.9m
Operating margin                    0.0%                   3.1%



* before goodwill amortisation of £0.5 million (2002: £0.4 million) and
impairment of goodwill of £2.1 million (2002: £nil).

Financial Review


Continuing operations

Turnover increased by £6.0 million (from £164.4 million to £170.4 million) or
3.6% in the year. Most of the underlying growth occurred in the Photographic
Division. The broadcast and media industries remained depressed for most of the
year, but Broadcast Systems benefited from a contribution of £5.9 million
arising from the acquisition of Radamec Broadcast Systems and OConnor
Engineering. Excluding acquisitions, sales growth was £4.8 million or 2.9%, but
this was negated by the adverse effects of FX rates on translation, £1.2
million, and transaction £3.5 million.

Gross profit margins fell from 46.0% to 43.6% reflecting a poorer mix in a
number of businesses and the adverse effect of FX transactions, particularly in
the Photographic Division. Gross profits were £3.6 million lower than the prior
year before a contribution of £2.2 million from acquisitions.

Net operating expenses before exceptional items of £1.9 million and goodwill
amortisation and impairment charges of £3.4 million increased by £4.4 million to
£56.6 million (£63.6 million in total, less £7.0 million for discontinued
operations).  £2.5 million of the increase related to acquired businesses. £1.2
million was due to an 18% increase in research, development and engineering
costs and £2.0 million to increased investment in sales and marketing costs,
offset by a £1.3 million benefit from foreign exchange translation.

Operating profits on continuing business before exceptional items and goodwill
amortisation and impairment charges fell from £23.5 million to £17.8 million and
operating profit margins were 10.4% compared to 14.3% in 2002. The year on year
effect of translating overseas profits was £1.2 million favourable and the
effect of exchange rate changes on transactions, principally the weaker dollar
against the euro, was £2.3 million unfavourable after hedging.

As previously announced, the Group has taken operating exceptional charges of
£1.9 million, comprising £1.0 million for the closure of Radamec Broadcast's
manufacturing facility at Chertsey and £0.9 million costs relating to the
unsuccessful acquisition of EVS Broadcast Equipment.

Discontinued operation and related exceptional item

The sale of the Retail Display business on 30 December 2003, resulted in a loss
on disposal, before tax, of £3.0 million after £1.0 million of divestment costs.
The loss was after charging goodwill of £2.4 million, including £2.1 million
previously written off to reserves. There was an associated tax credit of £4.1
million, which will significantly reduce the tax payable in Italy in 2004.

In the year to December, Retail Display's net turnover increased by 25.8% to
£22.4 million (2002: £17.8 million), due principally, to a pick up in the US
market, including a $7.3 million (£4.5 million) order from Sears . Operating
profit was £nil (2002: £1.2 million) as a total of €3.0 million (£2.1 million)
had to be provided for the upgrade of retail units, an increase of €1.5 million
(£1.0 million) over the amount announced and charged at the half year.

Goodwill amortisation and impairment  The charge for goodwill amortisation and
impairment was £3.4 million (2002: £0.9 million).  This included £0.3 million
attributable to 2003 acquisitions and an impairment charge of £2.1 million
against the goodwill on the US Systems Wireless business.

Taxation  The effective taxation rate on operating profit before exceptional
items, goodwill amortisation and impairment has increased to 39.8% from 39.4% in
2002. The tax charge is relatively high because profits have arisen in high tax
jurisdictions but the Group has incurred net losses in the UK on which it has
not benefited from tax relief. In 2003, £0.3 million of the £6.4 million tax
charge on ordinary activities represents deferred tax and is, therefore, a
non-cash charge.

Cash flow and net debt  Cash generation remained good despite the lower profits.
Net debt decreased during the year by £1.5 million to £10.4 million as the cost
of the two acquisitions (£6.4 million) and the cash costs of restructuring
actions were more than offset by the sale of the Alu business (net cash effect
£8.0 million).

Net cash inflow from operating activities was £28.7 million (2002: £35.4
million), equating to 70p per share (2002: 86p per share). Cash flow from a
reduction in working capital was £4.0 million (2002: £0.6 million). Capital
expenditure and financial investments were £10.2 million (2002: £10.5 million),
of which £2.8 million related to rental assets and £1.1 million to IT projects,
partly financed by the proceeds from asset disposals of £2.4 million (2002: £3.9
million).

Working capital was increased by the effect of the two acquisitions but reduced
by the divestment of the Retail Display business. Stocks increased by £2.7
million to £33.2 million, due principally to acquisitions and stock build
associated with restructuring. Stock days increased to 126 (2002: 112) partly as
a result of the disposal of the Retail Display business with its higher stock
turn. Trade debtors were £0.3 million lower than last year with debtor days at
60 days (2002: 57 days). However, trade creditors at £15.0 million were £2.9
million higher than last year, largely reflecting the increased level of
activity.

Tax paid in 2003 was £10.8 million, £4.2 million more than 2002, as 2003
included settlement of an historic tax claim of £1.4 million, whereas 2002
included the benefit of two tax rebates totalling some £2.4 million.

Treasury Policy  Financing, currency hedging and tax planning are managed
centrally. Hedging activities are designed to protect profits, not to speculate.
Substantial changes to the financial structure of the Group or treasury practice
are referred to the Board. During the year, the Board approved the use of option
contracts for hedging foreign currency receipts.

As in previous years, a portion of the transactions of subsidiaries in foreign
currencies is hedged 12 months forward. Forward foreign exchange contracts at 31
December 2003 totalled £16.0 million (2002: £27.0 million), after some £3.0
million worth were transferred with the divestment of Retail Display. In
addition, the Group had simple option contracts, for the sale of dollars for
euros over the period August 2004 to June 2005 totalling £8.4 million.
Translation of foreign currency profits and interest rates are not normally
hedged. Foreign currency net assets are not hedged other than by normal Group
borrowings.

The Group operates strict controls over all treasury transactions involving dual
signatures and appropriate authorisation limits.

Financing Activities  The average cost of borrowing for the year was 4.8% (2002:
5.2%). Net interest cover (using profit before exceptional items, goodwill
amortisation and impairment) remained high at 10 times (2002: 15 times) despite
the lower profits. The Group's three-year committed facilities expire in October
2005.

UK pensions  The Group contributes to two UK defined-benefit pension schemes. At
the end of the year the Group closed both schemes to new members, replacing them
for 2004 onwards with a Group personal pension plan with Standard Life. As set
out last year, based on an estimated funding deficit of £2.7 million as at
December 2002, the Group increased its contributions to the schemes by £125,000
per annum in 2003 (some 20%). It is believed that this action, along with an
improvement in financial conditions, will mitigate the shortfall over a number
of years. A full triennial actuarial valuation is due as at 5 April 2004.

International Financial Reporting Standards  The Group has carried out a
preliminary review of the implications of the proposed international accounting
standards that will come into force in 2005, but has not yet evaluated the
likely financial effect.


Consolidated profit and loss account
For the year ended 31 December 2003
                                                                          2003        2002
                               Before
                          exceptional
                            items and
                             goodwill
                         amortisation                     Goodwill
                                                    amortisation &
                                       Exceptional      impairment                  Restated (1)
                                             items                       Total         Total
                                   £m           £m              £m          £m          £m
Turnover
Existing operations             164.5                                    164.5       164.4
Acquisitions                      5.9                                      5.9

Continuing operations           170.4                                    170.4       164.4
Discontinued operation           22.4                                     22.4        17.8

                                192.8                                    192.8       182.2

Cost of sales                 (111.4)            -               -     (111.4)      (99.4)


Gross profit                     81.4            -               -        81.4        82.8
Net operating expenses         (63.6)        (1.9)           (3.4)      (68.9)      (64.8) (2)

Operating profit
Existing operations              18.2        (0.9)           (3.1)        14.2        16.8
Acquisitions                    (0.4)        (1.0)           (0.3)       (1.7)           -

Continuing operations            17.8        (1.9)           (3.4)        12.5        16.8
Discontinued operation              -            -               -           -         1.2
                                 17.8        (1.9)           (3.4)        12.5        18.0

Profit on sale of                   
fixed assets                        -            -               -           -         0.2

Loss on disposal of                 
discontinued operations             -        (3.0)               -       (3.0)           -             

Profit on ordinary
activities before
interest                         17.8        (4.9)           (3.4)         9.5        18.2
Net interest payable            (1.7)            -               -       (1.7)       (1.6)


Profit on ordinary
activities before tax            16.1        (4.9)           (3.4)         7.8        16.6
                                 
Tax on profit on              
ordinary activities             (6.4)          4.1               -       (2.3)       (9.1)

Profit on ordinary
activities after tax
and for the financial             
year                              9.7        (0.8)           (3.4)         5.5         7.5
Dividends                                                                (9.3)       (9.3)

Retained loss for the                                                    
year transferred to
reserves                                                                 (3.8)       (1.8)

Basic earnings per                                                       13.6p       18.3p
share
Diluted earnings per                                                     
share                                                                    13.5p       18.3p
Adjusted basic                                                           
earnings per share(3)                                                    23.9p       34.1p

(1) Net operating expenses and cost of sales in the year ended 31 December 2002 have been
restated following the re-categorisation to cost of sales of £5.3 million of variable
warehouse and service costs within the Broadcast Services Division and £1.1 million of
exchange gains previously classified as net operating expenses.

(2) Net operating expenses in the year ended 31 December 2002 included £5.8 million of
exceptional restructuring costs and £0.9 million of goodwill amortisation.

(3) Adjusted basic earnings per share is presented as the Directors consider that this
gives valuable additional information about the ongoing earnings performance of the Group.

There is no material difference between the Group's profit and loss account and the
historical cost profit and loss account.   Accordingly, no note of the historical cost
profit and loss for the period has been presented.



Balance sheets
As at 31 December 2003
                                                                Group                         Company
                                                 2003            2002            2003            2002
                                                   £m              £m              £m              £m
Fixed assets

Intangible assets                                10.1            11.0               -               -

Tangible assets                                  34.5            42.7             2.1             2.2

Investments                                       0.5             0.5           155.1           144.8

                                                 45.1            54.2           157.2           147.0
Current assets
Stocks                                           33.2            30.5               -               -

Debtors                                          42.2            37.0             2.8             2.3

Cash at bank and in hand                         15.6            16.1             4.0             2.3

                                                 91.0            83.6             6.8             4.6

Creditors - due within one year                (37.3)          (36.8)          (52.6)          (48.3)

Net current assets/(liabilities)                 53.7            46.8          (45.8)          (43.7)

Total assets less current liabilities            98.8           101.0           111.4           103.3
Creditors - due after more than one            (26.1)          (24.3)          (26.0)          (24.0)
year
Provisions for liabilities and                 (12.4)          (13.8)           (0.1)           (0.1)
charges

Net assets                                       60.3            62.9            85.3            79.2

Capital and reserves
Called up share capital                           8.2             8.2             8.2             8.2
Share premium account                             2.6             2.6             2.6             2.6
Capital redemption reserve                        1.6             1.6             1.6             1.6
Revaluation reserve                               1.5             1.5             0.9             0.9
Other reserves                                      -               -            53.7            53.7
Profit and loss account                          46.4            49.0            18.3            12.2

Shareholders' funds - equity                     60.3            62.9            85.3            79.2




Consolidated statement of total recognised gains and losses
For the year ended 31 December 2003
                                                                               2003         2002
                                                                                 £m           £m
Profit for the financial year                                                   5.5          7.5
Exchange rate movements on foreign net investments                            (0.9)        (2.5)

Total recognised gains and losses relating to the year                          4.6          5.0
Prior year adjustment                                                             -        (2.3)

Total recognised gains and losses since the last annual report                  4.6          2.7


Reconciliation of movements in consolidated shareholders' funds
For the year ended 31 December 2003
                                                                               2003         2002
                                                                                 £m           £m
Profit for the financial year                                                   5.5          7.5
Dividends                                                                     (9.3)        (9.3)

Retained loss for the year                                                    (3.8)        (1.8)
Exchange rate movements on foreign net investments                            (0.9)        (2.5)
Goodwill previously written off included in profit for the financial            2.1            -
year
New share capital subscribed                                                      -          0.1

Net decrease in shareholders' funds                                           (2.6)        (4.2)
Opening shareholders' funds                                                    62.9         67.1

Closing shareholders' funds                                                    60.3         62.9




Consolidated cashflow statement
For the year ended 31 December 2003
                                                                                      2003       2002
                                                                                        £m         £m
Net cash inflow from operating activities                                             28.7       35.4
Returns on investments and servicing of finance
Interest received                                                                      0.2        0.3
Interest paid                                                                        (2.0)      (1.9)

Net cash outflow from returns on investments servicing of finance                    (1.8)      (1.6)

Tax Paid                                                                            (10.8)      (6.6)

Capital expenditure and financial investments
Purchase of tangible fixed assets                                                   (10.2)     (10.0)
Sale of tangible fixed assets                                                          2.4        3.9
Purchase of fixed asset investments                                                      -      (0.5)

Net cash outflow from capital expenditure                                            (7.8)      (6.6)
Acquisitions & Disposals
Purchase of subsidiary undertakings                                                  (6.4)      (1.7)
Disposal of subsidiary undertakings                                                    2.6          -
Equity dividends paid                                                                (9.3)      (9.3)

Net cash inflow before financing                                                     (4.8)        9.6
Financing
Issue of shares                                                                          -        0.1
Repayment of loans                                                                   (1.9)     (12.0)
New unsecured loan(1)                                                                  5.4          -

Net cash outflow from financing                                                        3.5     (11.9)
Decrease in cash in the year                                                         (1.3)      (2.3)

(1) New unsecured loans of £5.4 million were obtained by ALU srl prior to its sale and were
transferred as part of the disposal of that business.




Activity analysis
                                Operating profit                Turnover              Net assets
                                 2003       2002        2003        2002        2003        2002
                                   £m         £m          £m          £m          £m          £m
Class of business
Broadcast Systems                 3.9        8.4        81.9        75.7        35.9        31.4
Photographic                     13.9       14.2        61.5        59.2        29.4        17.0
Broadcast Services                  -        0.9        27.0        29.5        15.7        20.5
                                 17.8       23.5       170.4       164.4        81.0        68.9
Goodwill amortisation and
impairment(1)                   (3.4)      (0.9)           -           -           -           -
Exceptional items(2)            (1.9)      (5.8)           -           -           -           -

                                 12.5       16.8       170.4       164.4        81.0        68.9

Discontinued operation(3)           -        1.2        22.4        17.8           -        12.3

                                 12.5       18.0       192.8       182.2        81.0        81.2

Group net liabilities(4)                                                      (20.7)      (18.3)

                                                                                60.3        62.9

(1) Goodwill amortisation relates to Broadcast Systems - £0.7 million (2002: £0.4 million),
Photographic - £0.1 million (2002: £0.1 million) and Broadcast Services - £0.5 million (2002:
£0.4 million) and impairment losses of £2.1 million (2002: £nil) relate to Broadcast Services.
The net book value of goodwill relates to Broadcast Systems - £4.6 million (2002: £2.5 million),
Photographic - £1.8 million (2002: £1.8 million) and Broadcast Services - £3.2 million (2002:
£6.0 million).

(2) Exceptional items relate to Broadcast Systems £1.9 million (2002: £5.0 million),
Photographic £nil (2002: £0.8 million).

(3) The discontinued operation relates to the Retail Display business sold on 30 December 2003.

(4) Group net liabilities include cash, financing and capitalised goodwill.


Activity analysis (cont)
                                      Operating profit              Turnover              Net assets
                                       2003       2002       2003       2002        2003        2002
                                         £m         £m         £m         £m          £m          £m
Geographic area by origin
United Kingdom                        (2.8)      (4.1)       31.0       21.6        14.6         9.7
The rest of Europe                     13.7       17.2       56.4       58.2        29.2        16.1
The Americas                            6.7        9.7       83.0       81.9        35.9        41.7
Asia and Australasia                    0.2        0.7          -        2.7         1.3         1.4
                                       17.8       23.5      170.4      164.4        81.0        68.9
Goodwill amortisation and
impairment(1)                         (3.4)      (0.9)          -          -           -           -
                                      
Exceptional items(2)                  (1.9)      (5.8)          -          -           -           -

                                       12.5       16.8      170.4      164.4        81.0        68.9
Discontinued operation(3)                 -        1.2       22.4       17.8           -        12.3
                                       12.5       18.0      192.8      182.2        81.0        81.2

Group net liabilities                                                             (20.7)      (18.3)

                                                                                    60.3        62.9

(1) Goodwill amortisation relates to the United Kingdom - £0.3 million (2002: £nil), The rest of
Europe - £0.1 million (2002: £0.1 million) and The Americas - £0.9 million (£0.8 million) and
impairment losses relate to The Americas - £2.1 million (2002: £nil).
The net  book value of goodwill relates to the United Kingdom - £2.7 million (2002: £0.5 million),
The rest of Europe - £1.8 million (2002: £1.9 million) and The Americas - £5.1 million (2002: £7.9
million).

(2) Exceptional items relate to United Kingdom - £1.9 million (2002: £0.6 million) , The rest of
Europe - £nil (2002: £4.3 million) and The Americas -  £nil (2002: £0.9 million).

(3) The discontinued operation relates to the Retail Display business sold on 30 December 2003.




Activity analysis (continued)
                                                                                                Turnover
                                                                                      2003          2002
                                                                                        £m            £m
Turnover by destination
United Kingdom                                                                         9.1           8.0
The rest of Europe                                                                    44.7          39.9
The Americas                                                                          91.1          90.4
Asia and Australasia                                                                  21.5          21.9
Africa and Middle East                                                                 4.0           4.2

                                                                                     170.4         164.4
Discontinued operation(1)                                                             22.4          17.8

                                                                                     192.8         182.2


(1) The discontinued operation relates to the Retail Display business sold on
30 December 2003.





Note



Basis of preparation

The financial information for the years ended 31 December 2003 and 31 December
2002 contained in this preliminary announcement was approved by the Board on 1
March 2004. This announcement does not constitute statutory accounts of the
Company within the meaning of section 240 of the Companies Act 1985.

Statutory accounts for the year ended 31 December 2002 have been delivered to
the Registrar of Companies. Statutory accounts for the year ended 31 December
2003 will be delivered to the Registrar of Companies following the Company's
Annual General Meeting. The auditors have reported on both these sets of
accounts. Their reports were not qualified and did not contain a statement under
section 237(2) of the Companies Act 1985.






                      This information is provided by RNS
            The company news service from the London Stock Exchange