30 June 2016
The Vitec Group plc
A positive start to the year
The Vitec Group plc ("Vitec" or the "Group"), the international provider of products and services for the Broadcast and Photographic markets, issues a trading update ahead of its half year results announcement for the six months ending 30 June 2016 that is scheduled for release on 4 August 2016.
Vitec's year-to-date trading performance has been in line with the Board's expectations and based on exchange rates as at 23 June, its full year expectations remain unchanged. As expected, the Group's second half performance is anticipated to benefit from: the Rio 2016 Olympics; the previously announced restructuring activities; and a stronger US Dollar and Euro.
As highlighted in our AGM update statement, we have a strong balance sheet and are focussing on cash generation through prudent management of our working capital and capital investment. We now anticipate reporting an interim net debt balance lower than our previous expectations despite the adverse impact of recent foreign currency rate movements. We are also targeting an improvement in our expected year-end net debt and will provide a further update when appropriate.
Vitec has a broad geographical split. In 2015, 47% of our revenues came from North America and the remainder was split between Continental Europe (20%), Asia Pacific (18%), UK (10%) and Rest of World (5%). As a result, the Group's reported results benefit from a weaker pound.
The Group continues to focus on its core Broadcast and Photographic markets and is investing in and growing sales in new technologies and the APAC region. Our core Broadcast and Photographic markets are expected to grow in the medium-term driven by the increase in the capture and sharing of high quality images, and by the continued evolution of new technologies.
The Vitec Group plc
Stephen Bird, Group Chief Executive
Paul Hayes, Group Finance Director
Telephone: 020 8332 4600
Nick Hasell / Susanne Yule
Telephone: 020 3727 1340
1. Average foreign exchange rates in the period from January to May 2016:
2. 2015 average foreign exchange rates:
A Snapshot of the Vitec Group
Vitec is a global provider of premium branded products and services to the Broadcast and Photographic markets. Vitec is listed on the London Stock Exchange with 2015 revenue of
The Group is organised in two Divisions:
The Broadcast Division designs, manufactures and distributes premium branded products for broadcasting, film and video production for broadcasters and independent content creators. It also provides premium services including equipment rental and technical solutions to TV production teams and film crews.
The Photographic Division designs, manufactures and distributes premium branded equipment for photographic and video cameras and provides dedicated solutions to professional and non-professional image takers.
More information can be found at: www.vitecgroup.com
This announcement contains forward-looking statements with respect to the financial condition, performance, position, strategy, results and plans of The Vitec Group plc (the "Group" or the "Company") based on Management's current expectations or beliefs as well as assumptions about future events. These forward-looking statements are not guarantees of future performance. Undue reliance should not be placed on forward-looking statements because, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and the Group's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. The Company undertakes no obligation to publically revise or update any forward-looking statements or adjust them for future events or developments. Nothing in this announcement should be construed as a profit forecast.
The information in this announcement does not constitute an offer to sell or an invitation to buy shares in the Company in any jurisdiction or an invitation or inducement to engage in any other investment activities. The release or publication of this announcement in certain jurisdictions may be restricted by law. Persons who are not resident in the United Kingdom or who are subject to other jurisdictions should inform themselves of, and observe, any applicable requirements.