30th Sep 2016 07:43
LONDON (Alliance News) - Vislink PLC on Friday booked a big loss in the first half due to impairments charges following a rough trading period and said it is holding talks with lenders ahead of its breaching its September loan covenants.
Vislink, which provides technology services to the broadcasting, surveillance and public safety markets, said it is restructuring its Vislink Communications Systems business to ensure it can be profitable in the future after a weak first half. In total, the company booked GBP29.6 million worth of writedowns related to this restructuring.
This pushed Vislink to a GBP32.2 million loss in the half-year to the end of June, a massive widening on the GBP881,000 loss a reported a year prior.
Revenue declined to GBP22.6 million from GBP26.6 million, following weaker-than-expected trading in the second quarter of the year. For the half, Vislink secured GBP22.3 million in orders, down from GBP28.2 million a year before.
The fall in revenue was driven by Vislink Communication Systems, where sales dropped 19% in the first half year-on-year. Pebble Beach Systems, Vislink's broadcast automation software arm, saw much higher order intake in the first half, but revenue also missed Vislink's expectations.
Vislink added it is currently fully utilising its GBP15.0 million revolving credit facility and is forecast to breach its September 2016 banking covenant. It is holding talks with lenders to reach an agreement on its banking facilities.
Vislink shares sunk on Friday in response to the news, down 41% to 9.40 pence and the worst performer in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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