21st Feb 2019 10:22
LONDON (Alliance News) - Vitec Group PLC hiked its 2018 dividend a fifth Thursday after profit and revenue both jumped in a "record" financial performance for the content creation technology firm.
In 2018, pretax profit at Vitec - which makes photography and video products such as autocues and camera supports - widened 38% to GBP37.9 million from GBP27.4 million the year prior. This was after revenue rose 9.1% to GBP385.4 million from GBP353.3 million the year before.
"This is a record financial performance for Vitec, with strong growth in revenue, profit and earnings per share," Vitec Chief Executive Officer Stephen Bird said.
"The results benefited from organic growth, improved margins, continued operational excellence, the Winter Olympics and growth at SmallHD despite the disruption earlier in the year," Bird added. "We also successfully completed the integration of JOBY and Lowepro, acquired in the previous year.
"We have continued to grow our addressable markets and add to our higher technology capabilities," Bird continued. "During the year, we completed the transformational acquisitions of Amimon core technology and Rycote audio. Strong cash generation and a robust balance sheet will support further acquisitions."
In September 2018, Vitec acquired noise reduction equipment maker Rycote Microphone Holdings Ltd for up to GBP8.5 million. In November 2018, it then bought chipsets maker Amimon Inc for USD55.0 million in cash
Bird described Vitec as a "strong, agile business" with a "diversified product portfolio" which leave it "well placed to create further value through organic growth, margin improvement and carefully targeted acquisitions."
Vitec proposed a 25.5 pence per share final dividend, up 27% from 20.1p the year prior. For the full year, the dividend rose 21% to 37.0p from 30.5p the year before.
"Despite potential geopolitical challenges, the board remains confident about future growth prospects and the outlook for further progress in 2019 remains unchanged, and second half weighted as expected," Bird concluded.
Shares in Vitec were 7.1% higher at 1,205.00 pence on Thursday.
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