12th Aug 2021 11:31
(Alliance News) - Vitec Group PLC on Thursday said strong demand and market growth drove a swing to profit in the first half of the year.
Vitec shares were 1.7% higher at 1,505.00 pence each in London on Thursday morning.
The Richmond, West London-based photography and video products maker swung to a pretax profit of GBP15.1 million in the first half of the year, compared to a loss of GBP7.7 million a year ago.
Revenue jumped 53% to GBP181.4 million from GBP118.9 million.
"The group's positive first half performance is a result of strong demand, market growth and a tightly managed cost base," Chief Executive Stephen Bird said.
Vitec brought back an interim dividend of 11.0 pence per share, which is still 12% lower than 2019's interim payout of 12.3p.
Bird said: "Second half trading has started extremely well, and we expect the combined order intake for July and August to be approximately 20% above 2019."
"The content creation market is a great place to be. The pandemic has accelerated the democratisation and digitalisation of media, driving a permanent structural change to the market. There has been a dramatic increase in the capture, consumption and sharing of video and scripted TV content, and Vitec is right at the heart of this fast-growing market. We expect to deliver strong margin recovery, as we benefit from strong operating leverage and ongoing operational efficiencies, increase sales of higher margin, higher technology products, in-source production of some JOBY products, and grow online sales, particularly in our Imaging Division," he added.
By Greg Roxburgh; [email protected]
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