25th Feb 2015 09:46
LONDON (Alliance News) - The Vitec Group PLC Wednesday reported a drop in pretax profit and revenue for 2014 after its translated overseas results were hit by the strength of the pound, although its underlying profits rose and it said it was well placed to benefit from any market upturn.
The company, which is now focused on providing products and services to the broadcast and photographic markets, reported a pretax profit of GBP20.1 million for 2014, down from GBP20.4 million in 2013, as revenue slipped to GBP309.6 million, from GBP315.4 million. Its closely-watched operating profit dropped to GBP38.8 million, from GBP39.5 million, as a result although its operating margin was flat at 12.5%.
The company said revenue would have been up 3.3% if currency rates had stayed the same over the year, while operating profit would have been up 7.4% compared with the actual 1.8% decline.
"Our Broadcast Division performed well in a variable market including a strong performance from Teradek, acquired in the second half of 2013. We also benefited in 2014 from contracts to support the Sochi Winter Olympics and the FIFA World Cup. Our premium product and service offering was further strengthened through the acquisitions of Autocue, the speciality camera assets of SIS, and more recently SmallHD," Chief Executive Stephen Bird said in a statement.
"The Photographic Division has taken share in its key markets although we have seen a continuation of challenging conditions, particularly in the camera bags sector. Overall we are pleased with the performance including the success of our new product launches," he added.
Vitec said it will pay a final dividend of 14.7 pence a share, up from the 14.1p final dividend in 2013, bringing its total dividend for 2014 up to 24.0p, up from 23.0p.
"Vitec is well positioned to benefit from any upturn in its markets. Whilst some markets remain challenging, the board remains confident about the prospects for the group," Bird said.
Still, Vitec Group shares were down 0.2% at 645.00 pence Wednesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
VTC.L