12th May 2015 09:08
LONDON (Alliance News) - The Vitec Group PLC Tuesday reiterated its expectations for the full year, saying it had performed "satisfactorily" in the first four months of 2015, and market conditions have shown some signs of stabilising.
Vitec provides products and services for the broadcast and photographic markets.
Its first half results are expected to be lower than the previous year due to the strength of sterling, and because in the previous period it saw a significant boost from the Sochi Winter Olympics. However, the second half is expected to be stronger as its markets begin to recover, the company said.
Vitec noted that the hit from the strength of sterling is due to the unwinding of previous cash-flow hedges it put in place as part of its hedging policy, and if exchange rates remain at their current levels it will be boosted by a stronger dollar from 2016 onwards.
Adjusting for the Sochi Winter Olympics, and at constant currency, the Broadcast division performed broadly in line with the previous year in its first four months. Its acquisition of Paralinx LLC has been integrated successfully, Vitec said.
Vitec's Photographic division traded in line with expectations, it said, boosted by the launch of new products.
Vitec will announce its first-half results on August 6.
Shares in Vitec are trading down 2.2% at 634.71 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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