26th Nov 2020 13:54
(Alliance News) - Vitec Group PLC on Thursday reported that trading has continued to improve while its end markets recover.
Vitec, a London-based provider of branded hardware products and software solutions, said revenue was approximately 6% lower in the four months to October 31 compared to the same period in 2019. As a result, Vitec now expects its adjusted pretax profit to be around GBP4.7 million, which is slightly above current market expectations.
Chief Executive Stephen Bird said: "We are encouraged that trading has improved over the past few months and that we have seen a faster than expected recovery, even though our markets remain about 25% closed."
Looking ahead to 2021, Vitec said it is confident that "the recovery in trading will continue, albeit not to the levels seen in 2019," and it expects to deliver a strong cash generation.
"Longer term, we are confident that our end market drivers remain intact and that our competitive position has been enhanced, leaving us well placed to benefit from the structural changes to the market," the company said.
Assuming the market recovery continues, Vitec said that it expects to resume dividends in 2021.
Shares in Vitec were up 1.8% at 814.00 pence in London on Thursday.
By Zoe Wickens; [email protected]
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