21st May 2019 16:38
LONDON (Alliance News) - Vitec Group PLC said Tuesday its trading in the four months to the end of April was in line with expectations.
Vitec - which makes photography and video products such as autocues and camera supports - said its Production Solutions unit "performed strongly" in the period. The company said its Creative Solutions business "continued to grow".
Vitec said its Imaging Solutions unit has "continued to outperform a challenging market". The company said this performance was through expanding into adjacent market segments.
The company has also announced a "significant" investment in its web marketing and e-tail capabilities, within its Imaging Solutions unit.
The total investment is expected to be around EUR8.5 million, which will be incurred primarily in 2019 and 2020. The company expects to build an annual run rate of about EUR3.0 million by the end of 2021.
"Following a record financial performance in 2018, Vitec continues to consolidate its position and to deliver progress," said Chief Executive Stephen Bird. "The investment in Imaging Solutions is an important strategic move at the right time, and will support further growth, enabling us to take advantage of retail trends towards e-commerce where we outperform the competition and enjoy higher margins."
The company's expectations for 2019 are unchanged.
In 2018, Vitec reported pretax profit of GBP37.9 million on revenue of GBP385.4 million.
"Whilst we remain mindful of geopolitical challenges, we are pleased to confirm that our outlook for the current year is unchanged, and second half weighted.We expect a strong 2020, given the summer Olympics, US Presidential elections and the targeted growth initiatives already implemented," added Bird.
Vitec is expected to release its half year results on August 8.
Shares in Vitec closed down 0.9% Tuesday at 1,160.00 pence each.
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