12th Jan 2006 07:00
The Vitec Group PLC12 January 2006 The Vitec Group plc - 2005 Trading Statement 12 January 2006 The Board currently expects to report profit before tax, before significantitems and goodwill impairment, for the year ended 31 December 2005, slightlyahead of the upper end of current market forecasts. 2005 sales are expected tobe some 5% ahead of 2004, which had received a boost from the Olympics, in bothconstant currency and £ sterling terms. Cash generation remained good. We continued to see growth in our Photographic division. Sales of our productswere helped by the underlying market growth for digital SLR cameras,particularly in the USA, and by the recent acquisition of Kata (which continuesto perform well). In Broadcast Systems, the new products launched into themarket and the uptake of High Definition TV, together with sales of equipmentfor the upcoming World Cup, lifted revenue. Broadcast Services sales were downon 2004 (which had seen good growth from the 2004 Olympics and Presidentialelections). The Group is targeting further organic revenue growth in 2006 and will alsobenefit from a full year of sales from Kata. Vitec continues to look foracquisitions which will add value for shareholders and recently announced theexchange of contracts for the purchase of Petrol, a manufacturer of broadcastcamera bags, which is expected to complete this month. Ends Enquiries: The Vitec Group, Tel: 020 8939 4650Gareth Rhys WilliamsAlastair Hewgill Financial Dynamics, Tel: 020 7269 7291Richard Mountain Notes 1. The company will host a telephone conference for analysts at 8.00am today.Please contact Claire Bott on 020 7269 7291 at Financial Dynamics for details. 2. The preliminary results, in accordance with International Financial ReportingStandards, are expected to be released on 6 March 2006. 3. Whilst Vitec has significant production and sourcing in US dollars and hashedging arrangements in place, movements in the $/£ and, particularly, $/• ratescan have a significant impact on reported results. If current exchange ratescontinue throughout 2006, the Group estimates that there will be a neutraltransactional impact and a £0.5 million favourable translational impact on 2006operating profit compared to 2005. 4. Current market exchange rates: £1 = $1.77, £1 = €1.46, €1 = $1.21 5. 2005 average market exchange rates: £1 = $1.82, £1 = €1.46, €1 = $1.24 6. The Vitec Group plc supplies a wide range of equipment and services to thebroadcasting, entertainment and photographic industries. Its products aredistributed in nearly 100 countries, either through dealerships or direct to theend user or corporate customer. The Vitec Group is a major force in its chosenspecialised fields. More information can be found at: http://www.vitecgroup.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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