11th Jan 2005 07:00
The Vitec Group PLC11 January 2005 11 January 2005 The Vitec Group plc Close period update The Board currently expects to report a trading profit performance for the yearended 31 December 2004, pre-exceptionals and goodwill amortisation, in line withoverall expectations. 2004 sales, for continuing businesses at constant exchangerates, are expected to be some 16 percent ahead of 2003 and some 8 percent aheadin £sterling terms. The Vitec Group plc ("Vitec" or the "Group") is exploitingthe continued strength of the Photographic division's markets through wellreceived new products, while the Broadcast divisions benefited from underlyingmarket growth and the effect of the Athens Olympics. Operational efficiencycontinues to improve after the restructuring actions, and margins in thePhotographic division will no longer be depressed by the retail displaybusiness, disposed of in December 2003. However, as previously indicated,foreign exchange has a material impact on the Group's reported results. Looking forward, and assuming current market conditions continue in 2005, theGroup expects to benefit from: the ongoing introduction of new products; thecontinuing growth of digital photography and uptake of High Definition TV;further recovery in the US rental market; and the previously announced costreduction initiatives, though these may be partially offset by the effects ofthe decline in the US dollar seen at the end of 2004. If current exchange rates(see notes) continue throughout 2005, notwithstanding the hedging arrangementsin place, the Group estimates that there will be a £2.5million adversetransactional impact and a £0.1million adverse translational impact on 2005operating profit compared to 2004. The Group continues to explore ways tomitigate these effects. Vitec continues to look for acquisitions which will addvalue for shareholders. Overall, the Board views the outlook for 2005 withcautious optimism. The Group will announce its results for the year ended 31 December 2004 on 7March 2005. Enquiries: The Vitec Group, Tel.: 020 8939 4650Gareth Rhys WilliamsAlastair Hewgill Financial Dynamics, Tel.: 020 7269 7291Richard MountainRob Gurner Notes to editors 1. Current market exchange rates: £1 : US$1.88; £1 : €1.43; €1 :US$1.31.2. 2004 average market exchange rates: £1 : US$1.82; £1 : €1.47; €1 :US$1.24. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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