12th Jan 2007 07:01
The Vitec Group PLC12 January 2007 12 January 2007 The Vitec Group plc 2006 Trading Update The Board of The Vitec Group plc ("Vitec") announces the following period-endupdate on trading for the year to 31 December 2006. 2006 has been another strong year for Vitec. The Board expects results for theyear ended 31 December 2006 to be at the upper end of current market forecasts,with sales expected to be around £220 million, some 13% ahead of 2005. Organicrevenue growth is expected to be 10% and growth from acquisitions 3%. Cashgeneration remained good, and capex spending was increased during the year. Photographic has benefited from the growing sales of digital SLR cameras andfrom increased spending by professionals on lighting equipment. Revenue inBroadcast Systems was lifted by the trend to High Definition (HD) programmemaking. Broadcast Services saw a stable market, boosted in the first half bysuccessful contracts for the Winter Olympics, and is well positioned to gainfrom the 2008 Beijing games. Both Photographic and Broadcast Systems havebenefited from the move of production to lower cost suppliers. The Group expects to make further progress in 2007, with revenue growthprincipally in Photographic. The recent acquisitions of Autoscript and TomcatGlobal are both trading well and Vitec continues to look for acquisitions thatcomplement its existing businesses and add further value for shareholders. TheBoard is therefore confident in the Group's prospects. Ends Enquiries:The Vitec Group, Tel: 020 8939 4650Gareth Rhys WilliamsAlastair Hewgill Financial Dynamics, Tel: 020 7269 7121Richard MountainSusanne Walker Notes 1. The company will host a telephone conference for analysts at 8.15am today.Please contact Elaine Ryman on 020 7269 7121 at Financial Dynamics for details. 2. The preliminary results will be released on 5 March 2007. 3. As previously stated, whilst Vitec has significant production and sourcing inUS dollars and has hedging arrangements in place, movements in the $/£ and,particularly, $/• rates can have a significant impact on reported results. Afterhedging, the Group expects to see an adverse effect of some £0.7 million onoperating profit in 2006 compared to 2005 and, if current exchange ratescontinue throughout 2007, an adverse impact of some £2 million on 2007 operatingprofit compared to 2006. 4. Current market exchange rates: £1 = $1.30, £1 = €1.94, €1 = $1.49 5. 2006 average market exchange rates: £1 = $1.84, £1 = €1.47, €1 = $1.25 6. The Vitec Group 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. Vitec is based on strong, well known, premiumbrands that professionals rely on. Vitec is organised in three divisions:Photographic, Broadcast Systems and Broadcast Services. More information can befound 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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