RNS Number : 9295AThe Vitec Group PLC
26 February 2014
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO THE SAME WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.
26 February 2014
The Vitec Group plc
2013 Full Year Results
A good performance in challenging markets
The Vitec Group plc (Vitec or The Group), the international provider of products and services for the Broadcast and Video, Photographic, and MAG (Military, Aerospace and Government) markets, announces its audited results for the year ended 31 December 2013.
Results
2013
2012
% Change
% Change
Organic CER**
Revenue
£315.4m
£345.3m
-8.7%
-9.2%
Operating profit*
£39.5m
£39.3m
0.5%
-4.2%
Operating margin* %
12.5%
11.4%
110 bps
Profit before tax*
£35.6m
£36.2m
-1.7%
-5.6%
Adjusted earnings per share*
56.1p
55.8p
0.5%
Operating profit
£24.3m
£25.6m
-5.1%
Profit before tax
£20.4m
£16.1m
26.7%
Basic earnings per share
31.9p
13.6p
134.6%
Free cash flow
£21.4m
£10.8m
Net debt
£61.5m
£63.7m
Total dividend per share
23.0p
22.0p
4.5%
Key Points
Operating profit* in line with our expectations
Further improvement in margins with a 110bps increase in operating margin* to 12.5%
Good margin* performance in all three Divisions despite challenging markets
Strong free cash flow of £21.4 million after £7.9 million of restructuring spend
Teradek acquisition performing well and complementing our Broadcast activities
Following the successful restructuring, the streamlined business is strongly positioned to benefit from any market upturn
Recommended 4.5% increase in the total dividend for the full year
* Before restructuring costs and charges associated with acquired businesses. Profit before tax and adjusted earnings per share are also before disposal of business. The Staging business was disposed of in 2012 for a loss of £6.4 million. Restructuring costs in 2013 were £11.4 million (2012: £nil) and charges associated with acquired businesses were a net charge of £3.8 million (2012: £13.7 million) consisting of £2.6 million for the amortisation of acquired intangibles (2012: £3.6 million), £0.4 million of transaction costs relating to an acquisition (2012: £0.3 million), £0.8 million of contingent consideration on previous acquisitions (2012: £1.0 million), and £nil goodwill impairment charge (2012: £8.8 million relating to IMT).
** Organic CER: At Constant Exchange Rates on a comparative basis, excluding year on year effect of acquisitions and disposal of business.
Free cash flow: cash generated from operations in the financial year after net capital expenditure, net interest and tax paid.
Commenting on the results, Stephen Bird, Group Chief Executive, said:
We have delivered a good performance in 2013 despite challenging markets. We have strengthened the business and delivered a further improvement in margins by streamlining our operations and closely managing our cost base. We have continued to make good progress in delivering our strategy of focussing on our core markets and supplementing this with selective value-adding acquisitions.
Within the Videocom Division, the Broadcast and MAG businesses performed well compared with 2012 which had the benefit of the London Olympics. These activities have been complemented by the acquisition of the Teradek wireless device business, which is performing well. The Imaging Division has faced challenging markets, particularly in the US, yet delivered a good level of profitability at similar margins to last year.
Our operational outlook for 2014 remains positive; expected benefits include: a full-year impact from having streamlined our business; a full years ownership of Teradek; and increased activity arising from the Winter Olympics and FIFA World Cup. Foreign exchange movements particularly from the US Dollar and Japanese Yen are expected to negatively impact our results. Although our markets remain challenging, we are well positioned to benefit from any upturn.
Enquiries:
The Vitec Group plc
Telephone: 020 8332 4600
Stephen Bird, Group Chief Executive
Paul Hayes, Group Finance Director
FTI Consulting
Nick Hasell / Susanne Yule
Telephone: 020 7269 7291
Notes 1. This statement is based on information sourced from management estimates.
2. Current market exchange rates as at 24 February 2014: £1 = $1.66, £1 = 1.21, 1 = $1.37, £1 = Yen170.
3. 2013 average exchange rates: £1 = $1.56, £1 = 1.17, 1 = $1.33, £1 = Yen152.
4. 2012 average exchange rates: £1 = $1.58, £1 = 1.23, 1 = $1.29, £1 = Yen127.
5. The Companys Annual General Meeting (AGM) will be held on Thursday, 8 May 2014. The 2013 Annual Report and Accounts and Notice of Annual General Meeting will be posted to shareholders and available on the Companys website from 18 March 2014.
Vitec is an international Group principally serving customers in the Broadcast & Video, Photographic and Military, Aerospace and Government (MAG) markets. Listed on the London Stock Exchange with 2013 revenue of £315.4 million, Vitec is based on strong, well known, premium brands on which its customers worldwide rely. Vitec is organised in three Divisions: Videocom, Imaging and Services.
Videocom designs and distributes systems and products used in broadcasting and live entertainment, film and video production and MAG.
Imaging designs, manufactures and distributes equipment and accessories for photography and video.
Services provides equipment rental, workflow design and technical support to TV production teams and film crews.
More information can be found at: www.vitecgroup.com.
Vitec will be presenting its results to analysts at 10.00 am on Wednesday, 26 February. An audio recording of the presentation, along with the presentation slides, will be available on our website af
