Robust position in challenging markets
The Vitec Group plc, the international supplier of products, services and solutions to the Broadcast, Photographic, and Entertainment industries, announces its results for the half year ended 30 June 2009.
| Results |
H1 2009 |
H1 2008 |
% Change |
% Change
At CER** |
| Revenue |
£160.8m |
£159.1m |
+1 |
-19 |
| |
| Before significant items* |
|
| Operating profit |
£11.0m |
£18.8m |
-41 |
-62 |
| Profit before tax |
£10.2m |
£17.3m |
-41 |
-63 |
| Basic earnings per share |
16.6p |
27.5p |
-40 |
-63 |
| |
| After significant items* |
|
| Operating profit |
£3.4m |
£13.8m |
-75 |
-92 |
| Profit before tax |
£3.1m |
£12.6m |
-75 |
-93 |
| Basic earnings per share |
6.1p |
24.6p |
-75 |
-91 |
| |
| Operating cashflow*** |
£9.2m |
£(0.9)m |
|
| Net debt |
£52.6m |
£50.3m |
|
| |
| Interim dividend per share |
7.4p |
7.4p |
|
Key points
- Very challenging markets
- Decisive management action to restructure business and reduce costs delivering total annualised savings of £22m, while protecting ability to benefit from an economic recovery
- Good operating cash flow generation of £9.2m
- Balance sheet remains healthy with net debt virtually constant at £52.6m
- Debt facility of £125m until 2013, with significant facility and covenant headroom
- Interim dividend maintained at 7.4p
*H1 2009 significant items total a PBT charge of £7.1 million (2008: £4.7 million) and comprise amortisation of acquired intangibles £(4.4) million (2008: £(3.7) million), charges / provisions for restructuring actions £(2.5) million (2008: £nil), loss on disposal of business £(0.7) million (2008: £nil), a gain of £0.5 million (2008: £0.3 million) relating to volatile financial instruments and a provision against the carrying value of an equity-accounted investment in Media Numerics £nil (2008: £(1.3) million).
**CER: Constant Exchange Rates
***Operating cashflow is defined as the cash generated from operations less capital expenditure plus proceeds from the sale of assets.
Commenting on the results, Stephen Bird, Chief Executive, said:
“As expected, global market conditions have remained challenging and our earlier cost reduction measures have enabled us to mitigate considerably the effects of the volume shortfall. Effective working capital management resulted in good operating and free cash flow generation. We have now identified and committed to further efficiency measures which will deliver an improved second half performance and will increase the annualised savings to £22m in total. Based on this, together with Vitec’s outstanding products, brands and strong market position as well as its robust balance sheet, the Board is confident in the Group’s ability to weather the current challenges and take full advantage of conditions when its markets recover.”
Enquiries
| The Vitec Group plc |
Stephen Bird, Group Chief Executive
Richard Cotton, Group Finance Director |
020 8939 4650 |
| Financial Dynamics |
Sophie Kernon
Charlotte Whitley |
020 7269 7291 |
Vitec is an international group, principally serving customers in the worldwide media sector with products and services for the broadcast, entertainment and photographic industries. Vitec is based on strong, recognized, premium brands that professionals rely on. Vitec’s business is organised into three divisions: Broadcast Systems, Imaging & Staging, and Broadcast Services. Further information can be found at: www.vitecgroup.com.