Vitec's strategy is to focus on the "image capture and content creation" market.
Vitec operates in the fast moving and growing “image capture and content creation” market. The overall market is an attractive one, with growth driven by the proliferation of image capture and sharing among an ever increasing number of content creators.
In 2019, Vitec made significant progress against our strategic objectives. We delivered a robust financial performance despite being impacted by severe retailer disruption in Imaging Solutions and a slower than expected recovery at SmallHD following the fire in 2018 and the ending of receipt of insurance income.
Our strategic investment during 2019 was wide-ranging, including innovative product development, sourcing and manufacturing excellence, extending our distribution and digital channels, strengthening our talent base, and expanding our addressable markets through M&A activity. Our structure is simple and lean which enables focused decision-making and allows us to react quickly to customer, market and technological changes. We have a strong balance sheet to support future organic and M&A investment, while providing progressive dividends for shareholders.
Our strategic priorities were unchanged in 2019 and continue to remain appropriate so will again be our priorities for the medium-term: to drive organic growth; improve margins; and to invest in new technology and markets.
Our strategic priorities
We leverage our premium brands by investing selectively in faster growing market segments. We launch innovative new products, expand our geographical reach and maximise our distribution and digital channels to get closer to our customers and increase market share.
We are focused on improving our operating profit margins by optimising our manufacturing and assembly portfolio, by improving productivity and channel mix, and from capturing synergies from acquisitions.
We have a clear and focused M&A strategy to increase addressable markets served and further increase our higher technology capabilities. Our strong cash generation and robust balance sheet allow us to make progress.