Vislink (VLK) said acquisitions would be crucial to achieving the ambitious growth plans set three years ago. They have been, but only because the high-tech broadcast and surveillance equipment maker has bought well. Picking up Pebble Beach Systems earlier this month keeps it on track to generate £8m of adjusted operating profit in 2014 on £80m of sales, according to management.
Brokers remain more circumspect, however. Buying Pebble Beach, which develops software used by TV broadcasters and cable and satellite operators, convinced N+1 Singer to upgrade its EPS forecasts for 2014 by 8 per cent to 3.9p, and by 11 per cent for next year to 4.4p. Adjusted operating profit rocketed 40 per cent in 2013 to £4.3m, but the broker still only has £6.8m pencilled in for this year. “They’re the analyst’s forecast, not ours,” says executive chairman John Hawkins. “We’re still on track financially, and have a group capable of growth well beyond the targets set out in 2011."
Clearly, there’s firepower for further bolt-on acquisitions, but organic growth could be substantial, too. A typical post-presidential election lull crimped sales into the massive US broadcast market in 2013, but work for big-spending Al-Jazeera had Middle East broadcast revenue up by half, and heavy investment in wireless technology, plus a new tie-up with America’s TVU, should pay off this year.
VISLINK (VLK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 49p | MARKET VALUE: | £ 56m | |
| TOUCH: | 48-49p | 12-MONTH HIGH: | 53p | LOW: 28p |
| DIVIDEND YIELD: | 2.6% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 44p* | NET CASH: | £3.7m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 53.7 | -6.1 | -0.6 | 1.25 |
| 2010 | 43.1 | -21.7 | -14.1 | 1.25 |
| 2011 | 50.3 | -3.6 | -2.6 | 1.25 |
| 2012 | 57.2 | 2.2 | 1.9 | 1.25 |
| 2013 | 59.9 | 3.1 | 3.1 | 1.25 |
| % change | +5 | +39 | +63 | - |
Ex-div: 26 Jun Payment: 19 Jul *Includes intangible assets of £33m, or 29p per share | ||||
