Sports fans weren't the only ones cheering during last year's FIFA World Cup and Winter Olympics. Vitec (VTC) landed several big contracts for its camera equipment and technical support with event broadcasters, helping it post a 3.3 per cent rise in constant-currency revenues. Coupled with a tight grip on costs, that sent operating profit - excluding restructuring and acquisition charges - up 7 per cent.
Vitec's gains stemmed from strong sales and profit growth in its broadcast division, reflecting key sporting contracts and strong sales of Teradek Bolt, its new high-quality wireless video transmitter. But revenues slid 2 per cent at Vitec's photographic segment, which provides camera accessories such as tripods and Manfrotto bags to professional photographers and shuttlebugs. That's partly because improvements in camera technology have been limited, depressing demand for new kit.
Vitec's recent restructuring programme - including cutting costs and selling the loss-making US business IMT - pushed operating expenses down 9 per cent to £90m. The group also bolstered its growth prospects by acquiring specialty camera assets from SIS, enabling it to broadcast a view from the stumps in cricket matches, for example.
Broker Investec Securities forecasts pre-tax profit of £35.7m, giving EPS of 56.4p (from £35.3m and 55.8p in 2014).
| VITEC (VTC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 645p | MARKET VALUE: | £286m | |
| TOUCH: | 626-645p | 12-MONTH HIGH: | 688p | LOW: 539p |
| DIVIDEND YIELD: | 3.7% | PE RATIO: | 22 | |
| NET ASSET VALUE: | 268p* | NET DEBT: | 60% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 310 | 21.7 | 42.8 | 19.0 |
| 2011 | 351 | 23.8 | 34.7 | 20.5 |
| 2012 | 345 | 16.1 | 13.6 | 22.0 |
| 2013 | 315 | 20.4 | 31.9 | 23.0 |
| 2014 | 310 | 20.1 | 29.4 | 24.0 |
| % change | -2 | -1 | -8 | +4 |
Ex-div: 16 Apr Payment: 15 May *Includes intangible assets of £87m, or 197p a share | ||||
