Investors sent shares in Vislink (VLK) down 6 per cent after a slump in broadcasting sales dampened top-line growth last year. But the group - whose technology can transmit live, high-definition video from the football pitch to the broadcast studio or between police officers and helicopters - still managed to increase adjusted operating profit by two-thirds to £7.2m.
Vislink's gains reflect its ongoing shift from hardware sales to higher-margin software and security revenues. For instance, a key contract with the Home Office sent surveillance and public safety sales up 35 per cent to almost £16m, and more than doubled UK revenues. Recently acquired broadcasting software group Pebble Beach Systems, meanwhile, grew sales by half to £8.3m in just nine months.
The group introduced a new vehicle-mounted antenna and a long-range, real-time video receiver, and a 44 per cent rise in research spending should pave the way for further innovations. It also inked a deal that will see Pebble's software packaged with US-listed Harmonic's video delivery technology and sold to international broadcasters. And it has partnered with GoPro to enable the bodyworn-camera specialist's HERO4 camera to transmit live, high-definition video. Management effuse that will add a "completely new dimension" to televised sports.
Broker N+1 Singer expects pre-tax profit of £7.7m, giving EPS of 4.5p (from £7.1m and 4.1p in 2014).
| VISLINK (VLK) | ||||
|---|---|---|---|---|
| ORD PRICE: | 48p | MARKET VALUE: | £59m | |
| TOUCH: | 48-49p | 12-MONTH HIGH: | 54p | LOW: 34p |
| DIVIDEND YIELD: | 3.1% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 46p* | NET CASH: | £0.4m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 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 |
| 2014 | 61.9 | 5.4 | 3.2 | 1.50 |
| % change | +3 | +74 | +3 | +20 |
Ex-div: 25 Jun Payment: 17 Jul *Includes intangible assets of £43.7m, or 36p a share | ||||
