Brisk demand for broadcasting equipment during the Winter Olympics and FIFA World Cup in 2014 was a blessing that became a burden for Vitec (VTC). The camera-maker struggled to grow in 2015, a year with few marquee events. But strip out currency movements and the impact of those two competitions and operating profits inched up 2 per cent to £39.5m in the reported period.
Constant-currency sales climbed 7 per cent in the key broadcasting division. That reflected a stronger US market and the rollout of new products for independent videographers such as the Teradek VidiU Pro - a portable device that allows users to live-stream videos on the internet. Management took similar steps in the photography business as it weathered further declines in demand for interchangeable lens cameras. It launched Manfrotto Digital Director, which lets people use an iPad to control their cameras. But sales, marketing and e-commerce investments meant divisional operating profits slid by a tenth.
Vitec's restructuring costs ballooned by more than four-fifths to £4.9m as management streamlined the business. But its efforts generated £0.5m in savings and total costs - pegged at £10m - should be recouped in two years.
Broker Investec expects a boost from the Rio Olympics and US Presidential election in 2016. It forecasts EPS of 55.3p this year, up from 49.2p in 2015.
| VITEC (VTC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 532p | MARKET VALUE: | £237m | |
| TOUCH: | 520-535p | 12-MONTH HIGH: | 670p | LOW: 526p |
| DIVIDEND YIELD: | 4.6% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 284p* | NET DEBT: | 60% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 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 |
| 2015 | 318 | 18.5 | 29.3 | 24.6 |
| % change | +3 | -8 | - | +3 |
Ex-div: 21 Apr Payment: 20 May *Includes intangible assets of £90.7m, or 204p a share | ||||
