Vitec´s interim revenues get a kick from weak sterling

Broadcast and photographic service provider Vitec’s revenue grew in the first half of the year, in line with expectations, as it benefitted from weak sterling.

For the six months ended 30 June, revenue increased by 9.7% to £171.1m and operating profit increased by 6.1% to £17.4m, compared to the same period last year. This was due to a weak sterling, as at constant exchange rates revenue grew 3.1% while operating profit declined 5.2%.

Profit before tax increased by 6% to £15.5m. Adjusted earnings per share increased by 6.5% to 24.5p per share.

The company’s broadcast division revenues grew by 10.6% due to a combination of continued revenue expansion in higher technology products and the benefit from the FX tailwind, which was partly offset by lower revenue in the higher margin Haigh-Farr antennas business as contracts did not repeat. The division's operating profit fell by 12.4%.

The photographic division’s sales increased by 8.5% due to recently launched new product ranges, growth through its own distribution channels and favourable foreign exchange too. Operating profit grew by 32.8%.

In the first half of the year 48%, of revenues came from North America, with the remainder split between Europe 31%, Asia-Pacific 18%, and the rest of the world at 3%.

Chief executive Stephen Bird, said: “The board's expectations for the full year are unchanged. We anticipate that the group's performance in the second half of the year will benefit from the Rio 2016 Olympics, full year savings from the previously announced restructuring plans, and, potentially, from weaker sterling."

The company also said it was monitoring the risks and certainties in light of the Brexit result from the EU referendum.

Shares in Vitec were up 4.63% to 565p at 12:02 BST.