Vitec Group posts record numbers in 'transformational' year

The London-listed firm said its adjusted operating profit was ahead 8% to £44.8m, with adjusted profit before tax 12% higher at £42m.

Adjusted basic earnings per share surged 11.1% to 68.1p compared to 2016.

Vitec confirmed its total dividend per share was up 12.1% year-on-year at 30.5p.

Free cash flow fell to £23.5m from £44.6m, while net debt fell to £42.9m from £75.1m.

On the operational front, Vitec’s board said the year was one of transformation of its portfolio, as it repositioned the group to be able to deliver higher margins and growth.

It disposed of two non-core businesses, funding the acquisitions of JOBY and Lowepro, and RTMotion.

“Vitec is pleased to report a record performance, with strong growth in revenue and adjusted profit before tax,” commented group chief executive Stephen Bird.

“It's been a transformational year for the group, which saw the acquisition of the JOBY and Lowepro brands.

“We launched a record number of market-leading new products and made significant progress refocusing our portfolio with the disposal of two non-core businesses.”

Bird said the company’s imaging solutions division had a strong year, and was continuing to outperform the market.

“The integration of the JOBY and Lowepro brands is going well.

“The production solutions division benefitted from sales of new products, including the revolutionary Flowtech tripod, although the US studio market continued to experience challenging market conditions.

“Our Creative Solutions Division further expanded its higher technology products with the acquisition of RTMotion. SmallHD, in particular, grew strongly.”

Bird said the board had outlined a number of initiatives for medium-term organic growth, particularly in the independent content creator market and in Asia-Pacific, and would continue to identify operational improvements and businesses to acquire in core and adjacent markets.

He added that strong cash generation and a robust balance sheet would support those growth plans.

“Vitec has a strong position in exciting and fast changing markets. With our transformed portfolio of businesses, new structure and growth initiatives, the board remains confident that, at current exchange rates, the Group is well positioned to deliver further progress in 2018.”