Vitec Group 1H 2012 Results: Videocom Revenue Up 12.3 Percent, Bexel Down 2.1 Percent

Posted by Joe Zaller
Aug 22 2012

The Vitec Group said that its total revenue for the first six months of 2102 was £176.5m, an increase of 2.7% versus the first six months of 2011, and up 0.7% on an organic basis.

Vitec’s broadcast-focused Videocomm division is made up of more than dozen brands that serve various parts of the broadcast industry: Anton/Bauer, Autoscript, Camera Corps, The Camera Store, Haigh-Farr, Litepanels, Microwave Service Company, Nucomm, OConnor, Petrol Bags, RF Central, Sachtler, Vinten and Vinten Radamec.

For the first six months of 2012 revenue from the Videocom division was £74m, up 12.3% versus the first six months of 2011, and up 5% versus the previous six month period (July to December 2011). These results include a contribution from Haigh-Farr, which was acquired in December 2011, as well as a contribution from Camera Corps, which was acquired in April 2012. On an organic and constant currency basis (excluding Haigh-Farr and Camera Corps), Videocom revenue was up 2.9% versus the first six months of 2011.

Videocom operating profit for the first half of 2012 was £8.4m, an increase of 40% versus last year.  The operating margin for the period was 11.4%, up from 9.1% last year.

The company said that it experienced strong demand in the first half of 2012, particularly in Asia, and it continues to benefit from the increasing number of cameras being sold as a result of the more diverse use of video capture, investments by broadcasters and technological drivers including HD, LED lighting and robotics.

The company highlighted the performance of several it brands, saying:

  • Camera support (Vinten, Sachtler and OConnor) had good growth in both the studio and on-location production segments, particularly in Asia where there was an increase in project-based spending

 

  • Litepanels made further progress in the LED light market as customers continue move to energy efficient and environmentally friendly LED lights, especially in the US.

 

  • Anton/Bauer continued to perform well in its traditional Broadcast and Film markets. It made good progress in the medical carts market where it grew sales of batteries and chargers

 

  • IMT increased its sales of wireless products into the broadcast market in the first half of the year

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Bexel 

For the first half of 2012, revenue from Bexel was £13.9m, down 2.1% versus the first six months of 2011.  On an organic and constant currency basis, Bexel revenue declined 4.1% versus the first six months of 2011.

Bexel’s operating profit was £100,000, up from zero last year.  Bexels’ operating margin was 0.7%

The company attributed the decline in Bexel’s top line to its new focus on larger projects,  and the rationalization of its business structure.  The company said that Bexel will benefit in the second half of the year from its involvement in the 2012 Olympics.

 

Guidance

Vitec said that although the macroeconomic environment remains uncertain and its order book visibility is limited, the company’s expectations for the full year remain unchanged. For the full year 2011, Vitec posted  a pre-tax profit of £33m on revenue of £351m.  At that time the company said it expected progress in 2012, but did not offer a more detailed outlook.

 

“Vitec CEO Stephen Bird said that the company performed well in the first half of the year with an increase in profitability and improvement in margins across all of divisions.  “Our core Broadcast business achieved an encouraging sales performance across the product range.” he said.

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Related Content:

Press Release: The Vitec Group PLC – Half Yearly Report http://dcft.co/Oxsf2S

Vitec Group 2012 Annual General Meeting Presentation  http://dcft.co/TVLK7v

More Broadcast Vendor M&A: Vitec Plc Disposes of Loss-Making Staging Businesses

Vitec Group Says 2012 Trading In Line with Expectations http://dcft.co/JtB6Px

More Broadcast Vendor M&A: Vitec Group Acquires Camera Corps for £8 Million

Vitec 2011 Results: Videocom Up 12 Percent, Bexel Down 7.9 Percent Versus 2010

Previous Year: Vitec Says Videocom Increases 8.7 Percent, Bexel Declines 22.8 Percent During First Six Months of 2011

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