Posts Tagged ‘Bexel’

Vitec Group Acquires two Businesses, Grows Broadcast 10% in 1H 2016

Analysis, Broadcast technology vendor financials, Quarterly Results | Posted by Josh Stinehour
Aug 15 2016

The Vitec Group, which owns more than a dozen brands in the broadcast industry as well as technical services company Bexel, released its results for the first half of 2016.  Vitec Group Logo

Total revenue for 1H 2016 was £171.1 million, an increase of 9.7% versus 1H 2015, and an increase of 5.7% when compared to 2H 2015.  Operating profit was £12.6 million, a decrease of 8.7% versus 1H 2015, and a 41.7% decrease against 2H 2015.  On a constant currency basis, revenue increased 3.1% and operating profit increased 5.2% on a year-over-year basis.

Operating profit declined despite the revenue growth because of non-repeat, high-margin Haigh-Farr antennas contracts in the comparison period (1H 2015) and a greater mix of lower margin broadcast services business during the first six months of 2016.

Operating profit is reported before costs associated with the acquisition of business ($2.7 million during 1H 2016), restructuring (£2.8 million in 1H 2016), and also the £0.7 million gain on sale of The Vitec Group’s manufacturing facility in Bury St Edmunds.  Vitec indicated the restructuring activities initiated in 2015 resulted in savings of £2.5 million in the first six months of the year.

Vitec Acquisitions:

Vitec acquired two businesses in the first half of 2016.  In January Vitec purchased Provak Foto Film Video B.V., a Netherlands distributor partner for cash consideration of £0.9 million.  On April 12, 2016, Vitec’s Broadcast Division acquired Offhollywood Digital for upfront cash consideration of £1.6 million along with contingent compensation of up to $8.0 million (USD) if gross profit targets are met for the periods to December 2018.  Offhollywood Digital provides camera-back modules for RED cameras along with related services.

Vitec often structures its acquisitions with contingent consideration.  During the period Vitec made yet another payment in the amount of £2.8 million on the earn-out related to the 2013 acquisition of Teradek.

Vitec Broadcast Division:

Vitec’s broadcast brands serve various parts of the broadcast industry: Anton/Bauer, Autocue, Autoscript, Bexel, Camera Corps, Haigh-Farr, Litepanels, OConnor, Paralinx, Petrol Bags, Sachtler, SmallHD, Teradek, The Camera Store, and Vinten.

Vitec reports the results of its Broadcast Division separate from its Photographic division. For the first half of 2016, the Broadcast Division represented 60.0% of The Vitec Group’s total sales.  In 1H 2015 and 2H 2015 the Broadcast Division accounted for 60.0% and 59.0%, respectively.

The below slide is taken from the Vitec Group earnings presentation and offers a summary on the key developments with the Broadcast Division in the first half of 2016.

Vitec-slide

The Broadcast Division had revenue of £102.3 million in 1H 2016, an increase of 10.0% versus 1H 2015 (an increase of 4.0% on constant currency basis), and an increase of 6.6% compared to the preceding period, 2H 2015.

In the Company’s release, management noted strength in the US market, which offset a more challenging environment in the EMEA region.

Positive currency benefits from a weaker British pound accounted for 60% of the Broadcast Division’s growth in 1H 2016.  Given the currency volatility stemming from the recent EU referendum in the UK, The Vitec Group expects to realize a net currency benefit in the second half of 2016.  Management indicated the hedges it maintains on the GBP to USD and GBP to EUR exchange rates will also delay part of the impact of a weaker GBP into the 2017 fiscal year.

Product sales for the Broadcast Division were £78.7 million for 1H 2016, an increase of 0.5% over 1H 2015, and a decrease of 4.0% over 2H 2015.  As a percentage of Broadcast Revenue, Products sales accounted for 76.9% of revenue in 1H 2016.  This compares to 84.6% in 1H 2015 and 85.4% during 2H 2015.

Within Product sales management highlighted the increased sales of wireless transmitters and receivers, camera monitors, and mobile power.  The US market was especially strong for broadcast battery products.  These results were offset by a decrease in large camera support sales.

Services sales from Vitec’s Bexel subsidiary were £23.6 million in 1H 2016, an increase of 66.2% versus 1H 2015, and an increase of 62.8% against 2H 2015.  Services represented 23.1% of Broadcast revenue during 1H 2016.  In 1H 2015 Services were 15.4% of sales and during 2H 2015 Services were 15.1% of Broadcast Revenue.

The strong growth in Services was due to a large contract with the NFL for project management and support to upgrade the communication infrastructure for all 31 NFL stadiums. The contract includes the pass-through of low margin products impacting the profitability of the Broadcast Division.

Operating profit for the Broadcast Division in 1H 2016 was £8.5 million, a decrease of 12.4% versus the 1H 2015 result (down 10.0% on constant currency basis), and a decrease of 34.6% against 2H 2015. In addition to the greater concentration with Services, operating profit was also negatively impacted by Vitec’s continued investment in the development of its wireless products and camera monitor business.

Operating margin for the Broadcast Division was 8.3% during the first half of 2016, a decrease of 220 basis points against 1H 2015, and a decrease of 600 basis points compared to 2H 2015.

 

Business Outlook:

Commenting on the first half results and outlook for the full year, Group Chief Executive Stephen Bird offered the following, “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.”

 

Related Content:

Press Release: Vitec Group 1H 2016 Results

Presentation: Vitec Group 1H 2016 Results

 

 

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Vitec Group has Positive Start to 2016; Set to Benefit from Weaker GBP

Analysis, broadcast technology market research, Broadcaster Financial Results | Posted by Josh Stinehour
Jul 01 2016

The Vitec Group, which owns more than a dozen brands in the broadcast industry as well as technical services company Bexel, released a trading statement on its first half 2016 performance.  Vitec Group Logo

Vitec’s year-to-date performance in 2016 has been in line with the Board’s expectations (Vitec does not provide specific forecast guidance).  The Company’s expectations for 2016 remain unchanged.  First half 2016 results are scheduled for release on August 4, 2016.

The trading update reiterated management’s expectations to benefit from the Rio 2016 Olympics and ongoing restructuring activities.  During the 2015 calendar year, one-off costs associated with the continued restructuring were approximately £10 million.  The restructuring costs were predominantly attributable to streamlining activities in the Broadcast Division.

In addition, the press release referenced the opportunity to benefit from a weaker GBP versus the US Dollar and Euro.

The press release states that full year expectations remain unchanged based on exchange rates as of June 23, 2016.  This was the date of the “Brexit” referendum in the UK.  Since the results of the referendum the GBP has declined more than 10% versus the US Dollar and approximately 9% versus the Euro.

In terms of revenue profile, Vitec generated only 10% of 2015 revenue from the UK.  47% of 2015 revenue was from North America and 20% from Continental Europe.  Because of this revenue profile, Vitec’s revenue results for 2016 should benefit from a weaker GBP currency.

 

Related Content:

Vitec press release on trading update

Vitec 2015 Financial Results

 

 

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Vitec Group 2015 Growth Driven by M&A Activity

Analysis, Broadcast technology vendor financials, Quarterly Results | Posted by Josh Stinehour
Feb 29 2016

The Vitec Group, which owns more than a dozen brands in the broadcast industry as well as technical services company Bexel, released its results for 2015.Vitec Group Logo

Total revenue was £317.8 million, an increase of 2.6% versus 2014.  Operating profit was £35.4 million, a decline of 8.8% versus last year.  On a constant currency basis, revenue increased 1.3% and operating profit decreased 1.8%.

In the earnings release, management highlighted the negative impact of currency, the disposal of IMT during 2014, and the softness in comparisons against 2014 given the non-repeat of large events.

Stephen Bird, Group Chief Executive commented, “We have continued to invest additional resources in driving new product sales in line with our strategy. As expected, the full year results reflect the non-repeat of the 2014 Sochi Winter Olympics and FIFA World Cup, and an anticipated negative impact from foreign exchange. There was growth in revenue and operating profit over the prior period excluding these items. The Group is making good progress in streamlining certain activities with lower growth prospects, with some further actions being taken to drive profitable growth.”

Vitec also announced it has sold its main UK Broadcast manufacturing site in Bury St Edmunds.  The proceeds from the sale were £3.9 million.  Vitec is planning to move the business to a smaller leased facility in the same region.  In recent years, Vitec had transitioned a significant amount of its manufacturing to Costa Rica.

 

Vitec Broadcast Division:

Vitec’s Broadcast brands serve various parts of the broadcast industry: Anton/Bauer, Autocue, Autoscript, Bexel, Camera Corps, Teradek, Haigh-Farr, Litepanels, OConnor, Paralinx, Petrol Bags, Sachtler, SmallHD, Vinten and Vinten Radamec.

The Broadcast Division had revenue of £189.0 million in 2015, an increase of 10.5% versus 2014 when excluding the divested IMT’s revenue from 2014 (and up 7.0% on constant currency basis).

Vitec’s acquisitions of Paralinx (February 2015) and SmallHD (December 2014) contributed approximately 75% of the revenue increases over 2014.

Given the positive contribution from companies acquired through M&A actions, Vitec highlighted its acquisition track record in its presentation to investors.

 

Vitec FY Presetnation - highlights M&A

 

Remarking on the Broadcast Division results, CEO Stephen Bird stated, “The Broadcast Division performed satisfactorily in variable market conditions. Our higher technology product businesses are performing well, including further strong growth of our wireless products. This partially offset lower sales of large camera supports, the non-repeat of major sporting events, and investments in the future growth of our higher technology businesses.”

Bird continued, “Broadcast Market continues to show some variability in demand with customers remaining cautious this is impacting large project activity.  The US market has been more positive and Japan is performing well.  However, conditions in EMEA are more challenging.”

Operating profit for the Broadcast Division in2015 was £20.3 million, a decrease of 4.2% versus the 2014 result (down 1.3% on constant currency basis).  Operating profit is stated before restructuring costs and charges associated with acquired businesses.

Restructuring costs for 2015 were predominantly attributable to streamlining activities in the Broadcast Division.

These activities were announced as part of Vitec’s first half earnings release.  Additional streamline actions for the entire company were announced in the year-end earnings release.

In aggregate, one-off costs associated with the continued restructuring are approximately £10 million, an increase from Management’s previous estimate of £6 million.  The restructuring is focused on the UK, US, and Europe operations and will be completed by the end of 2016.

 

 

 

Related Content:

Press Release: The Vitec Group plc 2015 Full Year Results

The Vitec Group plc. Full year results 2015 Presentation

Vitec Group Announces Intention to Divest IMT Wireless Communications and Microwave Business

Vitec Group Broadcast Revenue Up 6.3 Percent in 2014; Changes Reporting Structure to Focus on Core Businesses

Broadcast Vendor M&A: Vitec Group Buys SmallHD for up to $30 Million in Cash

 

 

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Vitec Group 1H 2013 Results: Videocom Revenue Down 5.1 Percent, Bexel Flat

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Sep 04 2013

The Vitec Group said that its total revenue for the first six months of 2013 was £157.6m, a decrease of 10.7% versus the first six months of 2012.

Vitec said that on an organic basis at constant currency, its revenue was down 9% versus the first half of 2012, and that after adjusting for the London Olympics and the disposal of the Staging business the underlying sales run rate was similar to the second half of 2012.

Despite the lower revenue, on an overall basis the company posted an increase in operating profit and profit before tax of 4.8% and 0.6% respectively.

 

Vitec Videocom Division

The company said broadcast-focused Videocomm division performed well in a challenging Broadcast & Video market.

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 2013 revenue from the Videocom division was £70.2m, down 5.1% versus the first six months of 2012, and down 3% versus the previous six month period (July to December 2012).

Videocomm order intake was only modestly behind prior year with sales reflecting the timing of shipments.

Videocom operating profit for the first half of 2013 was £8.7m, an increase of 3.6% versus last year.  The operating margin for the period was 12.4%, up from 11.4% last year.

The company attributed the increased operating margin to cost control measures and the initial benefit of restructuring activities, which it said was progressing well. Restructuring within the Videocom division includes the relocation of certain manufacturing activities to Costa Rica and the streamlining of broadcast and MAG operations in the United States.

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

  • Our camera supports brands (Vinten, Sachtler and O’Connor) continued to trade well. We have grown our sales of robotic products following increased project activity in EMEA and Asia and our Sachtler range of supports continues to show good growth.

 

  • Our Litepanels LED lighting products benefited from growth in the Asian market. We are in the process of broadening the product range to enable us to maintain our leading position in the market.

 

  • Our Anton/Bauer mobile power products experienced a challenging video market but continued to make progress in supplying batteries and chargers to power medical carts in hospitals.

 

  • Camera Corps, acquired in April 2012, is trading in line with expectations although the lack of significant sporting events this year means that we expect a lower level of sales activity. This is in comparison to 2012 where the business benefited from the UEFA Euro 2012 football championships in the first half and the London Olympics in the second half of the year.

 

  • Our MAG sales grew during the first half benefiting from a $5.8 million US Department of Justice award for transmitters and receivers. We continue to bid for significant opportunities, whilst recognizing that the timing of major awards from US Government agencies is difficult to predict.

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Vitec Services Division (Bexel)

For the first half of 2012, revenue from Vitec’s Services Division, which primarily comes from Bexel, was £13.8m, essentially flat with the first six months of 2012.  On an organic and constant currency basis, Bexel revenue declined 3.5% versus the first six months of 2012.

The company said that these results were in line with expectations and that Bexel had made good progress on its strategy of working closely with key customers and supporting projects where the business can add most value.  As the result of this focus, as well as a rationalization of the business structure, the operating profit at Bexel doubled to £200,000 for the first six months of 2012. Bexel’s operating and margins were up by 70 bps to 1.4%.

 

“Vitec CEO Stephen Bird said that the company’s Videocom Division had” performed well in a challenging market and the Division’s MAG results benefited from a $5.8 million contract with the U.S. Department of Justice. The Imaging Division made good progress despite the continuation of the more challenging market that started to impact us in the second half of last year. The Imaging Division continues to grow its market share and this will be supported by new product launches planned for later this year.”

Bird said that Vitec is on target to deliver the significant cost reductions outlined in its 2012 full year results announcement, and that the company will supplement these savings with specific rationalization actions within our Imaging and Services Divisions I order to deliver further attractive returns.

“Our longer-term growth prospects continue to be positive and we are well positioned to benefit from any upturn in our markets,” said Bird. “Our order visibility remains limited but our first half year performance was consistent with our normal phasing and we are on track to meet our full year expectations.”

 

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Related Content:

Press Release: The Vitec Group plc Half Year Results to 30 June 2013

Vitec Group 1H 2013 Earnings Presentation

Broadcast Vendor M&A: Vitec Buys Teradeck for $15 Million

Vitec Group Says 2013 Trading In-line with Expectations, Videocom Markets Remain Challenging

Vitec Group 2012 Annual Report (published March 2013)

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

Vitec 2012 Results: Videocom Revenue Up 7.3 Percent, Bexel Doubles Operating Profit as Revenue Increases 4.4 Percent

Previous Interim Statement: Vitec Group Says Trading In-line with Expectations Despite Challenging Macroeconomic Environment

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Vitec Group Says 2013 Trading In-line with Expectations, Videocom Markets Remain Challenging

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
May 21 2013

The Vitec Group said in an interim management statement that its trading results for the first four months of 2013 have been in-line with its expectations.

However, the company said that the “macroeconomic environment remains challenging and we continue to control our costs accordingly. The streamlining of certain of our operations, outlined in our 2012 full year results announcement, is progressing in line with our plans. Although our order book visibility is limited, the Board’s expectations for the full year remain unchanged.”

Vitec said that its broadcast-focused Videocom division “performed satisfactorily in what continues to be a challenging market.”

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.

Broadcast equipment rental and services provider Bexel is also part of Vitec’s Videocom division.

The Vitec Group’s revenue for the full year 2012 was £345.3m, down 1.6% versus last year. The company’s 2012 profit before tax and acquisition-related costs was £36.2m., up 10% versus 2011.

Full year 2012 revenue for Vitec’s division was £146.2m, up 7.3% versus 2011.  Videocom operating profit for the year was £15.8m, up 24.4% versus last year. Videocom operating margin was 10.8%, up 1.5 percentage points versus 2011.

The company said that demand for Videocom products was driven by greater use of video capture, investments by broadcasters and technology drivers, as well as by the 2012 Olympics and the US elections.  However, it cautioned that Videocom order visibility is limited.

As of April 30, 2013, the Vitec Group had net debt of £66m, compared to net debt of £63.7m on December 31, 2012.

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Related Content:

Press Release: Vitec Group – Interim Management Statement

Vitec Group 2012 Annual Report (published March 2013)

Vitec 2012 Results: Videocom Revenue Up 7.3 Percent, Bexel Doubles Operating Profit as Revenue Increases 4.4 Percent

Previous Interim Statement: Vitec Group Says Trading In-line with Expectations Despite Challenging Macroeconomic Environment

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Vitec 2012 Results: Videocom Revenue Up 7.3 Percent, Bexel Doubles Operating Profit as Revenue Increases 4.4 Percent

Broadcast technology vendor financials | Posted by Joe Zaller
Mar 05 2013

Vitec 2012 Results: Videocom Revenue Up 7.3 Percent, Bexel Doubles Operating Profit as Revenue Increases 4.4 Percent

UK-based Vitec Plc, which owns a dozen companies in the broadcast industry, announced that its revenue for the full year 2012 was £345.3m, down 1.6% versus last year. However the company’s profit before tax and acquisition-related costs rose 10% versus 2011 to £36.2m.

As shown below in a slide from the company’s investor presentation, Vitec operates in several markets, including broadcast, photographic and government / military.  This post looks only at those that relate to the broadcast industry – the company’s “Videocom” and “Services” divisions, which sell primarily to broadcast industry customers.  The Services Division is comprised entirely of equipment rental specialist Bexel.

 

Vitec at a AGlance 2013

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Videocom Revenue up 7.3 Percent for the Year

Videocom revenue for 2012 was £146.2m, up 7.3% versus 2011.  Organic revenue at constant currency decreased by 3.1%, due to the non-recurrence of a £4.9m sale related to FCC wireless auctions. Videocom operating profit for the year was £15.8m, up 24.4% versus last year. Videocom operating margin was 10.8%, up 1.5 percentage points versus 2011.

The company said that demand for Videocom products was driven by greater use of video capture, investments by broadcasters and technology drivers, as well as by the 2012 Olympics and the US elections.  However, it cautioned that Videocom order visibility is limited.

Vitec Broadcast Products

Vitec Broadcast Products

Vitec said that its acquisition of Haigh-Farr in December 2011 and Camera Corps in April 2012 made “notable contributions to 2012 revenue”

The company said that Camera Corps Camera Corps which provides small systems that are predominantly used at major sporting events, benefitted from the UEFA Euro 2012 football championships and more significantly the London 2012 Olympics, and delivered “a better than expected post-acquisition performance.”

Camera Corps contributed £7m of revenue in 2012 (5% of total Videocom revenue), and an operating profit of £2.3m (15% of total Videocom operating profit). Vitec said that Camera Corps full year 2012 revenue and operating profit were £7.6m and £2.3m respectively.

The company said that its Haigh-Farr antenna business also performed ahead of pre-acquisition expectations, and that it paid out £1.2m of contingent earn-out payments to the division’s former owners.

Vitec said there it experienced growth in sales of outside broadcast and video camera supports as well as our range of bags for this market. However, demand for premium studio and robotic camera supports in the key US broadcast market was affected by budget constraints at the major studios and there was no repeat of the sizeable 2011 contracts to supply television studios in Asia.

Litepanels benefitted from the launch of new products that broadened its product ranges and enabled it to maintain our leading position in the market.

Anton/Bauer consistently overall and made good progress in supplying batteries and chargers to power medical carts in hospitals.

The IMT microwave transmitter and receiver business, had what the company called “a challenging year,” and Vitec said there is limited order visibility in this market due to a low level of investment by US Government customers.

Vitec said that it had taken a one-off, non-cash, £8.8m impairment charge to fully impair its investment in IMT.

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Bexel 2012 Revenue Up 4.4 Percent, Operating Profit Doubles

2012 revenue from Bexel, Vitec’s Services Division, was £33m, up 4.4% versus 2011. The company attributed the y-y gain to the 2012 Olympics and the US elections, and highlighted the fact that Bexl plays an “important role in driving sales of other divisions’ products.”

Compared to last year, Bexel’s 2012 operating doubled to £1.2m, and its operating margin increased by 1.7 percentage points to 3.6%.

Vitec announced last year that it would re-organize Bexel to help it focus on larger events, where higher levels of service are most needed, and to secure multi-year contracts for these events. The company now says it is focus the Bexel business on increasing margins and cost control.

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Related Content:

Press Release: The Vitec Group PLC – 2012 Full Year Results

Vitec Group 2012 Full Year Results Investor Presentation

Vitec Group Says Trading In-line with Expectations Despite Challenging Macroeconomic Environment

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

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

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

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

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

Broadcast technology vendor financials, Quarterly Results | 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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Vitec Group Says 2012 Trading In Line with Expectations

broadcast technology market research | Posted by Joe Zaller
May 08 2012

UK-based Vitec Plc, which owns a dozen companies in the broadcast industry, said in an interim management statement that its trading in the first four months of 2012 has been in line its expectations.

The company also said that its expectations for the full year remain unchanged, despite concerns about the macroeconomic environment and limited order book visibility. In its most recent earnings release, Vitec said it made a pre-tax profit of £33m on revenue of £351m for the full year 2011.  At that time the company said it expected progress in 2012, but did not offer a more detailed outlook.

Vitec said its has experienced good demand in its Videocomm  business, which includes Anton/Bauer, Autoscript, Litepanels, Microwave Service Company, Nucomm, OConnor, Petrol Bags, RF Central, Sachtler, Vinten, and Vinten Radamec.

Vitec also said its Services Division (Bexel) has made a good start to the year and is well placed to benefit from the London 2012 Olympics.

At 30 April 2012, Group net debt was £59.7 million, after the acquisition of Camera Corps for approximately £8.0 million, compared to net debt of £50.4 million at 31 December 2011.

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Related Content:

Vitec Plc, Interim Management Statement – May 8 2012

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

Vitec 2011 Investor Presentation

Vitec 2011 Annual Report

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

Broadcast Vendor M&A | Posted by Joe Zaller
Apr 12 2012

Vitec Group has acquired the entire share capital of Camera Corps Limited for approximately £8m.  Vitec said it financed the deal via existing banking facilities. Camera Corps will operate within Vitec’s Videocom Division and its existing senior management, including the founder, Laurie Frost, will remain with the business.   

UK-based Camera Corps provides specialty remote camera systems, tracking, support systems and full service facilities to broadcasters.

Vitec company Bexel is an existing distributor of Camera Corps Q-Ball camera system.

According to Vitec CEO Stephen Bird “the acquisition is in line with our strategy of helping our customers capture exceptional images. There is a growing appetite among consumers for more unusual and interesting camera angles and Camera Corps is a world leader in helping broadcasters capture these moments.”

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Related Content:

Vitec Press Release: ACQUISITION OF CAMERA CORPS

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

Vitec 2011 Investor Presentation

Vitec 2011 Annual Report

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

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Mar 05 2012

UK-based Vitec Plc, which owns a dozen companies in the broadcast industry, announced that recorded pre-tax profit of £33m on revenue for the full year 2011 was £351m

As shown below in a slide from the company’s investor presentation, Vitec operates in several markets, including broadcast, photographic and government / military.  This post looks only at those that relate to the broadcast industry – the company’s “Videocom” and “Services” divisions, which sell primarily to broadcast industry customers.  The Services Division is comprised entirely of equipment rental specialist Bexel.

 

Videocom Revenue Grows 12 Percent in 2011

Videocom revenue for 2011 was £136.2m, up 12% versus 2010.  Revenue grew 18.4% on an organic basis after adjusting for the acquisition of antennae specialist Haigh-Farr and the disposal of Clear-Com in the prior year.  Operating profit for the year was £12.7m, up 51.2% or 31.0% in organic constant currency terms.

The company said that sales of camera supports, prompters and bags products grew strongly in 2011, and that it received significant orders for the Sachtler Ace range of supports that was launched in September 2011 specifically for the business and industry user.

The continued adoption of LED lighting technology by major US, European and Asian broadcasters in both studio and news gathering applications was a strong driver for the company’s Litepanels business, which Vitec said grew by approximately 20% in 2011.

Vitec also said that its Anton/Bauer business grew strongly in 2011 driven by sales of batteries and chargers for traditional broadcast and film users, as well as achieving initial success in a new market of supplying batteries and chargers to power carts in hospitals.

The company also said that its IMT microwave systems business continued to win business in the broadcast market with noteworthy success in the US, Turkey, Russia and Brazil; and that its sales were up in the sports and entertainment segment in the US where this equipment is used to interview teams and their fans.

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Bexel Declines 7.9 Percent in 2011, Re-Focused for 2012

2011 revenue from Bexel, Vitec’s Services Division, was £31.6m, down 7.9% versus 2010, when the Winter Olympics were a strong revenue driver for Bexel. Operating profit for the year was £600,000, up from £400,000 in 2010 and included higher asset sales including one-off revenue and profits from the sale of a large system to a major customer.

Vitec says undertook a reorganization of Bexel in 2011, which included the closure of the Seattle branch office, the consolidation of engineering and logistics resources, and the establishment of a national sales team in the US to focus on key accounts.  The company says these changes will help Bexel to focus on large events such as major sporting and entertainment events, and to better serve of US and international clients.

Vitec says Bexel strengthen its relationship with US sports broadcaster ESPN during 2011, and that it is prepared for the 2012 Olympics in London.

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Related Content:

Press Release: The Vitec Group plc 2011 Full Year Results

Vitec 2011 Investor Presentation

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

Previous Year: Vitec Announces 2010 Results: VideoCom Revenue Falls, Services Post Strong Increase

 

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