UK-based Vislink plc, reported that its revenue for 2013 was $99.3m (£59.9m), up 4.7% versus 2012.
Broadcast industry revenue was $79.7m (£48.1m), up 2.2% versus 2012.
Vislink owns multiple broadcast brands including Advent, Link, MRC and Gigawave. Earlier this month Vislink announced it had acquired playout automation provider Pebble Beach for $24.7m.
On a group basis (including both broadcast and government sectors):
- 2013 operating profit of $7.1m (£4.3m), an increase of 40.3 per cent increase compared to 2012
- Gross margins were 40.6% in 2013, up from 39.4% in 2012
- Order intake for the year was $99.6m (£60.1m), and the company ended the year with an open order book of $9.3m (£5.6m), up 7.7% versus the end of 2012
Vislink’s broadcast products include satellite terminals and wireless communication systems that are used live events such as news, sports, and entertainment.
2012 broadcast revenue was £48.1m, up 2.2% versus 2012. Broadcast revenue accounted for 80.3% of total group revenue, down from 82.3% of total group revenue in 2012.
Revenue from Pebble Beach is not included in these figures.
For the broadcast business, the company’s geographic performance was as follows:
On a percentage basis the company’s best performing region was the Middle East and Africa, where sales jumped 49% versus the previous year.
The UK market decline 19.3% in 2013 after a strong performance in 2012, driven in part by the London Olympics. The company had slight growth in the rest of Europe, and experienced a decline in APAC.
2013 broadcast revenue in the Americas was down 10.1% versus 2012. Vislink attributed this decline to cyclicality, saying “the US broadcast marketplace typically sees a reduction in spend in a post presidential election year.” At the same time however, the company specifically highlighted the importance of South America, saying that the 2014 World Cup and 2016 Olympics have provided “an impetus for further investment in both broadcast and surveillance.”
Acquisition of Pebble Beach
The company used its earnings announcement to highlight its recent $24.7m acquisition of playout automation provider Pebble Beach, saying it will “contribute to the strategy of achieving higher recurring services revenues and achieving our financial objectives of £80m revenue and £8m adjusted operating profit by the end of FY 2014.”
Vislink said the key benefits of Pebble Beach are leading software technology, recently developed next generation products, a growing customer base, and strong cash generation and growth prospects.
The company said the acquisition of Pebble Beach “fits perfectly with Vislink’s desire for growth, recurring revenues, extending its reach and providing customers with synergies, from capturing video to interactive programming, including acquisition and revenue generation. Vislink plans to grow its software capability around the Pebble Beach Systems and management team.”
Move to AIM Market Eases Burden of Future M&A
Following on from the recent acquisition of Pebble Beach, Vislink telegraphed its intention to do more M&A deals in the future, saying the company will “continue to seek growth opportunities both organically and through acquisitions, with a clear underlying objective of continuing to grow shareholder value.”
“We remain on track for our plan to grow the business to £80m, and £8.0m adjusted operating profit by the end of FY 2014, and we intend to support this by way of a number of “bolt on” acquisitions,” said Vislink chairman John Hawkins.
Significantly, during 2013 Vislink switched its stock market listing to the UK’s AIM exchange, the London Stock Exchange’s international market for smaller growing companies. Vislink says that the move to the AIM exchange will “simplify and reduce the financial burden of making acquisitions.”
Strategy and Outlook:
The company said its “markets continue to be tough but as long as we continue to balance our revenues and maintain our product leadership, the group will grow profitably.”
Vislink said it plans to expand its capability in delivering recurring revenues by exploiting its “newly acquired software capability in video playout” (Pebble Beach), and will grow our services offering by developing our network capabilities in cellular and hybrid application areas.
Vislink finished the year with $6.1m (£3.7m) in cash, down from $13.4m (£8.1m) at the end of 2012. The company said it has more than 250 employees worldwide.
Press Release: Vislink plc – Results for the year ended 31 December 2013
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