Business
Trading Update - Continued Progress
Trading Update - Continued Progress.
About this update from Videndum Plc
[{"type":"text","content":"\n \nRNS Number : 6653E The Vitec Group PLC 10 May 2017 \n\n \n \nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO THE SAME WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION. THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.\n \n \n10 May 2017 \nThe Vitec Group plc\nTrading Update\n \nContinued Progress\n \nThe Vitec Group plc (\"Vitec\" or the \"Group\"), the international provider of products and services for the Broadcast and Photographic markets, provides the following update on trading for the first four months, the disposal of Haigh-Farr, Inc. and full year outlook. \n \nCurrent trading performance\nThe Board is encouraged with performance during the period from 1 January 2017 to 30 April 2017. Positive momentum has been maintained and we are performing slightly ahead of our expectations, mainly due to continued organic sales growth and a further benefit from foreign exchange. \nOur higher technology broadcast businesses continued to grow, supported by a number of new product launches. The Photographic Division has started the year well and continued to outperform the market.\nDisposal of Haigh-Farr, Inc.\nOn 9 May 2017 we sold our non-core Haigh-Farr defence antennas business based in New Hampshire, USA, to Haigh-Farr Acquisitions, Inc., which is owned by Haigh-Farr's current management, David and Norene Farr. This deal was completed for an initial cash consideration of $15.8 million (£12.2 million); there is a further potential earn-out of up to $10 million in cash depending on future performance of the business. The net cash proceeds will be used to pay down Group borrowings.\nHaigh-Farr generated an operating profit of $2.1 million (£1.5 million) in 2016 on sales of $12.9 million (£9.6 million). As at 31 December 2016, net assets1 were $20.8 million (£16.8 million) and gross assets1 were $22.8 million (£18.4 million). The disposal is expected to be slightly dilutive to adjusted earnings per share for the current financial year.\nThis disposal allows Vitec to continue to focus on driving growth in its core, premium branded broadcast and photographic markets. \nNet debt\n \nVitec's balance sheet has been furt...