The Group has had a strong year with increased operating profit and growth in underlying sales and orders. The Board expects the Group's adjusted operating profit for 2007, being operating profit before the amortisation of acquired intangibles, to be in line with market forecasts of £15.5 million (2006 - £14.3 million) after absorbing the impact of foreign exchange on translation of £0.8 million.
Underlying orders received (note 1) were up 10% to £106 million (2006 - £96.4 million). Underlying sales (note 2) increased by 7% to £101 million. Headline sales were £98 million (2006 - £100.5 million).
2007 Trading
Our UK business continues to grow in the international broadcast markets through the increased distribution of Link Research's High Definition wireless camera products and Advent's growing share of the satellite news gathering market. The US broadcast market for digital electronic news-gathering products and services continued to be strong for MRC, our US business. WTS, our recent acquisition has made a small contribution to the Group's profits, in line with expectations.
Hernis, our Norwegian specialist marine safety and security business, has had another record year.
2008 Outlook
The Group has started the year with an order book of £36 million (2006 - £34.7 million). Hernis, with the continuing demand from investment by the global offshore and marine oil and gas markets expects good sales growth. The Group is also confident of increased sales in the defence, law enforcement and security markets as we capitalise on the investments made during 2007.
Overall, sales growth is expected in 2008, although the weakness of the US dollar increases the costs of UK product shipments for the US market with some consequent pressure on margins.
Commenting, Ian Scott-Gall, Chief Executive said: "The Board is looking forward to 2008 with confidence. We have a strong balance sheet and are looking to strengthen the Group with suitable strategic acquisitions, through the development of the regional sales offices in the important Middle and Far East markets and through increased investment in research & development."
Enquiries
Ian Scott-Gall, Chief Executive, Vislink plc, Tel: 01488 685500
James White, Hudson Sandler, Tel: 0207 796 4133
Notes to Editors
Vislink plc is a leading supplier of microwave radio and satellite transmission products for the broadcast and security markets and of CCTV systems for the marine security market.
Note 1: Underlying orders are defined as orders adjusted to 2006 foreign exchange rates (an adjustment of £5 million) and exclude orders associated with the completed Venezuelan legacy contract of £nil (2006- £1.1 million).
Note 2: Underlying sales are defined as sales adjusted to 2006 foreign exchange rates (an adjustment of £5 million) and exclude sales associated with the completed Venezuelan legacy contract of £2 million (2006 - £6.1 million).
Note 3: Average exchange rates used to translate results are US$2.00 (2006 - 1.84) and Norwegian Krone 11.72 (2006 - Norwegian Krone 11.81).
RNS: 9509L