Vitec (VTC)

Vitec VTC Logo

The international provider of products and solutions for the broadcast and photographic markets.

16-Nov-2017 – 1045p – £479.9m – PER 14.3

Trading Statement – In-line.

Almost doubled in the past 12 months this is ticking a lot of boxes. It’s now going on my Watchlist, my thought being 930p is the technical low – So a 1000p entry or thereabouts and a 900p Stop gives a low enough risk investment.

22-Feb-2018 – 1070p – £481.4m – PER 13.8

Results For The 12 Months To End December 2017 – A “transformational year” – Revenue up 10.8% (£353.3m) and Adjusted PBT up 13.4%, ROCE up 19.6%, FY Dividend increased by 12.1%. Confident, at current exchange rates, of delivering further progress in 2018. Why no hedging strategy, if it’s so important?

I quite liked this and it was on my Watchlist – I am now, on reflection seeing it as less attractive and am going Neutral. The 2 kickers being that further progress, it seems, is dependent on FX (which should not be the case (and it’s not hedged)) and, maybe I am missing something, but I just don’t see the “transformational” here.

21-Feb-2019 – 1125p – £510m – PER 12.2

Results For The 12 Months To End December 2018 – Revenue up 10.8% (£385.4m), Adjusted PBT up 20.8% and EPS up 32.2% (lower tax rate helped). The FY Dividend is up 21.3% (37p). 2019 outlook remains unchanged.

Looks OK to me and one I perhaps need to look into a little more as I don’t really have any kind of view at present.

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