Max Damage
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Vislink are valued below 60 million yet expect sales of 60 mill this year. 4 directors have bought including the illustrious Bob Morton. I bought some more today after 2x200,000 buys and guess what. 60 mins later I could have paid 2p less 
However looking at the money float chart why is is it that since sept money flow is positive but the price is falling Help please why?. They are expected to produce EPS of 2.2p this year and have sales of 40 mill for the first 8 months. In the info tech hardware sector they are very cheap.
Below is the interim statement which is highly positive and considering they are into digital TV equipment and considering the iminent analogue switch off they must do very well the next few years
Anyway the website is www.vislink.co.uk and the interim statement is below. What do you all think?
Interim results for the six months ended 30th June 2000
Introduction
The Group's focus during the first half of the year has been to implement the Board's strategy which is for the Broadcast and Telecommunications Division to become the leading global designer and manufacturer of microwave transmission equipment for broadcast television.
I am pleased to report that we have made rapid progress with the achievement of the strategy through two significant acquisitions, which pave the way for the future growth of the Group.
Acquisitions
Following shareholders approval, we completed the acquisition of Advent Communications Limited (Advent) on April 18, 2000. Advent designs and manufactures equipment for the satellite news gathering ("SNG") market. SNG products fall into three product types: portable flyaway systems, mobile vehicle installations and fixed earth stations. The acquisition provides the opportunity to create a much broader based satellite communications business within our overall Broadcast and Telecommunications Division.
The consideration was £13.38 million, satisfied by £12.46 million in cash and the issue of 1.2 million new ordinary shares (valued at £0.92 million on the basis of the closing mid market price per ordinary share of 76.5 pence on April 17, 2000). In addition, Advent paid £1.14 million in pre-sales dividends to its current shareholders and post-completion pension contributions of £0.88 million to its directors. The acquisition was approved by shareholders at an Extraordinary General Meeting on April 17, 2000. The results of Advent for the period since completion are included in this interim report within the Broadcast and Telecommunications Division.
Our second strategic acquisition was announced on June 27, 2000 when the Company agreed to acquire the Microwave Radio Communications business (MRC) of Adaptive Broadband Corporation for a consideration of up to $20.75 million (equivalent to approximately £13.8 million).
MRC is based in the United States of America and is the major supplier of broadcast microwave terrestrial links in the United States with an estimated market share in excess of 50%, with annual sales of US$34.8 million to June 30, 1999. MRC is involved in the design, manufacture and marketing of digital and analogue microwave radio systems for studio to transmitter links and portable and vehicle based electronic news gathering applications for the broadcast industry.
The acquisition provides the Group with the opportunity to access the US market and to strengthen its international position for both digital and analogue broadcast quality television transmission equipment.
The Company also announced a placing to raise approximately £4.5 million (before expenses) to finance part of the consideration for the acquisition. The remainder of the consideration was financed from bank facilities arranged for the purpose.
Both the acquisition and the placing were approved by shareholders at an Extraordinary General Meeting on July 26, 2000 and the acquisition was completed on July 28, 2000.
Both Advent and MRC will work with our existing Broadcast and Telecommunications businesses to address the growth in digital TV and data systems around the world.
Results for the six months to June 30, 2000
During this period the overall profit on ordinary activities before taxation for the Group was £0.42 million (1999 - loss of £0.74 million).
The Group's continuing operations, comprising the two divisions, generated an operating profit before central costs and goodwill amortisation of £1.12 million (1999 - £0.38 million including a loss on discontinued activities of £0.91 million). Orders received in the first half of £26.4 million (1999 - £21.4 million) were in line with expectations. Due to a number of contracts scheduled for delivery in the second half, sales were £19.94 million (1999 - £48.51 million including discontinued activities of £26.94 million).
Central costs were £0.58 million (1999 - £0.65 million) and goodwill amortisation was £0.21 million (1999 - £0.07 million). Due to the funds realised from last years disposal programme, net interest income was £0.09 million (1999 – expense of £0.40 million).
Following the acquisition of Advent, Group debt was £2.29 million compared with net cash of £12.08 million at December 31, 1999.
The level of orders received in the first two months of the current half year was excellent. These amounted to £13.4 million including a good contribution from MRC for the month of August. The Group has a strong outstanding order book.
Earnings Per Share
Earnings per share were 0.36 pence (1999 - 0.26 pence from the continuing businesses) an increase of 38%.
Dividends
The Board is not recommending an interim dividend for the year in line with the Group's strategy to only recommend an annual dividend in future.
Business Review
Broadcast and Telecommunications Division
For the six months sales were £12.70 million, including £1.92 million in respect of Advent. Due to the longer term capital nature of contracts currently in the order book, overall sales were lower than the same period last year (£13.67 million).
The Division's operating profits were held back to £0.81 million (1999 - £0.90 million) before goodwill of £0.21 million (1999 - £0.07 million) due to an initial operating loss in Advent of £0.21 million (before goodwill amortisation of £0.14 million). This occurred in the six weeks following the acquisition when lower than expected levels of output were achieved due to a combination of contract delays and the integration of the business into the Division. Advent has been trading profitably since May with an excellent level of orders received in the last two months.
The Broadcast Division has a strong order book, having won some significant export orders. Notable amongst these were a £2.3 million order for a state sponsored TV station and transmitter system for a West African country, a £0.8 million contract from TV Espana for 38 new generation digital and analogue portable links for outside broadcast coverage and a £1.6 million order from Maroc Telecom for the installation and commissioning of fixed and mobile earth terminals to link remote areas of the country to the developing GSM network. In the UK, Continental Microwave Limited has won orders to upgrade existing digital TV transmitters previously supplied to increase their coverage and is well placed to win the second phase of new site installations, which is expected towards the end of this year.
Video Technology Division
Sales in the period were £7.24 million (1999 - £7.90 million). The Division has started an investment programme to enhance its Internet video based systems, developed by Active Imaging for the acquisition and transmission of real time and pre-recorded video images for the business to business sector and the new products are expected to be available for trial later this year with sales and shipments commencing early next year.
As a result of charging £0.11 million in respect of these exceptional development costs, the first half year divisional operating profits were slightly lower at £0.32 million (1999 - £0.39 million).
The Division continues to win many interesting orders. Active Imaging has won orders from Trafficmaster to enhance and expand their national traffic monitoring network. DataCell secured a £0.3 million order from Portals Limited to supply a print quality controls system for the printing of bank notes. Hernis, our Norwegian based video systems company, has won a £0.6 million order to supply Royal Caribbean Cruise Lines with an integrated CCTV system for two new vessels providing internal and external observation and safety systems.
Strategy
The key to the Group's future growth is the continuing development of its two core businesses. The two recent acquisitions represent a significant achievement in the creation of a global business with critical mass in its international markets for the Broadcast and Telecommunications Division. The Group will continue to develop this Division organically through both market growth and new product development. The investment in Internet video systems and continuing developments within the Video Technology Division are expected to achieve future growth by capitalising on the opportunities for Internet video and CCTV applications.
Domicile
In my letter to shareholders in respect of the acquisition of MRC, I stated that the Board believes there would be a significant advantage to the Group's holding company being an English rather than an Irish company, especially in view of the fact that the business of the Group is managed from the United Kingdom. Accordingly, it is the intention of the Board to take the necessary steps, subject to shareholder and court approval, to effect this change.
Prospects
During the current year the Group has experienced an encouraging level of orders and now has a strong outstanding order book. With the integration of Advent and MRC into the Broadcast and Telecommunications Division, the Board is looking forward to the future with confidence.
A L R Morton
Chairman
September 6, 2000
However looking at the money float chart why is is it that since sept money flow is positive but the price is falling Help please why?. They are expected to produce EPS of 2.2p this year and have sales of 40 mill for the first 8 months. In the info tech hardware sector they are very cheap.
Below is the interim statement which is highly positive and considering they are into digital TV equipment and considering the iminent analogue switch off they must do very well the next few years
Anyway the website is www.vislink.co.uk and the interim statement is below. What do you all think?
Interim results for the six months ended 30th June 2000
Introduction
The Group's focus during the first half of the year has been to implement the Board's strategy which is for the Broadcast and Telecommunications Division to become the leading global designer and manufacturer of microwave transmission equipment for broadcast television.
I am pleased to report that we have made rapid progress with the achievement of the strategy through two significant acquisitions, which pave the way for the future growth of the Group.
Acquisitions
Following shareholders approval, we completed the acquisition of Advent Communications Limited (Advent) on April 18, 2000. Advent designs and manufactures equipment for the satellite news gathering ("SNG") market. SNG products fall into three product types: portable flyaway systems, mobile vehicle installations and fixed earth stations. The acquisition provides the opportunity to create a much broader based satellite communications business within our overall Broadcast and Telecommunications Division.
The consideration was £13.38 million, satisfied by £12.46 million in cash and the issue of 1.2 million new ordinary shares (valued at £0.92 million on the basis of the closing mid market price per ordinary share of 76.5 pence on April 17, 2000). In addition, Advent paid £1.14 million in pre-sales dividends to its current shareholders and post-completion pension contributions of £0.88 million to its directors. The acquisition was approved by shareholders at an Extraordinary General Meeting on April 17, 2000. The results of Advent for the period since completion are included in this interim report within the Broadcast and Telecommunications Division.
Our second strategic acquisition was announced on June 27, 2000 when the Company agreed to acquire the Microwave Radio Communications business (MRC) of Adaptive Broadband Corporation for a consideration of up to $20.75 million (equivalent to approximately £13.8 million).
MRC is based in the United States of America and is the major supplier of broadcast microwave terrestrial links in the United States with an estimated market share in excess of 50%, with annual sales of US$34.8 million to June 30, 1999. MRC is involved in the design, manufacture and marketing of digital and analogue microwave radio systems for studio to transmitter links and portable and vehicle based electronic news gathering applications for the broadcast industry.
The acquisition provides the Group with the opportunity to access the US market and to strengthen its international position for both digital and analogue broadcast quality television transmission equipment.
The Company also announced a placing to raise approximately £4.5 million (before expenses) to finance part of the consideration for the acquisition. The remainder of the consideration was financed from bank facilities arranged for the purpose.
Both the acquisition and the placing were approved by shareholders at an Extraordinary General Meeting on July 26, 2000 and the acquisition was completed on July 28, 2000.
Both Advent and MRC will work with our existing Broadcast and Telecommunications businesses to address the growth in digital TV and data systems around the world.
Results for the six months to June 30, 2000
During this period the overall profit on ordinary activities before taxation for the Group was £0.42 million (1999 - loss of £0.74 million).
The Group's continuing operations, comprising the two divisions, generated an operating profit before central costs and goodwill amortisation of £1.12 million (1999 - £0.38 million including a loss on discontinued activities of £0.91 million). Orders received in the first half of £26.4 million (1999 - £21.4 million) were in line with expectations. Due to a number of contracts scheduled for delivery in the second half, sales were £19.94 million (1999 - £48.51 million including discontinued activities of £26.94 million).
Central costs were £0.58 million (1999 - £0.65 million) and goodwill amortisation was £0.21 million (1999 - £0.07 million). Due to the funds realised from last years disposal programme, net interest income was £0.09 million (1999 – expense of £0.40 million).
Following the acquisition of Advent, Group debt was £2.29 million compared with net cash of £12.08 million at December 31, 1999.
The level of orders received in the first two months of the current half year was excellent. These amounted to £13.4 million including a good contribution from MRC for the month of August. The Group has a strong outstanding order book.
Earnings Per Share
Earnings per share were 0.36 pence (1999 - 0.26 pence from the continuing businesses) an increase of 38%.
Dividends
The Board is not recommending an interim dividend for the year in line with the Group's strategy to only recommend an annual dividend in future.
Business Review
Broadcast and Telecommunications Division
For the six months sales were £12.70 million, including £1.92 million in respect of Advent. Due to the longer term capital nature of contracts currently in the order book, overall sales were lower than the same period last year (£13.67 million).
The Division's operating profits were held back to £0.81 million (1999 - £0.90 million) before goodwill of £0.21 million (1999 - £0.07 million) due to an initial operating loss in Advent of £0.21 million (before goodwill amortisation of £0.14 million). This occurred in the six weeks following the acquisition when lower than expected levels of output were achieved due to a combination of contract delays and the integration of the business into the Division. Advent has been trading profitably since May with an excellent level of orders received in the last two months.
The Broadcast Division has a strong order book, having won some significant export orders. Notable amongst these were a £2.3 million order for a state sponsored TV station and transmitter system for a West African country, a £0.8 million contract from TV Espana for 38 new generation digital and analogue portable links for outside broadcast coverage and a £1.6 million order from Maroc Telecom for the installation and commissioning of fixed and mobile earth terminals to link remote areas of the country to the developing GSM network. In the UK, Continental Microwave Limited has won orders to upgrade existing digital TV transmitters previously supplied to increase their coverage and is well placed to win the second phase of new site installations, which is expected towards the end of this year.
Video Technology Division
Sales in the period were £7.24 million (1999 - £7.90 million). The Division has started an investment programme to enhance its Internet video based systems, developed by Active Imaging for the acquisition and transmission of real time and pre-recorded video images for the business to business sector and the new products are expected to be available for trial later this year with sales and shipments commencing early next year.
As a result of charging £0.11 million in respect of these exceptional development costs, the first half year divisional operating profits were slightly lower at £0.32 million (1999 - £0.39 million).
The Division continues to win many interesting orders. Active Imaging has won orders from Trafficmaster to enhance and expand their national traffic monitoring network. DataCell secured a £0.3 million order from Portals Limited to supply a print quality controls system for the printing of bank notes. Hernis, our Norwegian based video systems company, has won a £0.6 million order to supply Royal Caribbean Cruise Lines with an integrated CCTV system for two new vessels providing internal and external observation and safety systems.
Strategy
The key to the Group's future growth is the continuing development of its two core businesses. The two recent acquisitions represent a significant achievement in the creation of a global business with critical mass in its international markets for the Broadcast and Telecommunications Division. The Group will continue to develop this Division organically through both market growth and new product development. The investment in Internet video systems and continuing developments within the Video Technology Division are expected to achieve future growth by capitalising on the opportunities for Internet video and CCTV applications.
Domicile
In my letter to shareholders in respect of the acquisition of MRC, I stated that the Board believes there would be a significant advantage to the Group's holding company being an English rather than an Irish company, especially in view of the fact that the business of the Group is managed from the United Kingdom. Accordingly, it is the intention of the Board to take the necessary steps, subject to shareholder and court approval, to effect this change.
Prospects
During the current year the Group has experienced an encouraging level of orders and now has a strong outstanding order book. With the integration of Advent and MRC into the Broadcast and Telecommunications Division, the Board is looking forward to the future with confidence.
A L R Morton
Chairman
September 6, 2000