- The Vitec Group said it performed satisfactorily in the first four months of the year. Market conditions remain challenging although showing some signs of stabilisation.

The Board remains confident about the mid-term prospects for the Group and its expectations for the full year remain unchanged.

As previously reported, Vitec's first half results will reflect the non-repeat of the significant performance at the 2014 Sochi Winter Olympics and a negative impact from foreign exchange; consequently, the first half results are expected to be lower than the same period last year.

A stronger performance is anticipated in the second half of the year as the Group's markets start to recover, supported by new product sales.

The foreign exchange impact principally reflects the unwinding of previous cash-flow hedges put in place as part of the Group's well-established hedging policy. If exchange rates remain at current levels, Vitec will benefit from a stronger US dollar, partially offset by a weaker Euro, from 2016 onwards.

The Broadcast Division performed broadly in line with the same period last year in variable market conditions after adjusting for foreign currency and the non-repeat of the Winter Olympics.

In February 2015, Vitec acquired the business and net assets of Paralinx, a US producer of high quality wireless video systems, for a net cash consideration of up to £4.1 million ($6.3 million). This business has been successfully integrated into the Teradek wireless products business.

The Photographic Division traded in line with our expectations. The Division continues to benefit from the release of new products including its ranges of tripods and bags and the recent launch of the iPad-based Manfrotto Digital Director which has received positive feedback from customers.

At 30 April 2015, Group net debt was as expected at £86.3 million, reflecting seasonality and after £8.7 million of cash outflows relating to acquisitions as well as the impact of foreign exchange on US dollar debt, and cash spent on the previously announced restructuring. This compares to net debt of £70.9 million at 31 December 2014.

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