Trading Statement

RNS Number:9226M
The Vitec Group PLC
30 June 2003



30 June 2003


                                   The Vitec Group plc
                               Pre-Close Trading Update


The Vitec Group plc, the international supplier of products, services and
solutions to the Broadcast, Entertainment and Media industries, today provides a
trading update ahead of the close period preceding its half year results
announcement due for release on 1 September 2003.


In Photographic and Retail Display, sales in the half year to date have been
boosted by recent new product introductions, particularly in Photographic where
volumes for tripod products are up 15% on last year, and continuing large
projects in Retail Display. Despite a promising first quarter, like-for-like
sales in the Broadcast Systems division are now expected to be lower than last
year due to continuing market weakness, particularly in Europe, allied to the
effects of the present slowdown in Asia.  The Communications element of
Broadcast Systems won its first Air Traffic Control contracts, which will be
shipped in the second half of this year, but US government orders have slowed.
The recent acquisitions are performing in line with expectations, pushing total
Broadcast Systems sales ahead of last year.  As expected, Broadcast Services'
sales are below last year due to the non-recurrence of major sporting events
held in 2002.



Over half of the Group's sales are derived from either the US or other
US$-related economies. With Photographic production based in Italy, the Group is
therefore exposed to the strengthening Euro.  At current rates, after taking
into account forward hedges, the negative transactional effect on the full year
compared to last year is estimated to have risen from approximately #2m as at
January to approximately #3m now. While this is offset by modest gains on profit
translation into sterling, the effect will be to substantially negate the volume
gains achieved in Photographic and Retail.  Additionally, the Group will take a
one-time charge of around #1m to operating profit within Retail Display related
to upgrading certain display units to ensure stringent compliance with European
standards.



Within Broadcast Systems, first half margins will be significantly affected by
continuing adverse mix changes and the temporary costs associated with the
factory closures, which we expect to be behind us by the end of October. Drake
relocated to new premises on the Cambridge Research Park during April, the costs
of which have fallen mainly in the first half.



The relocation of Radamec Broadcast Systems, announced in March, is progressing
smoothly with the manufacturing plant now successfully integrated into an
existing facility. A charge of #1.1m against operating profit will be taken for
the associated redundancies and costs.



                                     -Ends-



Contacts:


Gareth Rhys Williams                  Telephone: [phone]
The Vitec Group plc


Rob Gurner                            Telephone: [phone]
Financial Dynamics


Notes to Editors



The Vitec Group plc supplies a wide range of equipment and services to the
broadcasting, entertainment, photographic and retail display industries. Its
products are distributed in nearly 100 countries, either through dealerships or
direct to the end user or corporate sector. Vitec trades through market-leading
brands such as Sachtler, Vinten, Manfrotto, Clear-Com and Bexel, and is a major
force in its chosen specialised fields.


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