The Group at a glance
The Vislink Group is a profitable, focussed and cash-positive technology business. With an impressive track record of timely acquisitions in the both the UK and US, the group’s success is built on its ability to build and support strong local management teams at its four market-leading brands. By fostering the entrepreneurial drive of around 450 people worldwide within a stable and disciplined group structure, Vislink offers a unique portfolio of proven technologies for broadcasting, defence, law enforcement and marine safety.
Vislink Group provides secure communications to its customers, whether designed to get video pictures of a cargo hold back to the bridge of a ship, or news back to the studio, or the results of surveillance to security authorities, or the view of a motor race from the driver’s cockpit.
Vislink operates in attractive market sectors which are growing and are relatively resilient to the economic cycle. This is because the majority of our products represent capital purchases by our customers whose own operations depend critically upon what we supply to them.
The Group’s companies have consistently built their markets by winning the loyalty of its customers through the innovative ways in which they supply their customers with secure communications.
Vislink has now been organised into four international Business Units, each of which will be focused on providing secure communications to the customers we serve. These are:
- Law Enforcement and Public Safety (which combines the surveillance systems activities of Link, MRC, Advent and PMR together with our defence activities);
- Marine and Energy (which builds on the current Hernis business);
- Services (which combines the services businesses of MRC, WTS and Advent).
The Business Units are responsible for all aspects of sales, marketing and customer care, to ensure our customers have what they want when they want it. They are each responsible for their revenues and operating profits.
The Business Units are supported by two operational divisions:
- Vislink Technologies is responsible for forward technology strategy of the Group. It designs and develops products to meet the requirements of our customers.
- The Business Units will source their products through Vislink Logistics, which is responsible for the sourcing of materials and products in the most cost-efficient way for the Group.
2009 will be a year of transition, as each of the new business units implements its forward strategy to develop and sell the technologies and products of the whole Group, whilst operations and technology investments are streamlined. As previously announced it is expected that the costs of the reorganisation will be circa £1.0 million in cash which will be charged as an exceptional cost in 2009.
Our goal is to leave 2009 with a reduced cost base, and accelerating growth in each of our chosen sectors as we focus our resources more effectively.
Results for the year ended 31 December 2008
Headlines:
- Order backlog at 31 December 2008 was £34.1 million at year end FX rates (2007: £34.7 million)
- The Group continues to increase its investment in R&D; cash spend in 2008 was up 19.7% to £9.1 million including amounts capitalised (2007: £7.6 million); Link Research won the Association of International Broadcasters’ Most Innovative Use of Technology award
- As anticipated the adjusted operating profit declined to £9.1 million primarily due to lower margins from the 2GHz spectrum relocation programme in the USA
- The Group generated £8.6m of operating cash, and closed the year with £1.2 million of net cash (2007: £3.5 million) having made two acquisitions with a net cash outflow of £6.3 million
- Acquisition of PMR in August 2008 added critical mass to the law Enforcement and Public Safety business
- The Group announced its new strategic direction on 19 January 2009 to reorganise the business around its markets and is already seeing the early benefits from this change
- The Group expects to improve operational efficiency, combined with cost reductions, to underpin the 2009 financial performance
You can read the full text of the announcement of the results by following the link below:
