Vislink (37.75pand 4.8% of JIC): Results for the 6 months ended 30thJune 2013 look excellent. Adjusted earnings per share have doubled from 0.9p to 1.8p and operating margins have improved from 5.0% to 7.2%. Encouragingly order intake is up 32.3% to £33.6m.
It has all also announced the acquisition of Amplifer Technology, a leading design and manufacturer of amplifiers and jammers for the defence and surveillance market for a total consideration, including earn out, of £4.0m and a global strategic partnership with C-Com Satellite Systems Inc. which will include cross selling of their respective satellite products, R&D cooperation and enable Vislink to extend its product range and open new market sectors.
Conclusion: John Hawkins, Executive Chairman is delivering on his strategy of improving sales and margins at Vislink and building up the Defence and Surveillance division. He reaffirms that they are on track to deliver on their plan to grow the business to £80m turnover and £8.0m of operating profit by the end of next year. Market forecasts for 2015 are for turnover of only £67m so there remains considerable scope for upgrades over the coming year. On only 11.5x 2014 forecasts for 15% earnings growth and with a prospective 2013 yield of 3.4% the shares in my view can make much further progress. Very Happy Holder!
Filed Under: Technology,
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