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Products and systems primarily for broadcast applications

The Broadcast systems division designs and manufactures high quality equipment used principally by broadcast and live entertainment professionals.

The division is focused on studio broadcast, outside broadcast, electronic news gathering and electronic film production markets with applications in the air traffic control and government markets.

Divisional Report
Taken from the Annual Report 2005

Overview

The Broadcast Systems division, with its major businesses in the US, Germany and the UK, provides equipment principally for the professional video cameraman and studio or outside broadcast production teams, which are generally sold either direct to the customer or through specialist dealers. The operating units, where Vitec brands are acknowledged leaders, are Camera Support, including lighting systems, Portable Power systems, and Communications.

Strategy

Following the decline in the broadcast market and the changes in camera technology, we have consolidated the division into fewer, larger business units and are now able to manufacture at lower cost and devote more resources to product development. By introducing exciting and innovative new products we will be able to stimulate the market and grow sales and profits. Additionally we are looking to expand in markets outside broadcast and entertainment where we have relevant technology and products.

2005 performance

2005 saw significant top and bottom line improvements as a result of an upturn in the Broadcast and Live Entertainment markets and the benefits from the restructuring programmes, particularly in our Camera Support business. The establishment of our Beijing office in 2004 led to substantial sales in mainland China, especially in sports and news-driven camera support applications. Overall revenue in 2005 grew by 5.3% to £91.5 million (2004: £86.9 million). Divisional profitability improved as a result of the additional volume and through tight control of costs. With the new structure in place, further opportunities to improve purchasing and simplify logistics have been taken. Operating profit before significant items* rose to £5.2 million (2004: £3.8 million), as these benefits coincided with a more benign foreign exchange environment.

The division continued to launch new products that command attention in the marketplace. In Camera Support, following the acquisition of Radamec Broadcast Systems in 2003, the Robotic business was rebranded Vinten-Radamec. A single control system for all existing Robotic products was launched at the IBC show in September 2005, allowing customers to add new products to either type of existing Radamec or Autocam system. The new control system allows users to select either style of user interface and even to switch between operators or between shows whilst retaining shot definitions. Most significantly, the demand for studio products increased steadily from the low point in Q1 2004, possibly driven by early purchases for the Turin Winter Olympics and football World Cup. Sachtler saw broad acceptance for its new range of ‘Speedbalance’ video camera mounting heads which give a much finer control of the balance function whilst retaining the repeatable stepwise setting for which Sachtler is renowned.

Anton/Bauer, celebrating its 35th year in business, again produced a good result. Noteworthy was the delivery of a unique power source designed exclusively for Panavision’s Genesis HD Super 35 Digital Cinematography camera system, introduced as more and more film studios replace their traditional celluloid-based cameras.

In Communications, the integration of Drake and Clear-Com has led to a large increase in sales in Europe and the Middle East. A revolutionary 'Voice over IP' intercom product will start to contribute to sales in 2006, and the CellCom wireless intercom was approved for use in the USA in November 2005. While the market for Communications remained very tough, these new, higher margin products launched recently are beginning to build volume. With all of the initial contracts for Air Traffic Control (ATC) projects now completed, and now we are an established supplier, the focus has switched to driving up margins. The roll-out of the divisional ERP system continued, with the Cambridge site going live in January 2006.

The acquisition of Petrol, whose camera bags had been distributed by Sachtler for three years, was completed in January 2006. The acquisition widens the division’s product range, positioning it well for future growth.

TV Technology’s Star Award 2005