2 September 2014 – interim results

In the six months to 30 June, group revenues declined to £27.1m (2013: £28.0m) with adjusted pre-tax profits falling to £1.7m (2013: £2.0m).  Earnings per share on the same basis fell to 1.2p (2013: 1.8p) and there was no interim dividend.  Net debt at the period end was £0.3m (31 December 2013: net cash of £3.7m) although this was largely due to spending around £7m on the strategic acquisition of Pebble Beach Systems in March.  The latter has traded ahead of expectations since it was acquired.  The group has also announced today an agreement with US group Harmonic Inc which will allow the latter to sell packages integrated with Pebble Beach Systems’ software with an initial order being placed worth £2m.  In addition, Harmonic has agreed to purchase 4m new shares in Vislink at 50p each giving it a stake of 3.26% in the company.  2014 is a transitional and transformational year for the group but long term prospects still look attractive and the shares remain a BUY.