Vislink plc (AIM:VLK) - numbers ahead but shares pause, visibility is hard to judge
The specialist in solutions for the collection and delivery of high quality video and associated data for the broadcast and surveillance and public safety markets, issued final results for the year ended 31 December 2014, ahead of expectations. The shares have had a decent run in 2015 so a pause for breath was probably on the cards. The valuation looks fair although a lot more work needed to gain a better understanding of visibility.
Revenue rose 3.4% to £61.9m and adjusted operating profit was up 66% to £7.2m. Gross margins rose to 45.9% from 40.7% reflecting the increased impact of higher margin software sales. Revenues were up 3.4% year on year with newly acquired Pebble Beach contributing £8.3m in the nine months under Vislink ownership. Organically, revenues therefore declined 10% due to a number of factors, notably a tough broadcast market. Order intake for the year was £61.4m (2013: £60.1 million) and the opening order book for this year stood at £8.8m. After adjusting for amortisation and impairment of acquired intangibles and other non-recurring…