Vislink, the satellite communications group, previously called Silvermines, has announced pre-tax losses of £21.2 million sterling (€34.8 million) in 1999, and the proposed acquisition of Advent Communications for £14.1 million. The shares fell by 11.5 per cent to 119.5p after the announcements.
Following the disposal of several businesses, and the injection of a new management team, the group has become refocused. The continuing businesses show an operating profit of £2 million, compared with £2.1 million in 1998, which more accurately reflects its underlying performance. Sales remained at £43.4 million. Earnings per share, on continuing operations, rose to 1.31p, from 0.96p.
The final dividend is being reduced from 1.0p to 0.3p. The company said it plans to pay only an annual dividend in future.
The acquisition of Advent "provides the opportunity to create and grow a much broader-based satellite, broadcast and telecommunications business" said chairman Mr Bob Morton. "The enlarged group will be able to benefit from the growth in telecommunications and broadcast-quality digital video".
Advent is being acquired for £12.46 million in cash and the issue of 1.2 million new shares - valued at £1.62 million on the basis of a share price of 135p on March 28th. In addition, Advent will pay £1.14 million in pre-sale dividend to its own shareholders and a pension contribution of £0.88 million to its directors.
Mr Morton described 1999 as a year of significant change. Following the appointment of a "new chief executive [Mr Ian Scott-Gall], we have achieved the first part of our declared strategy by disposing of our non-core businesses and generating funds for investment in growth opportunities", he said. "The group is carefully looking at opportunities for expansion, both organically and through acquisition."
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)