Rental and technical support services, mainly for the broadcast market.
Rental services and selected sales of camera, video, wireless communication and audio equipment, including engineering support for the film and TV programme production markets.
Divisional Report
Taken from the Annual Report 2007
Overview
The Broadcast Services division provides rental equipment and technical support for demanding outside broadcast events, mostly in the USA, from a network of ten depots. Bexel people have a reputation for solving the most complex problems that arise when these events are broadcast. The division also acts as an integrator for sophisticated audio equipment and resells used equipment into the aftermarket.
Strategy
Customers choose Bexel because of their reputation for designing creative solutions, providing service excellence and because of their nationwide footprint. With the most relevant equipment and the best technical back-up, Bexel will continue to target contracts from customers looking for more than simple equipment hire.
2007 performance
Reported revenue of £26.7 million was down 2% (2006: £27.2 million). This business, based in the USA, grew 7% in local currency, a significant achievement in a year with none of the major sporting events that it supports. The fall in the US dollar, however, obscures this picture; reported profit of £1.6 million (2006: £1.7 million) was similarly down in sterling but slightly better in US dollars. This result, in US dollars, is the best since 2000.
With two of the 2008 Olympics contracts awarded to Bexel in 2007, investments in new equipment were increased and this equipment allowed us to earn extra rental income. For example the new Hercules HD fly pack, essentially a mini-studio that can be disassembled and air-freighted, debuted to great acclaim and has been well utilised since its introduction. The fibre services business upgraded NFL’s instant replay system to HD in 29 stadia; more work of this type is anticipated.
Operationally, the investments in IT now enable project staffing, profitability and performance to be monitored and managed very closely, a key part of delivering the required return on capital, which will be helped by the conclusion of new supply agreements with some of the major equipment providers. The Division’s websites and communications have been enhanced, with all the business streams (rental, projects, fibre, resale) now using the well-known Bexel name, and the number of major sales events where we participated has been dramatically increased. Preparation for the two major Olympics contracts in the summer is already well advanced and the Bexel team will exploit the expertise of other Vitec staff based in Beijing to make the event run efficiently.
| 2007 | 2006 | |
| Revenue | £26.7m | £27.2m |
| Operating profit* | £1.6m | £1.7m |
| Operating margin* | 6.0% | 6.3% |
Divisional summaries for previous years can be found under each Annual Report in the reports archive.
