London W1-based Carlton Communications Plc has turned in pre-tax profits for the year to September 30 up 13% at UKP127m on sales that rose 32% to UKP764m. The Video and Sound Products division has reported progress – results included the first full year’s contribution from Quantel, Solid State Logic and Cabletime. This, the third largest division, accounted for 19% of total turnover, with operating profits up 71% on last year at UKP37m on sales that rose 122% to UKP144m. Margins, however, were down as anticipated at the interim stage (CI No 1,430), at 26%. The company says it is encouraged by the degree of success of its most recent products, including the Graphics Paintbox, which won the Icograda award this year. Carlton is increasing its presence in Asia, in particular Japan, where sales increased by 46% over the year – the company reckons that 50% of television advertisements there have been made with the help of one of its products. Solid State Logic is also reported to be doing well in Japan, where it is claimed to be the market leader in sound mixing consoles with 155 installed and SSL products accounting for 48% of the professional recording market. Digital Audio Research has now sold its SoundStations to over 20 countries worldwide and Abekas has opened new sales offices in France and Italy – its A53D digital effect system has had 1,700 sales worldwide. And the new A82 composite digital vision mixer has begun manufacture. Cabletime, installed in the UK and France, is claimed now to be market leader in switch star cable television systems. Carlton, which recently took a 20% equity stake in the multi-media company Next Technology Corp Ltd, with an option of a further 10%, is boasting a healthy balance sheet with net assets of UKP247m, an increase of 126% on last year, and a net cash balance of UKP115m. Says Carlton’s Simon Case, no acquisitions are planned – you don’t spend money just because you’ve got it – Carlton is just enjoying not having to borrow money and will use it to invest in its existing businesses. Share earnings were down 20% at 42.8 pence, still diluted by the increase in the number of shares issued when UEI Plc was acquired two years ago. A proposed final dividend of 8.55p will be paid on April 8.
