I will start by saying that I know I don't know. Hardly original but as ever appropriate.
I hold both of the above companies whose share price performance has been less than sparkling of late. The principal and well publicised reason is undoubtedly the screen writers and now actors strike in the USA.
Videndum (LON:VID) announced on 2nd May that the then writers strike was likely to impact its 2023 results, the extent of which it was unable to quantify. There is also the further challenge of destocking by its customers to contend with.
Debt is a concern and perhaps with the exception of fraud is the one thing that results in the demise of a company. At the prelims on 31 Decemebr it had net debt of £194.1M with a net debt: EBITDA ratio of 2.1, which the company expects to increase this year before reducing. Its loan covenant is 3.25, so at present it retains reasonable headroom. It had available liquidity at 31 December of £102.1m. I very much like the area in which the company operates but at present it is in the eye of the storm.
On current estimates the shares look a raging buy at around 600p, but I suspect these will see some downward revision when the half year results area announced, although I hope not.
Interim results are due in early August so at least we shouldn't have to wait too long for a clearer picture, excuse the pun!
As for Facilities by ADF (LON:ADF) the share price is under significant pressure due it appears to the potential impact of the aforementioned strike. I am not aware that there is strike action in the UK at present, although this is clearly a possibility. The company states "that the typical lead time for booking productions remains at seven months and our FY23 order book continues to be strongly populated." On this basis productions due to commence this month would have been agreed and booked last December/January. It is reasonable to assumes that booking contracts will include conditions relating to deferral/cancellation, with the intention presumably of compensating Facilities by ADF (LON:ADF) , but this is speculation on my behalf
At 31 December 2022, net debt (borrowings less cash, including IFRS16 property 'loans') was £11.7M, if IFRS leases are excluded net debt was £3.426m, which relates to…
