REG - Videndum PLC - Trading Update

VidendumAnnouncement

21/02/2025 07:00

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RNS Number : 9448X  Videndum PLC  21 February 2025

 

21 February 2025

Videndum plc

FY24 results in line; February covenant test waived

 

Videndum plc (the "Company" or the "Group") confirms that, subject to
finalisation of regular audit procedures, its results for FY24 were in line
with guidance provided in the Group's pre-close trading update of 16 December
2024 and the amended December 2024 covenant test has been met.

The February 2025 covenant test has been waived. Discussions with our lending
banks regarding the March 2025 covenant and continued access to the Group's
Revolving Credit Facility are ongoing. As outlined previously, an amendment or
waiver of the March 2025 covenant will be required as the performance in H2
FY24 was weaker than that anticipated in the H1 FY24 results announcement. As
a result, the March 2025 covenant which factors in the last 12 months
performance will not be met.

The work required to refinance the Revolving Credit Facility, set to expire in
August 2026, continues and our lending banks remain supportive of the Company.

Since our last update, we have commenced additional restructuring initiatives
including the planned transfer of manufacturing operations from Bury St
Edmunds to Feltre, in Italy. This is part of our ongoing operational
efficiency programme, which is continuing at pace, with employee and union
agreements necessary to deliver the planned savings now in place.

As a result of the additional initiatives, we have increased our 2025
cost-saving target of £15 million, from £10 million previously. These costs
are primarily structural in nature and not expected to return as volumes rise.
The associated cash restructuring costs related to announced initiatives is
now expected to be c.£15 million, of which £3 million was incurred in
FY24. The measures we are taking are positioning Videndum for a strong
recovery and expanding margins.

 

Stephen Harris, Executive Chairman commented:

"The gradual improvement in our markets has continued. We are seeing improving
signs, particularly in Cine and Broadcast, in terms of quantity and quality of
projects and enquiries. These should start turning into stronger order
momentum once we get past the traditional doldrums of January and early
February.  While we are not planning on a strong uptick in orders and
revenues as we drive the business forward, we are gaining increasing
confidence that the direction of travel is for improved strength in revenues
as we move through the year.

"There is still work to do, but I am confident that we are on the right path -
building a stronger business, well positioned to capitalise on the market
recovery".

 

Enquiries

FTI Consulting

Richard Mountain / Ben Fletcher

Telephone: 020 3272 1340

 

Videndum

Stephen Harris

Group Executive Chairman

Telephone: 020 8332 4602

 

A snapshot of Videndum plc

Videndum is a leading global provider of premium branded hardware products and
software solutions to the growing content creation market.

Videndum's customers include broadcasters, film studios, production and rental
companies, photographers, independent content creators, gamers, professional
musicians and enterprises. Our product portfolio includes camera supports,
video transmission systems and monitors, live streaming solutions, smartphone
accessories, robotic camera systems, prompters, LED lighting, mobile power,
carrying solutions, backgrounds, motion control, audio capture, and noise
reduction equipment.

We employ around 1,500 people across the world in 10 different countries.
Videndum plc is listed on the London Stock Exchange, ticker: VID.

More information can be found at: https://videndum.com/
(https://videndum.com/)

LEI number: 2138007H5DQ4X8YOCF14

 

This announcement contains inside information. The person responsible for
arranging the release of this announcement on behalf of Videndum plc is Jon
Bolton, Group Company Secretary.

 

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