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/
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.
