NOT FOR RELEASE, PUBLICATION OR
DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION
WHERE TO DO THE SAME WOULD CONSTITUTE A VIOLATION OF THE RELEVANT
LAWS OF SUCH JURISDICTION.
11 July 2024
Videndum plc
2024 Half Year Post-close
Statement
Videndum plc ("the Group" or "the Company"),
the international provider of premium branded hardware products and
software solutions to the content creation market, issues a
post-close statement for the half year ended 30 June
2024.
The Group's first half revenue was broadly in
line with its expectations, reflecting some post-strike recovery in
the cine and scripted TV market, however the recovery is taking
longer than anticipated. Net debt at 30 June 2024 was c.£118
million, down from £122.4 million at 31 March
2024.
The macroeconomic environment
affecting the consumer and independent content creator segments
remains challenging, and the Group has
maintained its focus on controlling costs, capex and working
capital tightly. The Broadcast TV segment
continues to perform well, and the Group's second half performance
will benefit from the Summer 2024 Olympic Games and the US
Presidential election.
The Board continues to expect a
recovery in the second half of FY 2024 as the cine and scripted TV
market gradually recovers. Although we are seeing signs of
improvement, as previously highlighted, the pace and shape of the
post-strike recovery remains uncertain.
As expected, the Group has
renegotiated its committed Revolving Credit Facility ("RCF") with
its lending banks. The facility has been extended, reduced in
quantum, and its lending covenants, particularly interest cover,
relaxed - see note 1 for details. These amendments to the RCF
preclude the Board from declaring a dividend until delivery of the
31 March 2025 covenant test.
Videndum's interim results for the
six months ending 30 June 2024 are expected to be released in late
September 2024.
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For more information please
contact:
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Videndum plc
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Telephone: 020 8332 4602
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Stephen Bird, Group Chief
Executive
Andrea Rigamonti, Group Chief
Financial Officer
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Notes to Editors:
Videndum is a leading global
provider of premium branded hardware products and software
solutions to the content creation market. We are organised in three
Divisions: Videndum Media Solutions, Videndum Production Solutions
and Videndum Creative Solutions.
Videndum's customers include
broadcasters, film studios, production and rental companies,
photographers, independent content creators ("ICC"), 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, audio capture, and noise reduction
equipment.
We employ around 1,600 people across
the world in ten 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.
Notes
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1
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Lending covenants have been amended
for June 2024 (leverage² to 4.25x and interest cover³ to 1.5x),
September 2024 (interest cover³ to 2.25x), and December 2024
(interest cover³ to 3.0x); interest cover³ to 3.5x thereafter, and
quarterly test dates to continue.
Total committed facility has been
reduced by £50 million to £150 million reflecting the lower level
of borrowings that the Group is operating with after the equity
raise in December 2023. Net debt at 30 June
2024 was c.£118 million comprising c.£86 million borrowings net of
cash and cash equivalents, and c.£32 million IFRS 16 lease
liabilities.
Termination date has been extended
by six months to 14 August 2026.
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2
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Leverage is calculated as net debt
before arrangement fees and after leases of discontinued
operations, divided by covenant EBITDA for the applicable 12-month
period (being adjusted EBITDA, before share-based payment charges,
and after interest on employee benefits, interest related net
currency translation gains, and the amortisation of loan
arrangement fees); see the Glossary in the Annual Report 2023 for
further detail.
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3
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Interest cover is calculated as
covenant EBITA for the applicable 12-month period (being adjusted
EBITDA less depreciation of PP&E) divided by adjusted net
finance expense (before interest on employee benefits and FX
movements, and the amortisation of arrangement fees); see the
Glossary in the Annual Report 2023 for further detail.
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