Videndum PLC Trading Update (4146H)

TIDMVID

RNS Number : 4146H

Videndum PLC

24 November 2022

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24 November 2022

Videndum plc

Trading Update

Full Year expectations unchanged

Videndum plc ("the Company" or "the Group"), the international provider of premium branded hardware products and software solutions to the growing content creation market, issues the following announcement and trading update for the four months ended 31 October 2022.

Trading

 
 --   Media Solutions saw continued strong demand in the B2B 
       segment with high growth in lighting supports, and the 
       new JOBY microphone launch has been well received. As previously 
       highlighted, the consumer segment, which accounts for c.20% 
       of divisional revenue, continues to be soft. 
 --   Production Solutions performed strongly, driven by high 
       demand from professionals, for example, for our flowtech 
       and OConnor systems for original content creation. Our 
       robotics and voice-activated prompting solutions also performed 
       well, driven by increased demand for remote production 
       and automation in broadcast TV studios. 
 --   Creative Solutions continued to see high demand for our 
       Teradek and SmallHD 4K/HDR video transmission and monitoring 
       systems in the cine/scripted TV market. Our medical segment 
       grew significantly with strong demand for our Amimon products 
       in operating rooms. Interest in the new ART technology 
       continues to grow.

Outlook

The Group has a robust balance sheet and we currently expect that the covenant net debt to EBITDA ratio at 31 December 2022 will be around 2.2x, factoring in FX and working capital movements.

While the current macro-economic environment is uncertain, and despite the impact of weaker consumer spending, the Board's expectations for adjusted profit before tax for the year ending 31 December 2022 remain unchanged.

Reorganisation of Creative Solutions

As previously highlighted, following a period of significant investment in R&D in Creative Solutions, the future focus is on leveraging our unique technologies and platforms to drive further growth in strategic markets. Consequently, the Group intends to reorganise the Creative Solutions sales and marketing teams into specialist vertical segments to maximise the Division's growth potential, and to focus on high end, high margin, mission-critical products incorporating patented Amimon technology, exiting the low margin, low end of the wireless video streaming market where our products do not incorporate the Amimon technology.

The actions outlined above will improve our customer focus, reduce operating costs and enhance operating margins. The total cash cost of the reorganisation is expected to be c.$2.5 million (GBP2.1 million), to be incurred in 2022 and 2023, with non-cash write-offs of c.$5.0 million (GBP4.2 million). The annual divisional cost base is expected to reduce by c.$3.5 million (GBP2.9 million).

Stephen Bird, Group Chief Executive, commented:

"Videndum has transformed in the last ten years and is now uniquely positioned right at the heart of the content creation market. The fundamental growth drivers of the business remain very positive, and these are underpinned by technology change driving shorter product replacement cycles. The Group's market-leading, premium brands allow us to manage inflationary headwinds with pricing actions and to manage supply chain challenges through operational excellence.

"While the current macro-economic environment is uncertain, and despite the impact of weaker consumer spending, the Board's expectations for adjusted profit before tax for the year ending 31 December 2022 remain unchanged."

Board changes

The Group is pleased to announce the appointment of Teté Soto to the Board of the Company as a Non-Executive Director with effect from 24 November 2022. Teté will also be a member of the Audit, Remuneration and Nominations Committees.

Teté Soto has recently joined The Access Group as Senior Vice President of Marketing and was formerly Chief Executive Officer of Amigo Technology Limited, a cloud-based technology platform. Between 2013 and 2021 Teté held several roles at O(2) including Transformation Director, Customer Marketing Director and General Manager, Online and Multichannel. Prior to O(2) , Teté worked at AllSaints as Global eCommerce Director and Dixons as Head of eCommerce Strategy & Planning. Teté is a Spanish national and holds a degree in Law and Business Administration from ICADE and an MBA from INSEAD.

Commenting on the appointment, Ian McHoul, Videndum's Chairman said: "Teté's appointment significantly strengthens the Board's skills around eCommerce and digital marketing. I am delighted that she is joining us."

There are no further matters to be disclosed in accordance with paragraph 9.6.13 of the Listing Rules of the UK Listing Authority.

Full Year results

Videndum is scheduled to release its Full Year 2022 results announcement on Tuesday 28 February 2023.

 
 For further information please contact: 
 Videndum plc                              Telephone: 020 8332 4602 
 Stephen Bird, Group Chief Executive 
 Jennifer Shaw, Group Communications 
  Director

Notes to Editors :

Videndum (formerly known as The Vitec Group plc) 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, vloggers, influencers, gamers, professional sound crews 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 and motion control, audio capture and noise reduction equipment.

We employ around 2,000 people across the world in 11 different countries and are organised in three Divisions: Media Solutions, Production Solutions and Creative Solutions.

Videndum plc is a FTSE250 company listed on the London Stock Exchange, ticker symbol: VID.

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

LEI number: 2138007H5DQ4X8YOCF14

Note:

 
 Exchange rate: GBP1 = $1.19.

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