Videndum (LON:VID) Releases Quarterly Earnings Results

Videndum (LON:VID) released its earnings results on Wednesday. The company reported GBX (66.10) EPS for the quarter, Digital Look Earnings reports. Videndum had a negative return on equity of 178.70% and a negative net margin of 30.14%.

Here are the key takeaways from Videndum’s conference call:

• First-half performance was weak: like-for-like revenue was broadly flat, while the company missed more than £6 million of expected Manfrotto ONE sales because of automated production-line problems. Middle East project delays and elevated freight costs also deferred revenue into the second half.
• Cost reductions and working-capital management improved profitability and cash generation, with EBITDA rising to £3 million, operating cash flow reaching £2.3 million, and inventory reduced by £10 million. Management expects £8 million of full-year savings.
• The refinancing materially strengthened the balance sheet, reducing net debt by roughly £110 million through an £85 million equity raise, debt equitization and lender write-offs. Net debt stood at £39.3 million and liquidity at £25 million at June-end, well above the £5 million covenant.
• Management expects performance to improve in the second half as deferred orders, 26 new product lines and expanded Asian sales channels contribute, and it maintained its medium-term target of £350 million in revenue with mid-teen EBITDA margins. A new CEO, Jan Peter Tewes, will start on August 17 to lead sales, channel management and operational improvement.

Videndum Stock Performance

Shares of LON VID traded up GBX 13 during midday trading on Wednesday, reaching GBX 250. The company had a trading volume of 728,177 shares, compared to its average volume of 23,895. The business’s 50-day simple moving average is GBX 364.92 and its 200 day simple moving average is GBX 948.17. The stock has a market cap of £100.73 million, a P/E ratio of -0.02 and a beta of 0.85. Videndum has a 1 year low of GBX 215 and a 1 year high of £190.40. The company has a current ratio of 0.63, a quick ratio of 0.68 and a debt-to-equity ratio of 946.30.

About Videndum

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 sounds 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, bags, backgrounds and motion control, audio capture and noise reduction equipment.