Videndum refinancing talks continue as awaits pick-up in orders

(Alliance News) - Videndum PLC on Friday said its banks remain "supportive" as talks on refinancing continue, amid some encouraging signs in its markets.

The London-based provider of hardware and software for broadcasters, film studios and other media content creators said the February 2025 covenant test has been waived while discussions with banks regarding the March covenant and continued access to the revolving credit facility are ongoing.

An amendment or waiver of the March covenant will be required as the performance in the second half of financial 2024 was weaker than that anticipated in the first half results announcement, the firm explained.

"As a result, the March 2025 covenant which factors in the last 12 months performance will not be met."

In addition, the work required to refinance the RCF, which is set to expire in August 2026, continues and lending banks "remain supportive", it added.

Shares in Videndum plunged 15% to 53.00 pence each in London on Friday morning.

Executive Chair Stephen Harris said the gradual improvement in its markets has continued, with improving signs, particularly in Cine and Broadcast.

These should start turning into stronger order momentum once "we get past the traditional doldrums of January and early February," Harris added.

"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," he continued.

Videndum said full-year results will be in line with guidance provided in December.

Additional restructuring initiatives, including the planned transfer of manufacturing operations from Bury St Edmunds to Feltre in Italy, the firm added.

"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 GBP15 million, from GBP10 million previously," the company said.

The associated cash restructuring costs related to announced initiatives are now expected to be GBP15 million, of which GBP3 million was incurred in financial 2024.

The measures we are taking are positioning Videndum for a strong recovery and expanding margins," it explained.

By Jeremy Cutler, Alliance News reporter

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