Videndum (VID) Trading Update summary

Market and trading update

• Market recovery remains slower than anticipated, with gradual improvement expected to benefit H1 FY25 trading.

• Revenue for FY24 is projected at approximately £280 million.

• An exceptional charge of about £25 million is expected, mainly from non-cash write-offs and reclassification of discontinued operations.

• Adjusting items include a £10 million restructuring charge, with £3 million paid in FY24 and the rest in FY25.

• Net debt is forecasted at around £135 million, including £30 million in lease liabilities.

Operational efficiency and restructuring

• Operational efficiency programme focuses on pricing discipline, efficiency, gross margin expansion, and reduced discretionary spend.

• Organisational structure simplified from three divisions to two: Videndum Production and Imaging (VPI) and Videndum Creative Solutions (VCS).

• £10 million cost-saving programme is 80% implemented, with full savings expected in FY25.

• Further cost-saving opportunities are under evaluation.

Financial and covenant update

• Lending banks have amended December 2024 covenants: interest cover at least 1.25x EBITA, leverage no more than 5.5x EBITDA.

• March 2025 covenant thresholds now apply to end of February 2025.

• Revolving Credit Facility expires August 2026; extension or refinancing is being pursued in H1 2025.

• Update on refinancing and covenants expected in Q1 2025.