Videndum (VID) Trading Update summary

Financial performance and trading update

• First half 2024 revenue was broadly in line with expectations, with some post-strike recovery in the cine and scripted TV market, though recovery is slower than anticipated.

• Net debt at 30 June 2024 was approximately £118 million, down from £122.4 million at 31 March 2024.

• Macroeconomic challenges persist in consumer and independent content creator segments, prompting continued focus on cost, capex, and working capital control.

• Broadcast TV segment continues to perform well, with second half performance expected to benefit from the Summer 2024 Olympic Games and the US Presidential election.

• Board expects a gradual recovery in the second half of FY 2024, but the pace and shape of post-strike recovery remain uncertain.

Liquidity and capital structure

• Committed Revolving Credit Facility (RCF) has been renegotiated: extended, reduced in quantum, and lending covenants relaxed.

• RCF amendments preclude dividend declaration until delivery of the 31 March 2025 covenant test.

• Total committed facility reduced by £50 million to £150 million, reflecting lower borrowings after the December 2023 equity raise.

• Termination date of the RCF extended by six months to 14 August 2026.

• Lending covenants for leverage and interest cover have been amended for 2024 and will continue to be tested quarterly.

Outlook and upcoming events

• Interim results for the six months ending 30 June 2024 are expected to be released in late September 2024.

• Second half performance anticipated to improve with major global events and gradual market recovery.

• Continued focus on cost discipline and operational efficiency amid ongoing market uncertainty.