Videndum (LON:VID) reported a difficult first half of 2026, with revenue broadly flat on a like-for-like constant-currency basis after adjusting for discontinued brands, while production issues, delayed Middle East projects and freight-cost disruption weighed on sales.
Chairman Stephen Harris said the company generated EBITDA of £3 million and £2.3 million of adjusted operating cash flow despite recording an operating loss. Net debt declined by £103 million to £39.3 million, including lease liabilities, following the completion of a refinancing during the period.
Production disruption and deferred sales
Some demand was deferred into the second half, although Harris said the company could not determine how much business may have been lost to customers purchasing alternative products while supplies were unavailable.
The company also experienced delays in its Middle East broadcast business. Videndum had won contracts to equip large studios in the region, but the conflict prevented the company from delivering equipment and sending staff to commission installations. Harris said these projects, worth several million pounds, were pushed into the second half.
Higher freight and logistics costs also affected customer purchasing, particularly in North America. Some distribution channels delayed orders while awaiting lower shipping rates and ran down their inventories, Harris said. Those customers began buying again at the end of June, and the company viewed this disruption as a deferral rather than a loss of business.
Revenue and operating performance
Revenue was £109.9 million in the first half. Harris said discontinued JOBY and National Geographic brands accounted for a £4.3 million reduction in volume. Major sporting events, including the Olympics and World Cup, contributed an additional £5.5 million in sales, with further related volume expected in the second half.
Videndum also recorded £5.3 million of volume declines in certain product areas and a £1.4 million foreign-exchange impact. Harris identified photographic paper as a declining category, saying technology has reduced photographers’ need for multiple colored paper backdrops. The company also saw lower sales in lighting and certain older bag products, although it expects the bag business to recover in the second half.
Harris said sales through distribution channels were rising in support products, while the cine business was showing growth. Broadcast activity outside the Middle East was also beginning to improve, he added.
Gross margin increased to 36%, supported by procurement savings and restructuring initiatives launched in 2025, according to Chief Financial Officer Brian Morgan. Operating expenses declined year over year as restructuring savings more than offset salary and other inflation, including approximately 4% wage and salary inflation during the half.
Videndum achieved about £3.5 million in additional cost savings during the first half and said it remained on track to deliver £8 million of full-year savings. Harris said the company was considering further cost reductions. Inventory fell by £10 million as the group continued to focus on inventory optimization.
Refinancing strengthens balance sheet
Videndum completed an £85 million equity raise on March 30. Morgan said the refinancing also included £21.9 million of debt equitized by a lender and £16.9 million written off by lenders, reducing net debt by £110 million overall.
The group paid £26 million in refinancing fees during the process, including £17 million in 2026. After the refinancing, Videndum repaid the £13.5 million Tranche B term loan using capital-raise proceeds. Its facilities now comprise a £31.5 million three-year term loan and a £15 million three-year revolving credit facility.
The only covenant on those facilities through March 2028 is a £5 million minimum-liquidity requirement. Liquidity stood at £25 million at the end of June, Morgan said.
Videndum generated positive operating cash flow in the first six months, compared with an outflow in the prior-year period. Morgan said further working-capital inflows were expected in the second half as the company continued to reduce inventory and manage supplier and customer terms.
In May, the group transferred the assets and liabilities of its U.K. defined-benefit pension scheme to Clara Pension Group Limited. Morgan said the transaction secured members’ pension arrangements while removing future funding calls and administration costs for Videndum. The transfer resulted in a £3.3 million accounting loss after the pension asset and transfer costs were written off.
Strategy, leadership and outlook
Videndum is focusing on professional content-creation markets after exiting retail and consumer markets through the sale of JOBY and discontinuation of other products. Harris said the company had stopped research and development spending in non-core categories and was accelerating innovation in its core businesses, with 26 new product lines planned for release this year.
The company is also expanding sales channels and geographic coverage, particularly in Asia, while pursuing product-cost reductions, SKU rationalization and operational efficiencies.
Harris announced the appointment of Jan Peter Tewes as group chief executive, effective Aug. 17. Harris will return to the role of non-executive chairman and said he would support Tewes’ onboarding.
Looking ahead, Harris said Videndum expected performance to improve in the second half and characterized the first-half result as a one-off. The company maintained its medium-term target of £350 million in sales and mid-teen EBITDA margins.
About Videndum (LON:VID)
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.
