Videndum is positioned right at the heart of the content creation market, with market-leading, premium brands in defensible niches; approximately 90%* of our revenue comes from content creators who use our products to make a living, and about 80%* of our products are often considered to be mission critical to our customers.
The business is committed to continually improving the sustainability of our products and reducing the direct and indirect emissions of the Group. Managing climate change risks is a critical aspect of our global strategy.
Investment case
Videndum is a strong, agile business and the Group’s market-leading brands, operational excellence and sustained technology innovation make us well positioned for significant recovery and improving returns.
- Operating at the heart of the content creation market, which is underpinned by long-term structural growth drivers
- Market leading, premium brands with high quality products in defensible niches, which are often mission critical for customers
- Strong R&D and product development capabilities generate innovative proprietary technology supporting pricing power and leading to shorter product replacement cycles
- Well invested manufacturing footprint, efficient operations and sourcing drive operational leverage
- Global distribution capability ensures efficient route to market
- Experienced senior management team with entrepreneurial culture enables agile and well-informed decision making
- A responsible business with a clear purpose and strategy, committed to sustainability
*Management estimates
Our strategic priorities
Organic growthplus
Despite the challenging situation caused by the US Writers’ and Actors’ Strikes, we are maintaining our investment in key strategic initiatives, focused on faster-growing, high-end professional content creation. Developing technologically advanced products which improve customers’ productivity, by reducing set up time and lowering operating costs, drives demand for new and replacement products. This enables our premium brands to maintain their already strong market positions and, in places, gain share.
Key focus areas include robotics and AI-driven technology for broadcast studio automation, high-end audio capture, wireless video and transmission systems, and a new range of sustainable portable power solutions based on sodium technology. Market growth is being driven by technology advancement driving shorter product replacement cycles and by four different structural growth drivers.
We also continue to invest in our digital capabilities to benefit from the ongoing transition to the higher margin e-commerce channel.
Margin improvementplus
Videndum has been actively managing the business to cut costs and to preserve cash while seeking to ensure we are well placed for recovery now that the US Writers’ and Actors’ Strikes have ended and once productions affected by those strikes restart.
Margin improvement is expected as volumes return, and the Group delivers operating leverage. We will continue to optimise our manufacturing and assembly portfolio, and to review opportunities to deliver cross-Divisional synergies to ensure that the business is well set up for mid and long-term growth.
We are focused on improving operating profit margins towards our long-term mid-to-high teen goal. Now that the US Writers’ and Actors’ Strikes have ended and once the business recovers, the Group’s long-term margin improvement drivers include targeted pricing increases to reflect product quality and brand strength, growing online sales, continued operating efficiencies, and capturing synergies from recent acquisitions.
M&A activityplus
While we remain focused on debt reduction and therefore no acquisitions are expected in the short-term, in the medium to long term we have a disciplined approach to capital allocation, including considering potential divestments as well as targeted bolt-on M&A activity where there are opportunities which could expand addressable markets and enhance technology capabilities.
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