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(Sharecast News) - Videndum said on Thursday that trading improved in the third quarter as demand picked up and cost savings took effect, while talks with its lenders on a long-term deleveraging plan continued.
The London-listed video and content-creation equipment group reported an 8% year-on-year decline in third-quarter revenue, excluding the one-off impact of the 2024 Paris Olympics, marking a sharp improvement from the 25% fall recorded in the first half.
Order intake strengthened notably in September, rising 6% from a year earlier to its highest level in more than a year, leaving the period-end order book about 40% higher than at the same point in 2024.
Videndum said the benefits of its £19m cost-saving programmes were now flowing through, helping to lift third-quarter EBITDA to 50% above the level achieved in the first half.
The group added that its financial performance was improving and that any recovery in end-market demand would quickly translate into higher revenue given limited inventory in the market.
Its board said expectations for the 2026 financial year remain unchanged.
The company completed the sale of its consumer-facing Joby brand to Vijim during the quarter, generating gross proceeds of about £5m, 80% of which has already been received, with the remainder held in escrow and due within six months.
Net debt at 30 September stood at £139m, including £27m of finance leases.
Videndum said it continued to make "constructive progress" with its revolving credit facility lenders on a deleveraging plan and confirmed that it met its September EBITDA covenant.
It added that discussions remain ongoing, with lenders requesting a trailing 12-month October EBITDA covenant of £10m alongside agreement on the broader deleveraging plan.
The company said it had accepted the "stretching" EBITDA target and expected to make sufficient progress for lenders to waive or defer the requirements if trading or negotiations fall short.
Videndum said it would update the market "as and when appropriate".
At 0942 BST, shares in Videndum were up 23.51% at 45.7p.
Reporting by Josh White for Sharecast.com.
