Videndum (LSE:VID), a provider of hardware and software for the content creation market, said it now expects full-year adjusted EBITDA of between £15 million and £18 million, citing ongoing challenging trading conditions.
The downgrade accompanies half-year results due 5 August, which are expected to show revenue in line with the prior year on a like-for-like basis and adjusted EBITDA modestly ahead of the same period in 2025.
Trading in the first half was hit by disruption from the Middle East conflict, which raised logistics costs, lengthened delivery times and delayed customer purchasing decisions.
Production problems at the company's Feltre manufacturing facility compounded the issue, pushing some sales into the second half, though Videndum said the majority of those production issues have now been resolved.
Net debt stood at £39 million at 30 June, including £24 million of finance leases, with the Group describing its liquidity as good.
Management said it has continued taking self-help actions to improve commercial execution, optimise inventory and cut costs.
Alongside the update, Videndum named Jan Peter Tewes as Group Chief Executive Officer from 17 August, joining from Villeroy and Boch, where he led post-acquisition integration following the takeover of Ideal Standard, where he was previously chief executive.
Stephen Harris, Group Chairman, will revert to a non-executive role from the same date.
"He brings significant leadership experience, a strong brand and channel management track record, a proven ability in driving operational excellence and the expertise to lead the Group through its next phase", Harris said.
Half-year results are due 5 August.
News Intelligence what this means for the company
Videndum has cut full-year adjusted EBITDA guidance to £15–18 million, citing Middle East conflict disruption and production problems at its Feltre facility that pushed sales into H2. The appointment of Jan Peter Tewes as CEO signals management change, but the profit downgrade and acknowledgment of 'ongoing challenging trading conditions' indicate near-term headwinds persist despite claimed resolution of most manufacturing issues.
The guidance cut materially narrows earnings expectations and underscores execution risk in the content creation hardware market. While management cites self-help actions and improving production, the need for a new CEO and the persistence of demand-side disruption (delayed purchasing decisions) suggest operational challenges extend beyond supply-side fixes.
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