Videndum (LSE:VID) warned on Thursday that full-year revenue and adjusted EBITDA will come in "broadly similar" to the prior year, a further downgrade from the £15 million to £18 million adjusted EBITDA guidance it set alongside July's profit warning.
The London-listed maker of branded hardware and software for the content creation market said trading over the four months to 31 October started promisingly in July but weakened over the following three months, broadly in line with the same period last year.
Delayed customer purchasing decisions, particularly around recently launched products, pushed some customer projects expected to convert into second-half revenue out into 2027, the company said.
Several new product launches have also been pushed back later in the year because of component supply constraints, compounding disruption the group has linked to the conflict in the Middle East.
Production issues at Videndum's Feltre manufacturing facility, flagged at the half-year stage, have now been resolved, though the company said revenue continues to be affected as it works with distribution partners to improve product availability and sales conversion.
"Trading has fallen short of our expectations, and we recognise shareholders' disappointment," said Jan Peter Tewes, who became Group Chief Executive in August and has since been conducting a strategic review of the business.
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Tewes has launched a new self-help programme targeting annualised cost savings of approximately £10 million by 2028, at an implementation cost of around £3 million, built around a simpler, regionally led go-to-market structure.
The programme is intended to improve cash generation, cut inventory and operating costs, and support the group's medium-term ambitions of £350 million in revenue and a mid-teens adjusted EBITDA margin.
Videndum said it continues to maintain good liquidity; at the half-year stage, net debt stood at £39 million, including £24 million of finance leases.