Videndum has been transformed over the last ten years through a combination of organic development and acquisitions and is now positioned at the heart of the growing content creation industry.
Videndum’s long-term strategic objectives are to deliver organic growth, improve margins and, over the longer term, to grow through M&A (once debt has been reduced and the macroeconomic environment has started to improve). It is focusing more tightly on its core markets, particularly for the high-end professional and B2B segments—where the Group sees the greatest growth potential—and exiting non-core markets.
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.
Our strategic priorities
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.
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.
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.