Videndum profits rise despite headwinds

Video hardware and software maker Videndum, formerly known as Vitec, reported a jump in annual profits.

The company, which makes hardware and software for video for internet streaming, reported a 27% rise in adjusted pre-tax profit to £54m. On a statutory basis profits fell to £24.7m from £29.6m.

Revenue rose 14% to £451.2m.

"We expect that some short-term macroeconomic headwinds will continue to affect our consumer and business confidence more generally, with additional retail destocking and some purchase deferral by independent content creators in H1 2023 however, we are seeing signs of improvement, particularly in the US, said chief executive Stephen Bird.

He added that the company was also acting to streamline the company’s cost base “and deliver cross-divisional synergies to ensure that the business is even better positioned for long-term growth”.

“We therefore expect to deliver a stable FY 2023 adjusted profit before ta* compared to FY 2022, with higher operating profit offset by increased interest charges, albeit with a higher than usual H2 weighting.”

Reporting by Frank Prenesti for Sharecast.com