FTSE 250 company Videndum (LON:VID) is certainly growing at a very good pace.
The international provider of premium branded hardware products and software solutions to the growing content creation market, has reported excellent results for its 2022 Trading Year.
With 90% of its revenue coming from professional content creators, the group showed an impressive 14% growth in sales to £451m (£394m), with a 27% advance in pre-tax profits to £54.0m (£42.4m), taking earnings up 29% to 90.1p (69.9p), enabling an increase of 14% in its dividend to 40p (35p) per share.
CEO Stephen Bird stated that:
“Videndum delivered another record performance, despite a challenging H2 2022 macroeconomic environment. This is testament to the quality of our people, operational excellence and our leading, premium brands which allow us to manage pricing to more than offset inflationary headwinds. We executed well on our strategy, delivering organic growth, margin improvement, good cash generation and growth through M&A.”
The Business
Uniquely positioned at the heart of the content creation market, the group which used to be called The Vitec Group, has been transformed over the last decade.
Videndum’s customers include broadcasters, film studios, production and rental companies, photographers, independent content creators, vloggers, influencers, gamers, professional sound crews and enterprises.
The group’s product portfolio includes camera supports, video transmission systems and monitors, live streaming solutions, smartphone accessories, robotic camera systems, prompters, LED lighting, mobile power, carrying solutions, backgrounds and motion control, audio capture and noise reduction equipment.
Employing some 2,000 people across the world in 11 different countries, the business is organised into three Divisions: Media Solutions, Production Solutions and Creative Solutions.
The fundamental growth drivers of the business have remained very positive, underpinned by technology change driving shorter product replacement cycles.
The group’s market-leading, premium brands allow it to manage inflationary headwinds with pricing actions and to manage its supply chain challenges.
Conclusion – market price estimates of 1500p for the shares
The £423m capitalised group has shown a very impressive trading year in 2022, hopefully it will continue to do so in 2023.
The company’s shares fell 20p to 910p on the results, but there are currently market estimates suggesting a Target Price of over 1500p in the due course.