6th Aug 2025 15:36
(Alliance News) - Videndum PLC shares plunged on Wednesday as it reported a sharp drop in revenue and a wider loss for the first half of the year amid tariff uncertainty.
The London-based provider of broadcasting hardware and software said revenue fell 25% to GBP115.4 million in the six months to the end of June from GBP153.3 million a year ago.
The pretax loss widened to GBP22.9 million from GBP10.8 million.
Shares sank 43% to 60.40p in London on Wednesday afternoon. The shares are down 82% over the last 12 months.
Videndum said revenue was dragged down by "weaker" figures in the US as a result of tariff uncertainty among clients.
It said the terms of its revolving credit facility mean it cannot declare a dividend.
"The board recognises the importance of dividends to the group's shareholders and intends to resume payment of a progressive and sustainable dividend when appropriate to do so," the company said.
The firm said it remains on track for GBP15 million of savings in 2025, with GBP6 million achieved in the first half.
It said the order book continues to build, though it noted that US shipments are restrained due to uncertainty in North America. The cost impact of US tariffs was largely passed on, Videndum added.
"Group revenues were weaker in [the second quarter of] 2025 than the board's expectations at the time of the [2024] results in April 2025. However, much of the adjusted operating profit impact caused by the revenue shortfall was offset by the restructuring and cost management programmes previously announced," said Executive Chair Stephen Harris.
Harris said the ramifications of US trade policy became clearer in the second quarter.
"End user demand in the US is running ahead of sales to Videndum's distribution channels, as importers have been holding off ordering until the tariff situation becomes clearer. This has led to weaker revenues in the United States. Ongoing global macro-economic uncertainty, as well as tariff uncertainty, have also had some impact on revenues outside the US," he said.
Looking ahead, Harris said the uncertain economic environment and increased trading volatility has "led to a deterioration" in the visibility of the potential outcome for 2025.
By Michael Hennessey, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Videndum Plc