Videndum’s purpose is to “enable our customers to capture and share exceptional content”, and this is what guides us. Our strategy is to focus on the professional end of the content creation market, operating in defensible niches where our premium brands have strong share.
The content creation market continues to have good medium-term prospects, with structural growth drivers, and Videndum is uniquely positioned to benefit. Although the cine and scripted TV market is taking more time than anticipated to recover from the strikes, and the consumer and ICC segments of the market are being impacted by the challenging macroeconomic environment, we expect that the demand for, and investment in, original content (e.g. for live news, broadcast sport, reality and scripted TV shows, films, digital visual content for e-commerce and vlogging) will grow in the medium-term.
Our strategic priorities remain unchanged; however, we are focusing more tightly on our core markets, particularly for high-end, professional and B2B content creation – where we see the greatest growth potential – and exiting non-core markets. Our long-term strategy is to invest in areas where we can grow organically, while improving our margins and, over the longer-term, to grow through M&A.
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
Our strategic priorities
Organic growthplus
We focus on the growth areas of the content creation market, and we have recently increased our product offering in the adjacent vertical market of audio capture. We estimate that c.75% of the Group’s business is exposed to five main structural market growth drivers which we believe remain valid in the medium-to-long term. These are: (1) internet/e-commerce; (2) subscription TV/original content creation; (3) video sharing platforms such as TikTok/ YouTube; (4) live streaming; and (5) increasing environmental consciousness in our markets.
We expect organic growth to be driven by these five drivers underpinned by technology advancement which reduces product replacement cycles. We use our customer-led R&D expertise to develop innovative, differentiated technology to improve customers’ productivity by developing products which can lower operating costs and unlock creativity. Key focus areas include robotics and AI-driven technology for broadcast studio automation, high-end audio capture, wireless video transmission systems, heavy-duty lighting stands, and a new range of sustainable portable power solutions based on sodium technology (Anton/Bauer’s Salt-E Dog) for the cine and scripted TV, broadcast and other markets. Salt-E Dog received the “Excellence in Sustainability” Award at the National Association of Broadcasters (“NAB”) annual show in Las Vegas in April 2024. We also leverage our sales organisation to expand geographically where markets are growing, and our presence is low; whilst recognising barriers to entry of this strategy.
Margin improvementplus
The Group continues to manage costs tightly, and control capital expenditure and working capital. Long-term margin improvement drivers include targeted pricing increases to reflect product quality and brand strength, growing online sales, continued operating efficiencies, and capturing cross-Divisional synergies. Exiting non-core unprofitable segments (gaming and medical) will also deliver improved margins.
M&A activityplus
While we remain focused on post-strike recovery no acquisitions will occur in the near-term. However, we will continue to review opportunities which could increase our addressable markets and expand our product portfolio, customer base and technology capabilities.
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