Videndum (VID) H1 2026 earnings summary

Executive summary

• Like-for-like revenue was flat year-over-year at constant currency, excluding discontinued brands and FX impacts, with H1 revenue at £110.3m, down 4% year-over-year.

• Adjusted EBITDA increased to £3.0m, with positive adjusted operating cash flow of £2.3m despite an adjusted operating loss.

• Net debt reduced by £103.0m to £39.3m at 30 June 2026, following an £85m equity raise and debt equitisation/write-off.

• Significant operational disruptions included production line failures at Feltre and deferred Middle East contracts due to regional conflict.

• Appointment of Jan Peter Tewes as Group CEO effective 17 August 2026.

Financial highlights

• Revenue from continuing operations was £109.9m, down 5% from £115.4m in H1 2025.

• Gross margin improved to 36% from 35% year-over-year, benefiting from procurement, restructuring savings, and lower depreciation.

• Operating expenses reduced by 6% to £45.0m, offsetting inflationary pressures.

• Adjusted operating loss narrowed to £4.6m from £7.0m year-over-year.

• Adjusting items delivered a £14.2m profit, mainly from £16.9m debt forgiveness.

Outlook and guidance

• Full-year adjusted EBITDA expected between £15m and £18m, reflecting ongoing trading challenges and production recovery.

• Medium-term targets include revenue exceeding £350m and mid-teens adjusted EBITDA margin, underpinned by operational efficiencies and new product launches.

• Further cost reductions are under consideration.