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Enabling the
capture and
sharing of
exceptional
content
Annual Report
and Accounts 2022
Capture.
Share.
Our purpose is to enable
the capture and sharing
of exceptional content.
Discover our Divisions:
Media
Solutions
Production
Solutions
Creative
Solutions
See page 20 See page 26 See page 30
Videndum plc Annual Report and Accounts 2022 01
videndum.com
We are a leading global provider of
premium branded hardware products
and software solutions to the
growing content creation market.
Contents
Strategic Report
2022 financial highlights 02
Our global footprint 04
About us and our brands 06
Strategic framework 08
Business model 09
Market opportunity 10
Stakeholder value creation 12
Chairman’s welcome 14
CEO’s review 16
Media Solutions 20
Production Solutions 26
Creative Solutions 30
Operational and financial review 34
Key Performance Indicators 42
Principal risks and uncertainties 44
Responsible business 50
Governance framework 52
ESG targets 54
Videndum’s roadmap to net zero 56
Task Force on Climate-related
Financial Disclosures report (“TCFD”) 57
Environment 70
Our people 72
Giving back 76
Responsible practices 78
Non-Financial Information Statement 81
Corporate Governance
Chairman’s statement 82
A snapshot of governance 84
Board of Directors 86
Leadership, purpose, values and culture 88
The role of the Board 90
Key Board activities in 2022 94
Section 172 statement 96
The Board and our stakeholders 97
The Board’s major decisions in 2022 100
Division of responsibilities 102
Composition, succession and evaluation 105
Nominations Committee report 109
Audit, risk and internal control 113
Audit Committee report 116
Remuneration report 122
Directors’ Remuneration Policy 128
Annual Report on Remuneration 138
Directors’ report 159
Financial Statements
Independent auditor’s report 163
Introduction and table of contents 170
Primary statements 171
Section 1 – Basis of Preparation 176
Section 2 – Results for the Year 178
Section 3 – Operating Assets and Liabilities 187
Section 4 – Capital Structure 197
Section 5 – Other Supporting Notes 206
Company Financial Statements 216
Glossary of Alternative Performance Measures 224
Five Year Financial Summary 229
Shareholder Information and Financial Calendar 230
Cover image: Josefin Kuschela
Image above: Felix Belloin
Strategic Report02
2022 ﬁnancial highlights
Revenue
£451.2m
Up 14%
2022
2021
2020
£451.2m
£394.3m
£290.5m
Adjusted operating proﬁt*
£60.0m
Up 30%
2022
2021
2020
£60.0m
£46.2m
£9.9m
Statutory operating margin
7.0%
Down 150 bps
Adjusted basic Earnings PerShare*
90.1p
Up 29%
Statutory operating proﬁt
£31.5m
Down 6%
Basic Earnings Per Share
71.4p
Up 27%
Recommended ﬁnal dividend
pershare
25.0p
Up 4%
Adjusted operating margin*
13.3%
Up 160 bps
Interim dividend per share
15.0p
Recommended total
dividend pershare
40.0p
Up 14%
Net debt*
£193.5m
2022
2021
2020
£193.5m
£145.2m
£90.8m
Read more on page 35
* In addition to statutory reporting, Videndum plc reports Alternative Performance Measures (“APMs”) which are not defined or specified under the requirements of International Financial
Reporting Standards (“IFRS”). The Group uses these APMs to aid the comparability of information between reporting periods and Divisions, by adjusting for certain items which impact
upon IFRS measures, to aid the user in understanding theactivity taking place across the Group’s businesses. APMs are used by the Directors and Management for performance analysis,
planning, reporting and incentive purposes. A summary of APMs used and their closest equivalent statutory measures is given in the Glossary on pages 224 to 228.
Videndum plc Annual Report and Accounts 2022 03
Key points
– Delivered operating cash conversion*
of83%.
– As expected, net debt* increased due
toM&A activity and exchange rates.
– Net debt to EBITDA of 2.1x (loan
covenants basis).
– Progressive total dividend of 40.0p
pershare (+14%).
.
2022 financial highlights
– Record revenue (+14%) and adjusted
proﬁt before tax* (+27%).
– Organic, constant currency revenue
slightly ahead of last year, despite
soness in the consumer segment
(c.10% of Group revenue) and some
retail destocking.
– Executing on our M&A strategy
withacquisitions integrated well.
– Adjusted operating margin*
progression (+160 bps); pricing again
more than oset inﬂation and a
continued well-managed cost base.
Strategic positioning and outlook
– Uniquely positioned at the heart of the
growing global content creation market.
– Continued adjusted operating margin*
improvement.
– Additional opportunities identiﬁed for
anumber of self-help actions to further
streamline our cost base and deliver
cross-Divisional synergies.
– Expect stable FY 2023 adjusted proﬁt
before tax*, with higher operating proﬁt
oset by increased interest charges;
higher than usual H2 weighting due to
current macroeconomic environment.
Image: Josefin Kuschela
Strategic Report04
Costa Rica
Israel
Germany
Singapore
Australia
New Zealand
China
Japan
Italy
UK
US
2022
Our global footprint
We employ around 1,900
people in 11 dierent countries
and are organised in three
Divisions: Media Solutions,
Production Solutions and
Creative Solutions.
2022 revenue
Where we operate Our core values
Sites in 11 countries; sell into
100+ countries
Sales: UK accounts for only 9%
ofGroup revenue
R&D centres in Italy, UK,
US, Israel and New Zealand
Well capitalised, world-class
manufacturing facilities in Italy,
Costa Rica, UK and US
Far East Procurement Centre
(Shenzen, China)
Sourcing from APAC,
predominantly China and Vietnam
We have a clear purpose that is founded on a set of core values that
form the Videndum Mindset: “Enabling the capture and sharing of
exceptional content”.
Exceptional product performance
We set the highest standards of
technical performance
Customer focus
We are nothing without our customers
Leading a fast-changing market
We apply our creativity and harness
our diversity to engineer innovative
new products and solutions
Global capability
We share knowledge, pool resources,
test ideas and learn from each other
Transparency, integrity, respect
We hold to the highest professional
and corporate standards
Environmental consciousness
We seek to limit our impact on the
environment and create long-term
business sustainability
North America: 45%
Europe: 35%
APAC: 16%
Rest of world: 4%
Videndum plc Annual Report and Accounts 2022 05
Costa Rica
Israel
Germany
Singapore
Australia
New Zealand
China
Japan
Italy
UK
US
People and culture
Videndum’s clear strategy, simple
structure and entrepreneurial culture
enable us to adapt quickly to change,
constantly innovating to make our
products the best in our industry.
Our employees are key to our success.
Their attitude and abilities, experience
and market knowledge, and talent
andcommitment create a culture of
technology innovation, operational
excellence, creativity and integrity.
The Group has a decentralised
structure with three Divisions, which
allows us to react quickly to customer,
market and technological changes.
This, together with our entrepreneurial
culture, enables focused decision-
making and minimised bureaucracy.
We work across the Group to ensure
that we have consistent policies and
processes in place to acquire, engage
and retain our best talent. We have
comprehensive operating guidelines
and internal communication plans
toinform and retain the trust of our
employees, and we work with our
manufacturing teams to ensure
stringent health and safety protocols.
We are a responsible business, focusing
on supporting the communities we
operate in and further reducing our
impact on the environment.
The environment here is
international, professional,
positive and dynamic.
There is a strong
performance culture and
values such as integrity,
respect and ethical
behaviour are present at
every level of the business.
Francesca Borsatto
Human Resources Director,
Videndum Media Solutions, Italy
Videndum manufacturing,
R&D and procurement sites
Distribution sites
Read more on page 72
Strategic Report06
About us Our brands
We design and manufacture
a portfolio of market-leading,
premium brands – from
traditional mechanically
engineered products through
to electronics and software –
to enable our customers to
capture and share content,
whatever the conditions.
Our core customers
Professional photographer/
videographer, including prosumer
Creating and sharing digital
content for social media platforms
or retail e-commerce, where
images and videos of new products
are frequently published online
Influencer/vlogger or gamer
Creating and sharing video and
audio content on social media
platforms like TikTok, YouTube,
Instagram and Twitch
TV broadcaster, production
company, independent content
creator and professional sound
crew
Producing video and audio content
for TV programmes, live news or
live sports events
Film or production company,
including independent
film-makers
Making content for feature films
and scripted TV shows to share
incinemas or on subscription
channels like Netflix, Amazon Prime
Video, Apple TV+ and Disney+
Live streaming enterprise,
including government, healthcare
provider, education establishment
or house of worship
Creating video and audio content
to stream live or pre-recorded
to their employees, customers
and communities
For more information visit our website:
www.videndum.com/about-us/
our-brands
Audio capture
Audix
JOBY
Rycote
Distribution,
rental & services
Camera Corps
The Camera Store
IP video
Teradek
Monitors
SmallHD
Robotic camera
systems
Camera Corps
Vinten
Mobile power
Anton/Bauer
Prompters
Autocue
Autoscript
Videndum plc Annual Report and Accounts 2022 07
Video transmission
systems
Teradek
Lens control systems
Teradek
Lighting and
lighting control
JOBY
Litepanels
Manfrotto
Quasar Science
Live streaming
Lightstream
Teradek
Backgrounds
Colorama
Savage
Superior
Camera accessories
Teradek
Wooden Camera
Smartphonography
JOBY
Carrying solutions
Gitzo
Lowepro
Manfrotto
National Geographic*
Sachtler
Supports and
stabilisers
Avenger
Gitzo
JOBY
Manfrotto
National Geographic*
OConnor
Sachtler
Vinten
* Manufactured under licence.
Our brands are leaders in the markets we serve, both in terms of premium products and market
share. Our products typically attach to, or support, a camera – primarily for broadcast, cinematic,
video, photographic, audio and smartphone applications – and are oered as a cohesive package.
Strategic Report08
Driving long-term
successthrough strategic
focus and clarity.
I’m proud to collaborate
with a diverse group of
hard-working and talented
professionals who truly
believe in the power of our
products to help create
meaningful content
worldwide. It’s fulfilling
to be part of a team so
focused on innovation,
customer service, global
distribution and
sustainability.
Rich Reiser
Managing Director – Americas,
Videndum Media Solutions, US
It’s inspiring to work with
a team of high calibre
engineers on a daily basis
to help design, manufacture
and market a range of
industry leading products.
Michael Herbert
Senior Product Manager – Lighting,
Videndum Production Solutions, UK
Strategic framework
Market opportunity page 10
The structural growth drivers of our markets.
Stakeholder value creation page 12
A focus on our business community.
Strategic ambition page 16
A platform for growth.
ESG strategy page 50
A commitment to working responsibly.
Our people page 72
A culture supporting product excellence,
creativity and integrity.
Videndum plc Annual Report and Accounts 2022 09
1.
2.
3.
Business model
Designing innovative solutions to make our customers’ lives easier is what drives us.
Innovative product development
Intelligent and sustained investment
innew products, technologies, markets
and people enables us to ensure that
ourbrands remain at the forefront of
theindustry, renowned for their premium
oerings and innovative technology.
We continually obtain feedback on market
trends, competitors and their products,
from customers, as well as from research.
Our experienced, specialist engineers apply new
technologies and materials to develop high-
quality, high-performance solutions. Videndum
takes product quality and customer safety very
seriously and our products are manufactured
to the highest standards and rigorously tested.
We are integrating sustainable product
development into our brand strategies
using a “cradle-to-grave” Product Life Cycle
Assessment (“PLCA”). This includes evaluating
raw materials, manufacturing processes,
waste, packaging, distribution and end-of-life.
Our innovative products are protected by
patents and trademarks, and are marketed
under our world-renowned brands.
We manufacture the majority of our products
in-house and work with selected, market-
leading partners for specialist solutions. We
supplement in-house new product development
with carefully selected acquisitions or
partnerships in new markets and technologies.
Sourcing and manufacturing excellence
Sourcing and manufacturing excellence is one
of Videndum’s core competitive strengths. Our
three major manufacturing sites in the UK, Italy
and Costa Rica are certiﬁed ISO 9001 Quality
Management, ISO 14001 Environmental
Management and ISO 45001 health and safety.
Our supply chain is ecient, our people
highly trained and multi-skilled. We procure
materials from reputable suppliers, and make
our products in ecient and environmentally-
friendly operations and, where appropriate,
manufacture or source from lower-cost
countries such as Costa Rica. Where
economically and technically feasible, we
insource production, especially when our sites
have stronger environmental credentials than
those of our ﬁnished goods suppliers. This helps
to improve the Group’s overall carbon footprint.
The majority of our operations are relatively
low-volume, small-batch processes and our
continuous improvement culture enables
us to optimise our global operations
and implement lean manufacturing and
automation to maximise quality, service
and eciency, while reducing costs. Most of
our factories are vertically integrated which
means we produce many of our components
in-house. The 2022 acquisition of Audix
expanded our manufacturing footprint
in the USA which is a key enabler of our
audio strategy. We operate a Group Global
Sourcing Oce in Shenzhen, China where
the team supports vendor management,
quality control and product development with
strategic vendors across APAC. This further
enhances productivity and time to market.
Global distribution
We market and sell our products globally via
multiple distribution channels, our own sales
teams, and through e-commerce via our own
and third-party websites.
The majority of our sales are conducted via a
global network of distributors, dealers, retailers
and e-tailers who sell on to customers. The
breadth of our product portfolio and our strong
brand heritage mean that our network of channel
partners is unrivalled in the markets we serve.
We continue to expand our growing digital and
e-commerce capabilities, working closely with
our customers and suppliers to further develop
our online presence.
Our Media Solutions Division has best-in-
industry digital capabilities which provide a
long-term, scalable competitive advantage,
both in terms of customer ownership (via a
Customer Relationship Management System
(“CRM”) across multiple brands) and because
our competitors are unable to match our
content production and global customer service
capacity across multiple product categories.
We engage with a number of leading logistics
partners to ensure responsive and timely
delivery of our products to the relevant
geography, and remain conscious of the impact
of our distribution channels on the environment.
Strategic Report10
Market opportunity
Approximately 90% of our revenue comes
from professional content creators and about
80% of our products are considered to be
mission critical to our customers.*
The Group is exposed to strong market growth
drivers as the content creation market is now larger
and expected to grow faster than pre-pandemic.
Organic growth is being driven by technology
advancement and by the significant changes in
the way people capture, consume and share content.
We estimate that 75% of the Group’s business is
exposed to four main structural market growth
drivers, which have all been experiencing double-digit
growth. We continue to develop innovative new
technology to improve our customers’ productivity
by developing products which reduce set up time and
lower operating costs. This is becoming increasingly
important to our customers and drives demand for
new and replacement products. The Group’s Total
Addressable Market (“TAM”) has increased from
c.£2 billion pre-pandemic (2019) to c.£3 billion and,
as previously stated, it is expected to grow high single
digit in the medium term, compared to low single
digit pre-pandemic, although with a slower growth
rate in 2022–23 due to macroeconomic headwinds.
Videndum is uniquely
positioned at the
heart of the content
creation market,
with market-leading,
premium brands in
defensible niches.
Read more on page 16
* Management estimates.
Videndum plc Annual Report and Accounts 2022 11
Technology advancement driving
shorter product replacement cycles
Sustained R&D investment in innovative new technology to
improve our customers’ productivity is key to enabling our
premium brands to maintain their already strong market
positions and, in places, gain share. Last year, about half of
our revenue came from new products launched in the last
three years.
These four market growth drivers above, plus technology
advancement, mean that our business has been growing in
three key ways. First, our core businesses, e.g. professional
photography, broadcast TV and on-set monitoring.
Second, growth in new areas, e.g. vloggers and professional
influencers, or on-camera microphones, which are crucial to
enhancing the quality of video content being shared. Third,
growth in new verticals enabled by video transmission and
live streaming. Here, we are expanding into new market
segments with our Amimon live streaming technology,
expanding from just cine on-set monitoring to broadcasting,
medical, industrial and other enterprises.
The internet
Retail e-commerce drives demand for digital visual content as
new products need to be photographed and filmed frequently
to be published online, for example across the fashion, food,
real estate and hospitality industries.
We estimate that c.30% of the Group’s revenue is exposed
toretail e-commerce which we serve with intuitive products
used in studios and a growing number of enterprise facilities.
This drives demand for our professional photography and
videography equipment, including supports, backgrounds,
lighting and carrying solutions, mainly benefiting our Media
Solutions Division.
TikTok and YouTube
There has been significant growth in vloggers and influencers
creating and sharing video and audio content on social media
platforms like TikTok and YouTube. We estimate that there are
more than 40 million vloggers (with a following of over 1,000
people) who share and monetise their videos or podcasts.
Improving the quality of their content is enormously important
to their success – and that is what Videndum products help
them do.
We estimate that c.10% of the Group’s revenue is exposed to
vloggers and influencers who use our JOBY supports, lights
and microphones, and our backgrounds to create high-quality
content. The JOBY customers of today will potentially
transition to Videndum’s other premium brands, as they
become the film-makers, broadcasters and professional
photographers of the future.
Subscription TV
Spending on original content creation for subscription TV
channels like Netflix, Amazon Prime Video and Disney+ drives
demand for our equipment.
We estimate that c.30% of the Group’s revenue is exposed
to subscription TV, including: our video transmission and
monitoring systems, and camera accessories in Creative
Solutions; lighting equipment, mobile power and supports
in Production Solutions; and supports and audio capture
inMedia Solutions.
Live streaming
Live streaming of video has grown strongly across multiple
verticals, such as broadcasting, medical, industrial and
gaming to maintain communications and facilitate remote
collaboration. For example, governments, schools, houses
of worship and businesses rely on high-quality, secure, zero
or low delay video transmission to communicate with their
communities, customers and employees.
This market growth driver accounts for c.5% of the Group’s
revenue and is increasing. There is a high demand for remote
wireless video within hospital operating rooms, where
Amimon’s proprietary zero delay technology is being used
by the leading medical equipment providers.
Creative Solutions has developed a new high end streaming
technology called ART (“Adaptive Reliable Transport”) which
delivers secure, ultra-low latency, broadcast-quality video and
audio for mission-critical video transport over public networks.
The team is working on miniaturising ART into smaller devices
and to embed ART across the Teradek product range.
Strategic Report12
Stakeholder value creation
A strong understanding of our
stakeholders and their views is integral
to Videndum’s strategic planning
and operational delivery. Our key
stakeholder groups are set out below:
Customers Suppliers Employees
Our success is dependent
on our ability to understand
and respond to our customers’
needs. They include
broadcasters, film studios,
photographers, independent
content creators (“ICCs”),
vloggers, influencers, gamers,
professional sound crews
and enterprises.
We have a large number
ofsuppliers globally, as the
majority of our operations are
relatively low-volume, small
batch processes. We source
materials from suppliers close
to our manufacturing facilities
where possible.
Our employees are the
bestinthe sector, our single
greatest asset and critical
to our success. We aim to
offer a safe, inclusive and
engaging work environment.
2022 outcomes and highlights
– Delivered strong business
performance and issued several
trading updates during the year
demonstrating strong demand
andinterest from end markets.
– Expanded into new end markets –
notably high end on-camera audio
capture, where our strategy was
enabled by the acquisition of Audix
inJanuary 2022.
– Launched innovative new products
with c.50% of the Group’s revenue
coming from products launched in
thelast three years.
2022 outcomes and highlights
– 2022 saw continued pressure on
supply chains but our businesses
successfully managed this via
strongworking relationships and
closecontact with key suppliers,
andsourcing alternative suppliers
where necessary.
– Videndumhas developed a Group-
wide methodology for evaluating
suppliers on all dimensions of ESG.
2022 outcomes and highlights
– Employees felt safe and protected in
our facilities as the pandemic subsided
and staff returned to work.
– 2022 employee survey demonstrated
high level of engagement and
employee satisfaction.
– Ensured those working from
homehad the IT support required;
introduced Microsoft Teams as a
newcommunications tool.
– Offered competitive incentives
andopportunities for personal
development and career progression.
– Published our first standalone
ESGand TCFD report.
Our Section 172 statement, which sets
out how the Board takes stakeholder
interests into account when making
decisions, can be found on page 96
Group Chief Executive review and
Divisional operating reviews on
pages 16 to 19 and 20 to 33
Employee engagement led by Caroline
Thomson on pages 73 and 98
Employee survey overview on page 73
Diversity information on page 74
Health and safety in Videndum on page 75
Whistleblowing service on page 79
Responsible practices on page 78
Videndum plc Annual Report and Accounts 2022 13
Videndum has provided fantastic opportunities to learn
and develop my skills. I have had some great managers
who have pushed me out of my comfort zone and helped
with my career progression from a Mechanical Engineer
to managing a team of 18 as Head of Mechanical
Engineering for Videndum Production Solutions.
James Guest
Head of Mechanical Engineering, Videndum Production Solutions, UK
Communities Shareholders
We have a number of
manufacturing and office
facilities around the world
and aim to support the
communities we work in,
limiting any negative impact
on the environment and
protecting natural resources
to create long-term
sustainability for the business.
Videndum maintains close,
open and regular contact
with our shareholders.
Shareholders play an
important role in helping
to shape our strategy
andmonitor governance.
2022 outcomes and highlights
– Videndum committed to becoming
carbon net zero by 2035 for
Scope 1 and 2 emissions.
– Approved science-based targets,
aligned to limit global warming
to1.5°C.
– ESG Committee oversees
ourEnvironmental, Social
andGovernanceprogramme.
– By implementing smarter ways
ofworking and investing in
infrastructure, we have already
achieved a greater than 20%
reduction across the Group’s
Scope 1 and 2 emissions since 2019.
2022 outcomes and highlights
– Results presentations, investor
roadshows and meetings held
virtuallyor in person.
– Capital Markets Day held in June
2022at the London Stock Exchange,
showcasing new products and
presenting Strategic Ambition.
– Engagement with investors
and analysts.
– Annual General Meeting held in
personfollowing the pandemic,
withall resolutions approved
byshareholders.
– Regular updates given to the
marketon business performance.
More information on our community
and environmental initiatives can be
found in the Responsible business report
on pages 70 to 71 and 76 to 77
Further information on page 97
Image: Felix Belloin
Strategic Report14
Chairman’s welcome
2022 was a year of significant
progress for Videndum, despite
the current macroeconomic and
geopolitical uncertainties.
Ian McHoul
Chairman
Videndum continued its recovery
from the pandemic, delivering strong
ﬁnancial results for the year, and
is committed to long-term growth.
Videndum’s market-leading, premium
brands, highly skilled and motivated
workforce, and the strength of the
growth drivers in the content creation
market give the Board conﬁdence for
the Group’s continued future success.
Videndum delivered record revenue
and adjusted proﬁt before tax* in
2022, despite the challenges faced
during the year, and our detailed
ﬁnancial performance is set out in this
Annual Report. On the strength of this
performance, the Board recommends
a ﬁnal dividend of 25 pence per
ordinary share which, subject to
shareholder approval at the 2023
AGM, will be paid on 19 May 2023.
In June, we held a Capital Markets
Day that set out our strategic and
ﬁnancial ambitions for 2025. While
2022 had increasing challenges,
especially in the second half of the
year, we remain committed to this
ambition, however the timing is likely
to be delayed due to the current
macroeconomic environment.
Aer the AGM in May, we changed
the Company name to Videndum,
dierentiating ourselves from other
companies around the world who also
operate under the Vitec name. The
new name and associated branding
were successfully rolled out in 2022
and provided a platform for us to
recommunicate our Code of Conduct
to our employees and stakeholders,
setting out our values and what can
be expected of Videndum. For any
organisation to be successful it must
have the right values and behaviours
in place and Videndum’s Code is
central to our governance and culture.
The Governance section of this
report covers this in greater detail.
During 2022, for the ﬁrst time since
the pandemic, the Board visited two
of our key operations. First, in June
we visited the Production Solutions
site at Bury St Edmunds, UK and
in September we visited our Media
Solutions operations in Feltre and
Cassola, Italy. These visits were
exceptionally important and enabled
your Board to see operations ﬁrst-
hand and to meet with a wide
number of employees. Such visits
are invaluable to build knowledge
and understanding, and to ensure
that the right values and culture
exist within Videndum. Further
Board visits to our operations will
take place in 2023 and beyond.
2022 also saw signiﬁcant progress
on Board succession. Duncan Penny
stood down as an independent Non-
Executive Director at the conclusion
of the 2022 AGM in May. Christopher
Humphrey, aer nine years’ service
as an independent Non-Executive
Director, Chair of Audit Committee
and Senior Independent Director, stood
down from the Board on 14 December
2022. On behalf of the Board and our
shareholders, I would like to thank Chris
for his service to the Company in these
roles. We appointed Erika Schraner,
with eect from 1 May 2022, as a new
independent Non-Executive Director,
and successor to Chris as Chair of the
Audit Committee. Richard Tyson further
succeeded Chris as Senior Independent
Director. On 24 November 2022,
we appointed Teté Soto as a new
independent Non-Executive Director
Videndum plc Annual Report and Accounts 2022 15
and in December 2022 announced
that Anna Vikström Persson will
join the Board with eect from
1 May 2023 as an independent Non-
Executive Director. These changes
have refreshed the independent
Non-Executive members of your Board
and demonstrate continued progress
around succession planning and diversity.
On 14 December 2022, we announced
that Martin Green had stood down
from the Board as Group Finance
Director and that he will leave the
Group in 2023, aer 20 years’ service.
Martin was succeeded on the Board
by Andrea Rigamonti, as Group
Chief Financial Ocer. The Board
and I would like to thank Martin
for his service and contribution to
the growth of the Group, and wish
Andrea every success in this role.
2022 was our ﬁrst face-to-face AGM
since 2019, due to the pandemic.
The 2023 AGM will be held on
11 May 2023 at 41 Portland Place,
London, W1B 1QH and the enclosed
Notice of Meeting sets out details
for the meeting including business
to be covered. I look forward to
seeing as many shareholders as
possible at the 2023 AGM.
Finally, it is my pleasure on behalf
of the Board, to thank all of our
employees for their dedication,
passion and hard work. They
have driven Videndum forward to
achieve the signiﬁcant progress in
2022 and towards achieving our
strategic and ﬁnancial ambitions.
Ian McHoul
Chairman
27 February 2023
Investment case
Videndum is uniquely placed to take advantage of the
growing content creation market and deliver long-term
sustainable growth and value to our stakeholders.
Market-leading, premium brands with innovative and
proprietary technology in defensible niches
Organic growth driven by the Group’s exposure to strong
market trends and technology advancement driving
shorter product replacement cycles
Margins on track to mid-to-high teen level as volumes
grow and we deliver operating leverage
Strong M&A track record and disciplined approach to
capital allocation
A responsible business with a clear purpose and strategy
Strategic Report16
Revenue
c.£600m
Operating proﬁt
>£100m
Net debt: EBITDA
<1.5x
Operating proﬁt
margin
16-18%
CEO’s review
Organic strategic ambition
*
Our strategy
1. Organic growth
Market growth is being driven by
technology advancement driving
shorter product replacement cycles
and by four different structural
growth drivers, all growing double-
digit; 75% of the Group’s business
isexposed to these. We invest in
innovative new technology in the
faster-growing areas of the market
to enable our premium brands to
maintain their already strong market
positions and, in places, gain share.
We also continue to invest in our
digital capabilities to benefit from
the ongoing transition to the higher
margin e-commerce channel.
2. Margin improvement
We are focused on improving our
operating profit margins towards
our mid-to-high teen goal as
volumes grow and we deliver
operating leverage. Our margin
improvement drivers include
targeted pricing increases to reflect
product quality and brand strength,
growing online sales, continued
operating efficiencies, in-sourcing,
driving margin improvements in
ourCreative Solutions Division,
andcapturing synergies from
acquisitions. We also intend to take
a number of self-help actions to
further streamline our cost base and
deliver cross-Divisional synergies to
ensure that the business is well set
up for continued long-term growth.
3. M&A activity
We have a strong M&A track
recordand a clear capital
allocationstrategy.
* Subject to no significant deterioration in market conditions.
Videndum plc Annual Report and Accounts 2022 17
We executed well on our strategy,
delivering organic growth, margin
improvement, good cash generation
and growth through M&A.
2022 financial overview
The Group achieved record revenue
and adjusted profit before tax*
despite some significant headwinds,
including weakening consumer
confidence as the year progressed.
This most significantly impacted
revenue from our non-professional
customers, which represents c.10%
oftotal Group revenue. Business
confidence was also low in H2 and
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.
Stephen Bird
Group Chief Executive
asaresult, we saw retailer destocking
across all Divisions but predominantly
inMedia Solutions.
These external factors meant that
fullyear organic, constant currency
growth was 1%. The acquisitions
ofSavage and Audix have been
successfully integrated and
contributed to full year revenue
growth of 8% on a constant currency
basis, and 14% on a reported basis.
The drop through from higher
revenuecombined with tight control
of the cost base delivered a 160 bps
increase in the adjusted operating
margin* to 13.3%. There was a
24%drop through of revenue to
profiton a reported basis, which
was40% at constant currency.
Adjusted profit before tax* included
a£3.6 million favourable foreign
exchange effect after hedging
compared to 2021, due to a stronger
USDollar partly offset by a slightly
weaker Euro than in 2021. The impact
on 2023 adjusted profit before tax*
from a one cent stronger/weaker
USDollar/Euro is expected to be an
increase/decrease of approximately
Image: Felix Belloin
Strategic Report18
CEO’s review continued
£0.3 million and £0.3 million
respectively. Adjusted profit before tax*
was £54.0million; £11.6 million higher
than2021. On an organic, constant
currency basis, adjusted operating
profit* and adjusted profit before tax*
were 11% and 3% up respectively
on2021.
Statutory profit before tax of
£24.7million (2021: £29.6 million)
further reflects adjusting items of
£29.3 million (2021: £12.8 million),
which primarily relate to the
amortisation ofacquired intangibles,
acquisition related charges, and
restructuring. These charges were
higher compared to 2021 primarily due
to the recent acquisitions, particularly
those of Savage and Audix, and the
Creative Solutions’ restructuring
announced atthe November trading
update. As a result, statutory operating
margin decreased from 8.5% to 7.0%.
Free cash flow* was £4.6 million lower
than 2021. Cash conversion* was 83%,
and across the last three years has
cumulatively been 108%.
Net debt* at 31 December 2022
was£48.3 million higher than at
31 December 2021 (£145.2 million)
and£0.6 million lower than at
30 June 2022 (£194.1 million).
We have an exceptionally experienced
leadership team at Videndum and
Iam really proud of what the business
achieved last year. I would like to
thank all of our employees for their
commitment and contribution to
these record results.
Market and strategy update
Videndum is uniquely positioned right at
the heart of the content creation market,
with market-leading, premium brands
in defensible niches; approximately
90% of our revenue comes from
professional content creators.
We continue to execute well on our
long-term strategy to deliver organic
growth, improve margins and 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 is a
critical aspect of our global strategy.
Details of our ESG and TCFD progress
are set out later in this report.
1. Organic growth
Organic growth is being driven by
technology advancement and by the
significant changes in the way people
now capture, consume and share
content. We estimate that 75% of
theGroup’s business is exposed to the
four main structural market growth
drivers on pages 10 to 11, which have
all been experiencing double-digit
growth. We continue to develop
innovative newtechnology to improve
our customers’ productivity by
developing products which reduce set
up time andlower operating costs.
This is becoming increasingly
important to our customers and drives
demand for newand replacement
products. Our vitality index is strong
and last year, again, about half of
ourrevenue came from new products
launched in the last three years.
2. Margin improvement
We expect continued margin
improvement as volumes grow and
wedeliver operating leverage. We also
intend to take a number of self-help
actions to further streamline our cost
base and deliver cross-Divisional
synergies to ensure that the business
is well set up for continued long-term
growth. Our actions will include:
– Operational excellence, e.g. targeting
3% year-on-year productivity gains
by driving lean manufacturing and
continuous improvement initiatives
across the Group.
– Targeted pricing improvements to
reflect product quality and brand
strength; price increases were
implemented in 2022 which will
ensure that we will continue to stay
ahead of inflationary pressures.
Wewill continue to monitor inflation.
– Increasing mix of higher margin,
higher technology products,
e.g. 4K/HDR technology replacement
cycle in Creative Solutions and new
advanced automated solutions with
our prompting and robotics products.
– Driving margin improvement in
Creative Solutions; 2022 saw the
Division’s operating profit margin
improve 240 bps year-on-year, and
this is expected to improve further
following the recently announced
reorganisation of the Division.
– Growing online sales, e.g. in FY 2022
c.50% of Media Solutions’ revenue
(excluding from B2B customers)
wasfrom online sales, of which
5%was direct e-commerce
compared to 4% in FY 2021.
– Higher margin acquisitions and
capturing synergies, e.g. in
MediaSolutions we have further
strengthened our go-to-market
effectiveness in the US and
leveraged greater organisational
efficiencies in line with the
integration plans for Audix
andSavage, and also Rycote.
– Optimising the use of our sites and
rationalisation of our site portfolio,
e.g. we will look to relocate
employees into alternative
orsmaller properties. In 2022,
weclosed our Chatsworth, US site
and employees were relocated to
anearby existing facility.
3. M&A activity
We have a strong M&A track record
and a clear capital allocation strategy.
We have increased our addressable
markets by expanding our product
portfolio, customer base and
technology capabilities, through
carefully selected acquisitions. The
Group has been focused on the fastest
growing market segments of the
content creation market, mainly in
thetwo key strategic growth areas
ofvideo transmission/streaming in
Creative Solutions and content creation
in Media Solutions, including allocating
more attention to audio capture,
where we see a sizeable opportunity.
Videndum plc Annual Report and Accounts 2022 19
* In addition to statutory reporting, Videndum reports alternative performance measures (“APMs”) which are not
definedor specified under the requirements of International Financial Reporting Standards (“IFRS”). The Group
uses these APMs to aid the comparability of information between reporting periods and Divisions, by adjusting for
certain items which impact upon IFRS measures, to aid the user in understanding the activity taking place across
the Group’s businesses. APMs are used by the Directors and Management for performance analysis, planning,
reporting and incentive purposes. A summary of APMs used and their closest equivalent statutory measures is
given in the Glossary on pages 224 to 228.
Outlook
The Group is uniquely positioned right
at the heart of the growing content
creation market with attractive
market drivers. In H1 2023, against a
strong comparator period in H1 2022,
we expect that some macroeconomic
headwinds will continue to affect our
consumer segment (c.10% of Group
revenue) and business confidence
more generally, with additional
retaildestocking and some purchase
deferral by independent content
creators. However, we are seeing signs
of improvement, particularly in the
US. We continue to develop innovative
new technology to improve our
customers’ productivity by developing
products which reduce set up time
andlower operating costs. This is
becoming increasingly important
toour customers and drives shorter
product replacement cycles. We are
also executing on a number of self-
help actions to further streamline our
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 tax* compared to FY
2022, with higher operating profit
offset by increased interest charges,
albeit with a higher than usual H2
weighting due to the macroeconomic
environment mentioned above.
We remain committed to our
previously stated organic strategic
ambition of c.£600 million revenue
and greater than £100 million adjusted
operating profit, however, the timing
islikely to be delayed due to the
current macroeconomic environment.
The content creation market is a
greatplace to be and Videndum is
wellpositioned to deliver growth
andvalue for shareholders.
Stephen Bird
Group Chief Executive
27 February 2023
Operational Review20
Revenue
2022
2021
2020
£217.8m
£194.7m
£156.7m
Adjusted operating proﬁt*
2022
2021
2020
£33.1m
£26.6m
£9.7m
Statutory operating proﬁt
2022
2021
2020
£23.4m
£23.8m
£5.8m
Media Solutions
Adjusted operating profit
*
£33.1m
Up 24.4%
Revenue
£217.8m
Up 11.9%
Videndum plc Annual Report and Accounts 2022 21
Marco Pezzana
Group Chief Operating Officer
and Divisional Chief Executive,
Videndum Media Solutions
Our pioneering R&D and
focused acquisitions have
broadened our portfolio
to enable our customers
to stand out in an industry
where more content is being
produced and shared across
more digital platforms
than ever before.
Operational Review22
Photographic market: 60%
Cine/scripted TV/ICC market: 40%
Media Solutions continued
The Media Solutions Division
designs, manufactures and
distributes premium branded
equipment for photographic
and video cameras and
smartphones, and provides
dedicated solutions to professional
and amateur photographers
and videographers, independent
content creators, vloggers/
influencers, gamers, enterprises
and professional musicians.
This includes camera supports and
heads, smartphone and vlogging
accessories, lighting supports and
controls, LED lights, motion control,
audio capture and noise reduction
equipment, carrying solutions and
backgrounds, marketed under the
most recognised accessories brands
inthe industry.
Media Solutions represents c.50%
ofGroup revenue.
Addressable market
*
The TAM for Media Solutions is
c.£1.5 billion per annum and we
estimate the market CAGR (2022–25)
will be c.4%.
Strategy
Our strategy is focused on developing
innovative new products to improve
our customers’ productivity in order
togrow our core professional business,
mainly driven by e-commerce and the
demand for original content creation,
as well as growth in new areas of
vlogging accessories and audio capture.
Market position
Videndum is the market leader in
mostof its product categories. We
sellour products globally via multiple
distribution channels and increasingly
online via our own direct e-commerce
capability and third-party platforms.
Our brands
Market position* shown in brackets
Supports and Stabilisers (#1)
Avenger
JOBY
Gitzo
Manfrotto
National Geographic**
Carrying solutions (#1)
Gitzo
Lowepro
Manfrotto
National Geographic**
Lighting and controls (#2)
JOBY
Manfrotto
Smartphonography (#1)
JOBY
Audio capture
Audix (US leader***)
JOBY (new entrant)
Rycote (#1***)
Backgrounds (#1)
Colorama
Savage
Superior
* Management estimates by sales value in the market
segments in which these products are sold.
** Manufactured under licence.
*** In our niche.
Target audience
Videndum plc Annual Report and Accounts 2022 23
Manfrotto Studio
TetherGear collection
The growing demand for digital visual content
meansthat imagemakers need to increase their
productivity by improving their content creation
workflow. Manfrotto’s latest collection of five
essential Tethered Shooting Accessories, allows
professional content creators to set up a fully
tethered workstation or video village to enable them
to produce more content, more quickly and instantly
review it with clients. Tethered photoshoot has
become a must-have in every professional studio
production, from fashion to still life.
Demand for original content drives
growth in lighting stands
Driven by the high demand for original content
forstreaming and video-on-demand platforms,
there are a growing number of smaller, more mobile
production crews who require compact lighting
stands to maximise space in transit and on set. Cine/
scripted TV lighting fixtures are substantial in weight
and size, and the new Avenger Buccaneer is a unique,
ground-breaking lighting stand, as it is the most
compact on the market with the lowest loading
height to enable smaller teams to mount heavy duty
lighting fixtures safely and securely.
Launched in September 2022, the Avenger
Buccaneer has been incredibly well received across
the globe.
Social media growth fuels JOBY software innovation
With grips, supports, lights, on-camera microphones, motion control and
now workflow management apps, JOBY provides the only complete eco
system of accessories for the monetising creators on TikTok and YouTube.
The JOBY One App is a unique digital hub which enables content creators
to easily control JOBY products directly from their smartphone, via an
intuitive user interface. It is also connected to the JOBY store, allowing
users to easily access the entire JOBY product catalogue. The JOBY One
App controls the sound parameters of the Wavo PRO on-camera
microphone, the setup of Swing and Spin motion control, and also
manages the tones and output power of the Beamo lights, allowing
creators full control at one touch.
JOBY is also joining forces with Lightstream to market JOBY’s first
cloud-based service, responding to creators’ needs for a reliable solution
tocreate professional live streams. JOBY Studio is a cloud-based
streaming platform which enables creators to multi-stream their content
simultaneously across different digital platforms, expanding their reach
and increasing monetising possibilities.
Case studies
Operational Review24
Media Solutions continued
Audio capture represents one of the
most significant growth opportunities
for Videndum
Audio capture is an essential part of video creation as it
enhances the quality of content. Our acquisition of Audix
in January 2022 accelerated our audio strategy, bringing
specialist R&D and manufacturing capabilities to the
Group to enable our three audio brands to release a
range of highly targeted, innovative microphones.
JOBY
Our JOBY brand addresses independent content
creators with on-camera and mobile microphones.
During 2022, JOBYlaunched six new on-camera
microphones for vloggers and streamers, including the
flagship Wavo PRO, incorporating technology far ahead
of the competition. Launched via a digital-first brand
activation campaign, featuring YouTuber Casey Neistat,
JOBY has been progressively growing revenue by
expanding its audio leadership, gaining share of voice
and increasing its creator community.
Rycote
Our Rycote brand focuses on the broadcast and
production market. 2022 saw the launch of a complete
range ofinnovative new pencil microphones, available as
individual or matched stereo pairs, and perfect for use
inprofessional broadcasting, location sound recording
for cinema and TV, field recording and sound design.
Audix
Audix is our premium brand, serving professional studio
and live applications. Live video streaming and podcasting
are growing, especially in corporate and gaming
applications, and content creators are looking for new
ways to differentiate themselves. Audix recently
launched the first ever microphone dedicated to live
streaming, voice-over artists and professional
podcasters which delivers broadcast-quality sound
without the need for additional amplification.
Innovation and design excellence remain
atthe core of our Audix operations. Our
vertically integrated US facility incorporates
world-class engineering capabilities,
precision machining and talented teams to
provide the highest quality audio products
and to push the boundaries of best-in-class
consumer experience.
Chris Pagella
VP Operations – Audix, Videndum Media Solutions, US
Case studies
I have to say the JOBY microphone is the
only one I’ve used for my last 20 videos. It’s
stellar; it’s a perfect YouTuber’s microphone.
Casey Neistat
American YouTuber
Videndum plc Annual Report and Accounts 2022 25
Casey Neistat American YouTuber
Operational Review26
Revenue
2022
2021
2020
£137.8m
£121.8m
£80.1m
Adjusted operating proﬁt
*
2022
2021
2020
£31.4m
£28.0m
£7.6m
Statutory operating proﬁt
2022
2021
2020
£30.1m
£27.1m
£6.7m
Production Solutions
Revenue
£137.8m
Up 13.1%
Adjusted operating profit
*
£31.4m
Up 12.1%
Videndum plc Annual Report and Accounts 2022 27
Nicola Dal Toso
Divisional Chief Executive,
Videndum Production Solutions
Our innovative developments
in automated production
technology, LED lighting
and Image-Based Lighting
for Virtual Production mean
we are uniquely placed to
provide the next generation
of products and services
demanded by broadcasters
and cinematographers alike.
Operational Review28
Production Solutions continued
The Production Solutions Division
designs, manufactures and
distributes premium branded
and technically advanced products
and solutions for broadcasters,
film and video production
companies, independent content
creators and enterprises.
Products include video heads, tripods,
LED lighting, batteries, prompters and
robotic camera systems. It also supplies
premium services including equipment
rental and technical solutions.
Production Solutions represents
c.30% of Group revenue.
Addressable market
*
The TAM for Production Solutions is
c.£0.4 billion per annum and we
estimate that the market CAGR
(2022 –25) will be c.3%.
Strategy
Our strategy is focused on growth
in our core business of professional
equipment for original content
creation in cine/scripted TV, products
for on-location news and sporting
events, as well as innovative new
technology like robotic camera
systems and voice-activated
prompting to enable automation
and cost efficiencies in TV studios.
Market position
Videndum is the market leader in
most of its product categories and
is well positioned due to our broad
geographical reach and premium
products. We have a global sales team
that offers a full range of products
and services to our customers all
over the world, either directly or via
distributors, both online and in stores.
Our brands
Market position* shown in brackets
Supports (#1)
OConnor
Sachtler
Vinten
Prompters (#1)
Autocue
Autoscript
Lighting (#2)
Litepanels
Quasar Science
Mobile power (#1)
Anton/Bauer
Robotic camera systems (#2)
Camera Corps
Vinten
Distribution, rental
and services (#1)
Camera Corps
The Camera Store
Target audience
Broadcast market: 50%
Cine/scripted TV/ICC market: 50%
* Management estimates by sales value in the market
segments in which these products are sold.
Videndum plc Annual Report and Accounts 2022 29
Pioneering studio automation with
robotics and prompting
Investment in advanced automated solutions is key
to increasing TV studio efficiency without affecting
broadcast production standards. The innovative
technology in our market-leading Vinten and
Autoscript robotics and prompting solutions is many
years ahead of our competitors. Automated and
IP-networked solutions enable efficient studio
production with fewer technical operators, delivering
clear and long-lasting operational overhead savings.
Voice prompts efficiency project at Rundfunk
Berlin-Brandenburg (“RBB”)
RBB is the first German broadcaster to incorporate
advanced voice-controlled prompting into its daily
programming. It installed Autoscript’s revolutionary
“Voice” at its state-of-the-art Crossmedia News
Centre where automation reduces the number of
control staff required to broadcast breaking news.
Presenters can control their own prompter script as
“Voice” automatically advances the words as they
are spoken. Real-time speech recognition, with
proprietary algorithms and advanced pattern
matching, ensures perfect script synchronisation
with the presenter.
Studio robotics reduce operational costs for
Nine Network
Australia’s “The Nine Network” invested in Vinten’s
state-of-the-art robotic camera support systems to
reduce operational costs at its new Sydney HQ. The
fully digital facility moved from manual studio floor
operations to automated control via Internet Protocol
(“IP”), integrating Vinten Studio Robotics and
Autoscript IP Prompting solutions into a proprietary
automation system.
Case studies
Technology advancement driving
growth in LED lighting
Lighting is a key strategic growth opportunity for the
Group. With virtual production increasing, there is a
strong demand to enhance virtual environments with
realistic lighting. Quasar Science leads the industry
with unique “Image-Based Lighting” which augments
LED video walls to enhance extended reality sets.
This, paired with Litepanels’ high output cinematic
lighting, places Videndum at the forefront of this
fast-growing market.
Lighting a vast forbidden forest for Disney’s
“Hocus Pocus 2” required lightweight versatility and
powerful output. Quasar Science LED tubes created
the atmospheric magic hour scenes, producing
vibrant saturated colours and intense white light.
Advances in colour control technology
from Quasar Science and Litepanels
represent new grading levels. Now,
effects which were once only possible in
post-production are possible in real life.
Elliot Davis
Cinematographer, Hocus Pocus 2
Independent production “The Lion and the Firebird”
used virtual reality technology to produce a budget
prehistoric adventure. Using Litepanels and Quasar
Science products, the action-packed film cost a
fraction of traditional productions without
compromising on quality.
For independent film-makers, virtual
production is huge. Now we can be
anywhere in time and space, limited
onlyby imagination. This transformative
technology is the future of film-making.
Daniel Byers
Director, The Lion and the Firebird
Operational Review30
Revenue
2022
2021
2020
£95.6m
£77.8m
£53.7m
Adjusted operating proﬁt
*
2022
2021
2020
£12.5m
£8.3m
£3.3m
Statutory operating proﬁt
2022
2021
2020
-£3.3m
-£0.6m
-£4.8m
Creative Solutions
Adjusted operating profit
*
£12.5m
Up 50.6%
Revenue
£95.6m
Up 22.9%
Videndum plc Annual Report and Accounts 2022 31
Marco Vidali
Divisional Chief Executive,
Videndum Creative Solutions
The need for HDR/4K low
latency video transmission and
monitoring is growing rapidly
inmultiple markets for multiple
applications. Our proprietary
zero delay technologies are
uniquely positioned to fulfil
those demands.
Creative Solutions mainly focuses on the
fast- growing, global content creation market
as daily screen time and video consumption
expand across numerous platforms. We make
the tools to help tell the stories, share the news,
engage an audience and spread the word.
Operational Review32
Target audience
The Creative Solutions Division
develops, manufactures and
distributes premium branded
products and solutions for film
and video production companies,
independent content creators,
gamers, enterprises (e.g. medical
and industrial) and broadcasters.
Products include wired and wireless
video transmission and lens control
systems, live streaming solutions,
monitors, camera accessories and
software applications.
Creative Solutions represents
c.20%of Group revenue.
Addressable market
*
The TAM for Creative Solutions
is larger than £1.0 billion per annum
and we estimate that the market
CAGR (2022–25) will be c.10–15%.
Strategy
Our strategy is focused on continuing
to deliver the 4K/HDR replacement
cycle as well as developing innovative
new technology to improve our
customers’ productivity in the
growingareas of remote monitoring,
collaboration and streaming in the cine/
scripted TV and enterprise markets.
Market position
Videndum is the market leader in most
of its product categories. We have this
strong position due to our premium
brands, market-leading technology
and dedicated team of innovative
product specialists with extensive
experience in shooting both professional
and amateur video content. We sell
our products globally via multiple
distribution channels and increasingly
online via our own direct e-commerce
capability and third-party platforms.
Our brands
Market position* shown in brackets
Video transmission systems (#1)
Teradek
Monitors (#1
**
)
SmallHD
Lens control systems (#3)
Teradek
Live streaming (#1
**
)
Teradek
Lightstream
IP video (#3)
Teradek
Camera accessories (#3)
Wooden Camera
Creative Solutions continued
* Management estimates by sales value in the
market segments in which these products are sold.
** In our niche.
Cine/scripted TV/ICC market: 80%
Medical/Enterprise market: 20%
Videndum plc Annual Report and Accounts 2022 33
Case studies
SmallHD Production Monitors
SmallHD has become the industry standard for ultra-bright on-camera
monitors, and we solidified our entry into a new segment of the monitor
market in 2022 with our line of 4K production monitors. Not only have we
challenged the market leaders in price, but in technology, capability and, most
importantly, image quality. We have spent the last three years maturing
our 4K large-format platform and we now ship seven different models.
utilised in thousands of installations within operating
rooms, replacing current wired solutions. This increases
flexibility for healthcare professionals, in addition to
attractive economies of scale and increased operating
room availability.
How NATO streamed to 88 countries
in three days with Teradek
NATO has historically transmitted video using the
private fibre and satellite network from the European
Broadcasting Union, but wanted to find better synergy
between their broadcast and internet solutions to
reach a worldwide audience, while improving cost
efficiency. They are working with Teradek to be ready
for a future where broadcast-quality video might no
longer be transmitted via expensive fibre and satellites,
but instead public TV stations might send the same
quality video through more cost-effective consumer
internet connections.
Adaptive Reliable Transport (“ART”),
the video-aware, ultra-low latency
streaming protocol
ART, a protocol jointly developed by our Amimon and
Teradek engineers, delivers secure, ultra-low latency,
broadcast-quality video and audio for mission-critical
video transport over public networks. It utilises joint
source channel coding to evaluate video content and
network characteristics simultaneously, optimising
forboth in one step. The result is a highly resilient,
adaptive video stream that ensures the quality and
integrity of content over the most challenging network
conditions, overcoming video pixelation, stuttering,
freezing, sync loss, delays and total dropouts. ART
provides more natural, lifelike bi-directional streaming
interaction between presenters and guests, wherever
they are located across the globe.
Zero latency wireless video solutions
for the medical market
4K real-time video is widely used by surgeons and
medical professionals to provide optimal visualisation
during diagnosis and surgical procedures. The need to
wirelessly connect video sources to display monitors,
recording devices and wall control panels is becoming
essential in order to improve clinical workflow, efficiency
and patient outcomes. Amimon’s unique, award-winning
wireless zero latency video technology means we can
now deliver high fidelity, ultra-low latency video over
asecure and reliable link. Our medical products are
The SmallHD OLED 22 monitor is the premiere option for
in-camera accuracy – I trust the colours on this monitor
more than I do my laptop. I’ve been able to operate with
confidence and never second-guess what I am seeing on
the screen. It’s a non-negotiable staple in my kit.
Gina Manning
Director and Photographer
Without Teradek we could not have
pulled off what we did over the past
half year. It has become clear that
with Teradek, we’ve invested well
at a relatively minimal cost compared
to transmission via fibre or satellite.
Bart Vandendorpe
NATO
Strategic Report34
Operational and ﬁnancial review
Financial performance
Adjusted* Statutory
2022 2021 % change 2022 2021
Revenue £451.2m £394.3m +14% £451.2m £394.3m
Operating proﬁt/(loss) £60.0m £46.2m +30% £31.5m £33.5m
Proﬁt before tax £54.0m £42.4m +27% £24.7m £29.6m
Earnings per share 90.1p 69.9p +29% 71.4p 56.4p
Cash ﬂow
£m 2022 2021 Variance
Statutory operating proﬁt . . (.)
Add back adjusting items . . .
Adjusted operating proﬁt
*
. . .
Depreciation
(1)
. . .
Adjusted working capital (inc)/dec
*
(.) . (.)
Adjusted provisions (inc)/dec
*
(.) (.) –
Capital expenditure
(2)
(.) (.) .
Other
(3)
. . .
Adjusted operating cash ﬂow
*
. . .
Cash conversion
*
% % ()%pts
Interest and tax paid (.) (.) (.)
Earnout and retention bonuses (.) (.) .
Restructuring and integration costs (.) (.) (.)
Transaction costs (.) (.) .
Free cash ﬂow
*
. . (.)
(1) Includes depreciation, amortisation of soware and capitalised development costs.
(2) Purchase of Property, Plant & Equipment (“PP&E”) and capitalisation of soware and development costs.
(3) Includes share-based payments charge (excluding retention) and other reconciling items to get to the
adjusted operating cash ﬂow*.
Net cash from operating activities of £48.7 million (2021: £54.7 million) comprises £28.5 million free cash
ﬂow (2021: £33.1 million) plus £20.2 million capital expenditure (2021: £21.7 million) less nil proceeds from
sale of PP&E and soware (2021: £0.1 million).
Image: Daniel Kordan
Videndum plc Annual Report and Accounts 2022 35
The Group achieved record revenue and adjusted
proﬁt before tax
*
Andrea Rigamonti
Group Chief Financial Ocer
Income and expense
The Group achieved record revenue
and adjusted proﬁt before tax*
despite some signiﬁcant headwinds,
including weakening consumer
conﬁdence as the year progressed.
This most signiﬁcantly impacted
revenue from our non-professional
customers, which represents c.10%
oftotal Group revenue. Business
conﬁdence was also low in H2 and
asaresult, we saw retailer destocking
across all Divisions but predominantly
inMedia Solutions.
These external factors meant that
fullyear organic, constant currency
growth was 1%. The acquisitions
ofSavage and Audix have been
successfully integrated and
contributed to full year revenue
growth of 8% on a constant currency
basis, and 14% on a reported basis.
Adjusted gross margin of 43.9% was
inline with 2021 (43.9%). As expected,
Litepanels’ royalties were lower than
in 2021; excluding royalties from
bothperiods, the gross margin*
hasincreased from 43.3% to 43.7%.
Theeect of price increases more
than oset the high inﬂation on
rawmaterials, freight, duty, utilities
andlabour.
Adjusted operating expenses* of
£138.1 million were £11.1 million higher
than 2021. On an organic, constant
currency basis, they declined by
£1.6million due to careful
management of the cost base across
H2 to mitigate against the macro-
economic headwinds.
The drop through from higher revenue
combined with tight control of the cost
base delivered a 160 bps increase in the
adjusted operating margin* to 13.3%.
There was a 24% drop through of
revenue to proﬁt on a reported basis,
which was 40% at constant currency.
Adjusted proﬁt before tax* included
a£3.6 million favourable foreign
exchange eect aer hedging
compared to 2021, due to a stronger
US Dollar partly oset by a slightly
weaker Euro than in 2021. The impact
on 2023 adjusted proﬁt before tax*
from a one cent stronger/weaker US
Dollar/Euro is expected to be an
increase/decrease of approximately
£0.3 million and £0.3 million,
respectively.
Adjusted net ﬁnance expense* of £6.0
million was £2.2 million higher than in
2021. This was driven by higher debt,
following the recent acquisitions, and
rising interest rates; partly oset by
net gains on the translation of
intercompany loans and cash
balances. In 2023, an average of c.65%
of our borrowings will be ﬁxed through
swaps at an average rate of c.4%
(including margin), partly mitigating
the risk of further interest rate
increases. Our ﬂoating debt currently
has an average interest rate of c.6%
(including margin). Net ﬁnance
expense also includes interest on the
lease liabilities and the deﬁned beneﬁt
pension scheme, amortisation of loan
fees, and net currency translation
gains or losses.
Adjusted proﬁt before tax* was
£54.0 million; £11.6 million higher than
2021. On an organic, constant currency
basis, adjusted operating proﬁt* and
adjusted proﬁt before tax* were 11%
and 3% up respectively on 2021.
Statutory proﬁt before tax of £24.7
million (2021: £29.6 million) further
reﬂects adjusting items of £29.3
million (2021: £12.8 million), which
primarily relate to the amortisation
ofacquired intangibles, acquisition
related charges, and restructuring.
These charges were higher compared
to 2021 primarily due to the recent
acquisitions, particularly those of
Savage and Audix, and the Creative
Solutions’ restructuring announced
atthe November 2022 trading update.
As a result, statutory operating
margin decreased from 8.5% to 7.0%.
The Group’s eective tax rate (“ETR”)
on adjusted proﬁt before tax* was
23.1% (2021: 24.3%). Statutory ETR
was a 33.2% credit (2021: 12.5% cost)
due to the recognition of historical
UStax losses of £14.3 million.
Adjusted basic earnings per share*
was 90.1 pence. Statutory basic
earnings per share was 71.4 pence.
Cash ﬂow and net debt
Cash generated from operating
activities was £65.3 million (2021:
£65.7 million) and net cash from
operating activities was £48.7 million
(2021: £54.7 million).
Free cash ﬂow* was £4.6 million lower
than 2021. Cash conversion* was 83%,
and across the last three years has
cumulatively been 108%.
Adjusted working capital* increased
by£19.4 million in 2022. Inventory
increased by £12.2 million in H1, which
was expected following cost inﬂation,
capacity constraints and component
shortages but fell by £2.0 million
across H2 as we managed our cash
position carefully. Receivables
increased by £5.0 million in part due
to price rises, and payables decreased
by £4.2 million mainly due to
year-on-year movements in accruals.
Strategic Report36
Capital expenditure included:
– £7.1 million of property, plant and
equipment compared with £10.8
million in 2021, which included the
insourcing of JOBY to Feltre;
– £12.1 million capitalisation of R&D
(2021: £10.1 million) primarily at
Creative Solutions to develop our next
generation products; and £1.0 million
capitalisation of soware (2021: £0.8
million). Gross R&D was higher than
2021, as expected, and grew in line
with revenue (6.3% of revenue in 2022
compared to 6.4% in 2021).
£m 2022 2021 Variance
Gross R&D . . .
Capitalised (.) (.) (.)
Amortisation . . .
P&L impact . . .
‘Other’ primarily relates to share-
based payments.
Interest and tax paid increased by
£5.6 million compared to 2021 mainly
due to higher interest costs from fees
for the Audix term loan and accordion
agreement, as well as the increased
P&L charge.
Earnout and retention bonuses
relateto Lightstream and Quasar.
Restructuring cash outﬂow reﬂects
costs associated with rebranding from
The Vitec Group plc to Videndum plc
and the exit costs that were paid in
2022, the remainder to be paid in 2023.
December 2021 closing net debt*
(£m) (.)
Free cash ﬂow* .
Upfront loan fees,
net of amortisation (.)
Dividends paid (.)
Employee incentive shares (.)
Acquisitions (.)
Net lease additions (.)
FX (.)
December 2022 closing net debt*
(£m) (.)
Net debt* at 31 December 2022
was£48.3 million higher than at
31 December 2021 (£145.2 million)
and£0.6 million lower than at 30 June
2022 (£194.1 million).
The ratio of net debt to EBITDA was 2.1x
at 31 December 2022 (2021: 2.0x), on
the basis used for our loan covenants
(1)
.
Given the expected H2 weighting in
2023, the ratio will increase at
30 June 2023 but is then expected
tomaterially decline thereaer.
Cash outﬂow on acquisitions mostly
relates to the purchase of Audix on
11 January 2022, net of the cash
acquired.
Net lease additions mainly consist of
anew lease at Savage and also a lease
as part of the acquisition of Audix.
There was a £15.3 million adverse
impact from FX; primarily from the
translation of our US Dollar debt,
following the strengthening of the
USDollar against Sterling.
Liquidity at 31 December 2022 totalled
£102.1 million; comprising £86.3 million
unutilised Revolving Credit Facility
(“RCF”) and £15.8 million of cash.
The£35 million RCF accordion was
executed on 30 December 2022 taking
the total RCF facility from £165million
to £200 million.
ROCE* of 18.8%
(2)
was higher than
theprior year (2021: 18.0%), which
reﬂects the higher adjusted operating
proﬁt*, partly oset by increased
capital employed because of the
recent acquisitions.
Adjusting items
Adjusting items in proﬁt before tax
were £29.3 million versus £12.8 million
in 2021.
£m 2022 2021
Amortisation of acquired
intangible assets . .
Acquisition related
charges
(3)
. .
Integration and
restructuring costs . .
Finance expense –
amortisation of loan
feeson borrowings
foracquisitions . .
Adjusting items . .
(1) Net debt is stated before arrangement fees; EBITDA is
based on adjusted EBITDA* for the applicable 12-month
period (see Glossary), before non-cash share-based
payment charges; and aer interest on employee
beneﬁts and FX movements, and the amortisation
ofarrangement fees; it also includes the 12-month pro
forma eect of acquisitions. Our loan covenant is 3.25x.
(2) Return on capital employed (“ROCE”) is calculated
asadjusted operating proﬁt* for the last 12 months
divided by the average total assets (excluding
non-trading assets of deﬁned beneﬁt pension and
deferred tax), current liabilities (excluding current
interest-bearing loans and borrowings), and
non-current lease liabilities. 2021 has been restated
toexclude the deferred tax asset, which was included
inthe 2021 calculation.
(3) Includes earnout charges, retention bonuses, transaction
costs relating to the acquisition of businesses, and the
eect of fair valuation of acquired inventory.
Operational and ﬁnancial review continued
Videndum plc Annual Report and Accounts 2022 37
* In addition to statutory reporting, Videndum plc
reports alternative performance measures (“APMs”)
which are not deﬁned or speciﬁed under the
requirements of International Financial Reporting
Standards (“IFRS”). The Group uses these APMs to aid
the comparability of information between reporting
periods and Divisions, by adjusting for certain items
which impact upon IFRS measures, to aid the user in
understanding the activity taking place across the
Group’s businesses. APMs are used by the Directors
and Management for performance analysis, planning,
reporting and incentive purposes. A summary of
APMs used and their closest equivalent statutory
measures is given in the Glossary on pages 224 to 228.
Viability Statement
In accordance with the 2018 UK
Corporate Governance Code, the
Directors have assessed the viability
of the Group over a three-year period,
taking account of the Group’s current
ﬁnancial and trading position as
summarised in this Annual Report, the
principal risks and uncertainties set
out on pages 44 to 49, and the latest
management forecasts.
The Directors believe that a three-
year period is an appropriate period
over which a reasonable expectation
of the Group’s longer-term viability
can be evaluated and is aligned with
the Group’s business and strategic
planning time horizon. It reﬂects the
nature of the Group’s key markets,
itsbusinesses and products, and
itslimited order visibility. While the
Directors have no reason to believe
that the Group will not be viable over
a longer period, they believe that the
three-year period presents readers of
the Annual Report with a reasonable
degree of conﬁdence.
The Group’s strategic and ﬁnancial
planning process reﬂects the
Directors’ best estimate of the future
prospects of the Group, but they have
also considered a range of scenarios
through to the end of 2025. Modelling
is impacted by a number of factors
including assumptions around the
overall global economic environment,
the growth of our end markets and
the creation of original content.
The Directors have reviewed the
forecast scenarios set out below:
– The Group’s latest forecast,
whichprojects a progressive
tradingperformance in 2023
andbeyond, despite the
uncertainmacroeconomic
outlookfacing theGroup.
– Two severe downside scenarios
which primarily vary the length
ofaglobal recession with the key
changes to estimates being a
severereduction in revenue and
cashgeneration of the Group,
reﬂecting an extreme scenario
similar to the 2008 global
ﬁnancialcrisis.
The severe downside scenarios are
considered possible but not probable
and factor in mitigating cost savings
activities from management actions
which would be taken to partly oset
a decline in trading performance.
These are proportionate and do not
take into account all discretionary
actions which could be taken; nor do
they consider renegotiation of the
covenants of the RCF, which for
example, occurred during 2020.
TheDirectors have considered the
potential risk of lower revenue and,
while monitoring developments, they
currently consider there to be minimal
risk of breaching covenants. Under the
most severe scenario modelled, the
lowest point of cash headroom in the
next 12 months would be at February
2024, when cash headroom under the
RCF would be £28 million.
The Group has also modelled a reverse
stress test scenario. This models the
decline in sales that the Group would
be able to absorb before breaching
any ﬁnancial covenants. Such a
scenario, and the sequence of events
that could lead to it, is considered to
be remote. Revenue in 2022 increased
by 14% versus 2021. Revenue would
need to decline by 16% in 2023 versus
our latest forecast to result in a
breach of the covenants.
The Directors have also considered
theGroup’s capacity to remain viable
aer consideration of future cash
ﬂows, expected debt service
requirements, undrawn facilities
andaccess to capital markets.
The Group’s main committed
borrowing facilities at 31 December
2022 was the £200 million RCF, where
the Group had utilised £113.7 million
(57%); under the terms of the RCF the
loans have a maturity of £165 million
at 14 February 2026, with the residual
£35 million expiring at the original
date of 14 February 2025.
The Group’s committed borrowing
facilities also include a three-year
$53.0million (£43.8 million) amortising
Term Loan signed on 15 November
2021 to ﬁnance the acquisition of
Savage, and a three-year $47.0 million
(£38.8 million) amortising Term Loan
signed on 7 January 2022 to ﬁnance
the acquisition of Audix. The balance
outstanding on these Term Loans at
31 December 2022 was$75.0 million
(£62.0 million).
Based on this assessment, the
Directors conﬁrm that they have
areasonable expectation that the
Group will be able to continue in
operation and meet its liabilities
asthey fall due over the period from
the date of this Annual Report to
31 December 2025, subject to the
Group retaining the ability to acquire
funding in order to reﬁnance its
committed facilities when they fall
due, which is expected to be the case.
Dividend
The Board has recommended a
ﬁnaldividend of 25.0 pence per share
amounting to £11.6 million (2021: 24.0
pence per share amounting to £11.1
million). The ﬁnal dividend, subject
toshareholder approval at the2023
Annual General Meeting, willbe paid
on Friday, 19 May 2023 toshareholders
on the register at theclose of business
on Friday, 21 April 2023. This will bring
the total dividend for the year to 40.0
pence per share (2021: 35.0 pence per
share). A dividend reinvestment
alternative is available with details
available from our registrars, Equiniti
Limited. The Board’s objective is for a
progressive and sustainable dividend
and believes it is appropriate for the
Group to target a total dividend cover
of 2.0–2.5 times adjusted EPS.*
Andrea Rigamonti
Group Chief Financial Ocer
27 February 2023
Strategic Report38
Media Solutions
Macroeconomic market conditions
had a signiﬁcant impact on Media
Solutions and drove an organic,
constant currency revenue decline
of7%. The acquisitions of Savage
andAudix have been successfully
integrated and along with a tailwind
from a stronger Euro and US Dollar
resulted in reported revenue for
MediaSolutions increasing by 12%.
High inﬂation drove weakening
consumer conﬁdence, which started
towards the end of H1 and continued
throughout H2. The consumer
segment (c.20% of the Division)
wasmost signiﬁcantly impacted
withlower demand from hobbyists
and vlogger/inﬂuencers.
Business conﬁdence was subsequently
low in H2 and retailer destocking
impacted across the Division, including
in the independent content creator
segment (c.55% of the Division).
Our premium lighting supports are
best-in-class and have been in high
demand, and we saw signiﬁcant
growth in the high end professional
segment (c.25% of the Division).
Welaunched our Avenger Buccaneer
for the cine/scripted TV market
inSeptember, which is a unique,
ground breaking lighting stand.
Higher reported revenue drove a
24%increase in adjusted operating
proﬁt* with the operating margin*
increasing by 150 bps. Operating
proﬁt* declined by 3% on an organic,
constant currency basis.
Statutory operating proﬁt was
£23.4million (2021: £23.8 million),
reﬂecting £9.7 million of adjusting
items (2021: £2.8 million).
Revenue
£217. 8m
Up 11.9%
Revenue Statutory operating proﬁt
Adjusted operating proﬁt
*
£33.1m
Up 24.4%
Adjusted operating proﬁt
*
2022
2021
2020
£217.8m
£194.7m
£156.7m
2022
2021
2020
£23.4m
£23.8m
£5.8m
2022
2021
2020
£33.1m
£26.6m
£9.7m
Operational and ﬁnancial review continued
* In addition to statutory reporting, Videndum plc reports alternative performance measures (“APMs”) which are not deﬁned or speciﬁed under the requirements of International Financial
Reporting Standards (“IFRS”). The Group uses these APMs to aid the comparability of information between reporting periods and Divisions, by adjusting for certain items which impact
upon IFRS measures, to aid the user in understanding the activity taking place across the Group’s businesses. APMs are used by the Directors and Management for performance analysis,
planning, reporting and incentive purposes. A summary of APMs used and their closest equivalent statutory measures is given in the Glossary on pages 224 to 228.
Our brands
Supports and stabilisers
Avenger
JOBY
Gitzo
Manfrotto
National Geographic
Carrying solutions
Gitzo
Lowepro
Manfrotto
National Geographic
Lighting and controls
JOBY
Manfrotto
Smartphonography
JOBY
Audio capture
Audix
JOBY
Rycote
Backgrounds
Colorama
Savage
Superior
Videndum plc Annual Report and Accounts 2022 39
Revenue
£137.8m
Up 13.1%
Revenue Statutory operating proﬁt
Adjusted operating proﬁt
*
£31.4m
Up 12.1%
Adjusted operating proﬁt
*
2022
2021
2020
£137.8m
£121.8m
£80.1m
2022
2021
2020
£30.1m
£27.1m
£6.7m
2022
2021
2020
£31.4m
£28.0m
£7.6m
Production Solutions
Production Solutions had a stand-out
year as it was less aected by the
macroeconomic conditions with
alltheir products catering for
professionals. Organic, constant
currency revenue increasing by 6%,
and the stronger US Dollar resulted
inreported revenue for Production
Solutions increasing by 13%.
The broadcast segment returned to
pre-pandemic levels, signiﬁcantly
increasing studio spend year-on-year;
driving high growth in studio supports
and prompting. Our voice-activated
prompting, launched in 2021,
continued to drive growth in this
areaas well.
Outside of the studio, our market-
leading ﬂowtech tripods and aktiv
ﬂuid heads helped to drive material
growth in non-studio supports. The
Litepanels Gemini 2x1 Hard launched
in May and was very well received by
the market, with some signiﬁcant
ﬁrstyear revenue.
Camera Corps provided bespoke
cameras to the Winter Olympics in H1,
although H2 year-on-year comparisons
are unfavourable given the Summer
Olympics in H2 2021.
The higher revenue drove a 12%
increase in adjusted operating proﬁt*
and 10% on an organic, constant
currency basis. The operating margin*
decreased by 20 bps as royalties
received for the Litepanels brand were
lower than seen in 2021, with 100% of
the revenue decline dropping through
to proﬁt. Excluding the royalties,
theoperating margin* was 22.1%
(2021: 20.3%).
Statutory operating proﬁt was
£30.1million (2021: £27.1 million),
which included £1.3 million of
adjusting items (2021: £0.9 million).
* In addition to statutory reporting, Videndum plc reports alternative performance measures (“APMs”) which are not deﬁned or speciﬁed under the requirements of International Financial
Reporting Standards (“IFRS”). The Group uses these APMs to aid the comparability of information between reporting periods and Divisions, by adjusting for certain items which impact
upon IFRS measures, to aid the user in understanding the activity taking place across the Group’s businesses. APMs are used by the Directors and Management for performance analysis,
planning, reporting and incentive purposes. A summary of APMs used and their closest equivalent statutory measures is given in the Glossary on pages 224 to 228.
Our brands
Supports
OConnor
Sachtler
Vinten
Prompters
Autocue
Autoscript
Lighting
Litepanels
Quasar Science
Mobile power
Anton/Bauer
Robotic camera systems
Camera Corps
Vinten
Distribution, rental
and services
Camera Corps
The Camera Store
Strategic Report40
2022
2021
2020
£95.6m
£77.8m
£53.7m
2022
2021
2020
-£3.3m
-£0.6m
-£4.8m
2022
2021
2020
£12.5m
£8.3m
£3.3m
Creative Solutions
The continuation of the 4K/HDR
rollout drove Creative Solutions
revenue to increase by 10% on an
organic, constant currency basis,
andthe stronger US Dollar resulted
inreported revenue for Creative
Solutions increasing by 23%.
Our Teradek Bolt transmitters and
receivers are exclusively now 4K/HDR,
as are a third of the sales of SmallHD
monitors. Total 4K/HDR sales were
c.$47 million (c.$13 million of which
were monitors). Wooden Camera saw
continued signiﬁcant growth, and
overall the cine/scripted TV segment
grew materially.
Less remote working compared to
2021 and a repositioning of our brand
towards the higher margin, higher end
of the enterprise market saw revenue
decline year-on-year in this market,
asexpected. However, high demand
for our Amimon medical products did
result in continued signiﬁcant growth
in this market segment.
The higher revenue drove a 51%
increase in adjusted operating proﬁt*
with the operating margin* increasing
by 240 bps. Operating proﬁt*
increased by 41% on an organic,
constant currency basis.
In November, we announced a
reorganisation in Creative Solutions.
Following a period of signiﬁcant
investment in R&D in Creative
Solutions, the future focus is on
leveraging our unique technologies
and platforms to drive further growth
in strategic markets. Consequently,
the sales and marketing teams were
reorganised into specialist vertical
segments to maximise the Division’s
growth potential, and to focus on high
end, high margin, mission-critical
products incorporating patented
Amimon technology, exiting the low
margin, low end of the wireless
videostreaming market where our
productsdo not incorporate the
Amimon technology.
These actions are expected to reduce
the annual Divisional cost base by
c.$3.5 million. The total cash cost of
the reorganisation is expected to be
c.$2.5 million ($0.7 million in 2022),
with non-cash write-os in 2022 of
$4.5 million.
Statutory operating loss was
£3.3million (2021: £0.6 million loss),
which reﬂects £15.8 million of
adjusting items, including those
above(2021: £8.9 million).
Revenue
£95.6m
Up 22.9%
Adjusted operating proﬁt
*
£12.5m
Up 50.6%
Revenue Statutory operating proﬁt
Adjusted operating proﬁt
*
Operational and ﬁnancial review continued
* In addition to statutory reporting, Videndum plc reports alternative performance measures (“APMs”) which are not deﬁned or speciﬁed under the requirements of International Financial
Reporting Standards (“IFRS”). The Group uses these APMs to aid the comparability of information between reporting periods and Divisions, by adjusting for certain items which impact
upon IFRS measures, to aid the user in understanding the activity taking place across the Group’s businesses. APMs are used by the Directors and Management for performance analysis,
planning, reporting and incentive purposes. A summary of APMs used and their closest equivalent statutory measures is given in the Glossary on pages 224 to 228.
Our brands
Video transmission systems
Teradek
Monitors
SmallHD
Lens control systems
Teradek
Live streaming
Teradek
Lightstream
IP video
Teradek
Camera accessories
Wooden Camera
Videndum plc Annual Report and Accounts 2022 41
Strategic Report42
Operational and ﬁnancial review continued
Key Performance Indicators
Health and safety: accident record
Number of accidents resulting in greater than
three days’ absence.
Adjusted operating proﬁt margin*
Adjusted operating proﬁt* divided by revenue.
13.3%
Performance
2022
2021
2020
13.3%
11.7%
3.4%
Progress
Increase driven by higher volumes.
Link to strategy
2 3
Constant currency revenue
(decline)/growth
Change in revenue on operations at constant
exchange rates.
Adjusted proﬁt before tax*
Adjusted proﬁt before tax.*
£54.0m
Performance
2022
2021
2020
£54.0m
£42.4m
£5.5m
Progress
Increase driven by higher volumes, partly oset by higher
net ﬁnance expense.
Link to strategy
1 2 3
* A summary of APMs is given in the Glossary on pages 224 to 228.
ROCE for 2020 and 2021 has been restated to include the non-current lease liabilities and excludes deferred tax assets, which were not previously included/excluded respectively.
7.7%
Performance
2022
2021
2020
7.7%
43.5%
-22.9%
Progress
Increase driven by M&A activity, growth in lighting, studio
and broadcast supports and 4K-HDR; partly oset by
declining consumer conﬁdence and destocking.
Link to strategy
1 3
2
Performance
2022
2021
2020
2
0
0
Progress
Our target is zero accidents.
Link to strategy
n/a
Videndum plc Annual Report and Accounts 2022 43
Adjusted basic EPS*
Adjusted proﬁt aer tax* divided by weighted average
number of shares outstanding during the period.
Cash conversion*
Adjusted operating cash ﬂow* divided by
adjusted operating proﬁt.*
83%
Performance
2022
2021
2020
83%
108%
257%
Progress
Tight control of cash despite expected higher inventory due
to pricing and increased volumes.
Link to strategy
1 2
Return on Capital Employed*
Adjusted operating proﬁt* divided by the average total
assets (excluding non-trading assets of deﬁned beneﬁt
pension and deferred tax), current liabilities (excluding
current interest-bearing loans and borrowings), and
non-current lease liabilities.
Revenue in APAC
Revenue from selling to countries in the Asia Paciﬁc region
as a percentage of total revenue.
15.6%
Performance
2022
2021
2020
15.6%
15.6%
18.9%
Progress
In line with prior year, with higher growth areas outside
ofAPAC since 2020.
Link to strategy
1 3
90.1p
Performance
2022
2021
2020
90.1p
69.9p
9.0p
Progress
Increase driven by higher adjusted proﬁt aer tax* and
lower eective tax rate.
Link to strategy
1 2 3
18.8%
Performance
2022
2021
2020
18.8%
18.0%
4.1%
Progress
Increase driven by higher adjusted operating proﬁt*, partly
oset by increased capital employed because of the recent
acquisitions.
Link to strategy
1 2 3