Shares in Videndum PLC (LSE:VID) jumped 33% to 49.19p after the media equipment group reported a sharp improvement in trading for the third quarter and said constructive talks with lenders were ongoing.
The company, which had been hit hard earlier in the year by weak market demand, said third-quarter revenue was down just 8% year-on-year, a marked recovery from the 25% drop seen in the first half.
Excluding the boost from the 2024 Paris Olympics, this represents its strongest quarter in over a year.
September orders were 6% ahead of last year, helping to lift the group’s order book by 40% on a year-on-year basis.
EBITDA for the third quarter came in 50% higher than the first half, driven by recovering demand and the impact of a £19 million cost-saving plan.
Net debt stood at £139 million at the end of September, including £27 million in lease liabilities.
The company said 80% of the £5 million proceeds from the sale of its JOBY brand had already been received, with the remainder due within six months.
Videndum also confirmed it had met its September EBITDA covenant and continues to negotiate a broader deleveraging plan with lenders.
A temporary £10 million trailing EBITDA covenant has been set for October, though the company expects flexibility if that target is missed and lender talks continue constructively.
The board said its expectations for the financial year 2026 remain unchanged.