Videndum PLC (LSE:VID) shares rose 15% to 379.41p after the camera equipment and content creation technology company completed an £85 million equity raise and debt refinancing that the board said puts the business on a sound financial footing.
In its results statement, it also set out a medium-term target of revenue in excess of £350 million alongside a mid-teens adjusted earnings margin.
The refinancing, completed earlier this month, comprised an £85 million equity raise that was upsized from £70 million following strong institutional demand, alongside £23 million of debt converted into equity by lender Polus Capital and the write-off of a further £15.8 million of debt by lenders.
The combined effect reduced pro forma net debt by approximately £112 million to £30.6 million, replacing a heavily utilised £146 million revolving credit facility with new facilities totalling £60 million.
The company said it expects good revenue growth in 2026, supported by new product launches, including the Manfrotto ONE stability system and AI-enabled products such as the Vinten VEGA camera tracking system.
Despite the refinancing, the directors acknowledged a material uncertainty that may cast significant doubt over the company's ability to continue as a going concern, noting that if performance falls short of expectations beyond the 12-month assessment period, a sale, restructuring or wider reorganisation may need to be considered.
The caution accompanied a difficult set of full-year numbers for 2025, with revenue from continuing operations falling 19% to £228.3 million, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) declining to £9.0 million from £20.1 million, and the adjusted loss before tax widening to £31.5 million from £25.0 million.
Net debt at 31 December 2025 stood at £142.3 million, up £9.3 million on the prior year.
Videndum said US tariffs had weighed on demand and increased costs during the year, though subsequent tariff reductions in the second half provided some relief, and the company said it had filed for recovery of tariff costs following a US Supreme Court ruling that the relevant tariffs were unlawful.
The company achieved approximately £15 million of cost savings during the year, with a further £8 million targeted in 2026.