Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Videndum PLC on Tuesday said annual profit was squeezed by rising costs, despite posting record revenue for 2022.
The London-based hardware and software developer did increase its total dividend, however, by 14% to 40.00 pence per share from 35.00p.
Shares in Videndum were up 1.7% to 945.47p each in London on Tuesday morning.
For 2022, pretax profit fell 17% to £24.7 million from £29.6 million in 2021, despite revenue rising 14% to £451.2 million from £394.3 million.
Videndum said the latest revenue figures represented a company record, with organic growth quickening year-on-year. But rising revenue was offset by increasing costs. Cost of sales was up 16% to £255.7 million from £221.2 million, while operating expenses rose 17% to £164.0 million from £139.6 million.
Net debt also rose 33% to £193.5 million on December 31 from £145.2 million a year earlier.
Looking ahead, Videndum said it expects adjusted pretax profit in 2023 to be stable, after it rose 27% to £54.0 million in 2022 from £42.4 million in 2021.
‘The group is uniquely positioned right at the heart of the growing content creation market with attractive market drivers,’ said Chief Executive Stephen Bird.
‘We remain committed to our previously stated organic strategic ambition of circa £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.’
Copyright 2023 Alliance News Ltd. All Rights Reserved.