Videndum shares plunge as refinancing plan dilutes investor stakes

Shares in Videndum, the camera and film equipment supplier, fell sharply after the company announced a refinancing agreement that will significantly dilute existing shareholder value. On Tuesday, the company revealed it would exchange £23 million of its debt for new equity while seeking a further £70 million from shareholders in a bid to stabilise its financial position.

Videndum, whose brands include Autocue and Sachtler tripods, was valued at more than £700 million three years ago. Its share price has since collapsed, losing 56.6 per cent to close at 13.5p, conferring a market capitalisation just under £15 million. At its peak in the summer of 2022, shares traded above £15. The company cautioned investors that even those who participate in the new fundraising will see their shareholdings reduced considerably. This outcome, management said, is preferable to lenders seizing control of the business, a scenario which would result in no recovery for current shareholders.

Stephen Harris, the recently appointed executive chairman, described reaching agreement on the refinancing as a critical milestone for the group. He asserted the measures will secure a sustainable future for Videndum, positioning it for long-term growth. Videndum traces its origins to 1910, established by William Vinten in London; the company’s brands now supply a vast array of camera accessories, from microphones to specialist lighting. Its products are commonplace across film and television sets worldwide.

The firm’s financial difficulties followed an ambitious acquisition strategy under previous management, leaving it with unsustainably high debts. At the end of November, borrowing peaked at £143.3 million. The planned refinancing, expected to complete in the first quarter of next year, will reduce net debt by more than £90 million, assuming the proposed debt-for-equity swap, the restructuring of £45 million in loans, and the use of £50 million from new shareholder funds to repay obligations.

The company’s largest shareholders have indicated support for the refinancing. However, the fallout of previous acquisitions, failure to integrate new businesses effectively, and industry headwinds—such as the protracted US screenwriters’ strike and trade tariffs imposed during Donald Trump’s presidency—have compounded Videndum’s challenges. While there are nascent signs of revived demand, the road to recovery remains highly contingent on the successful execution of this rescue plan.