Latest news with #Videndum
Yahoo
24-05-2025
- Business
- Yahoo
Are these 5 heavily-discounted UK shares secretly screaming buys to consider?
Over the last six months, the FTSE All Share has delivered a respectable 6% for holders of these UK shares. That's even after the stock market threw a tantrum in early April following the announcement of US tariffs. However, despite this overall upward trajectory, not every constituent has been so fortunate. Some of the worst-performing British stocks in 2025 include: Videndum (LSE:VID) – down 69% Mobico Group – down 66% Petrofac – down 65% Severfield – down 64% John Wood Group – down 52% In many cases, when a stock sees more than half its market-cap wiped out in the space of six months, there's cause for concern. However in some cases, a sharp drop in share price can present a lucrative buying opportunity if the underlying business is able to recover. As a quick crash course, Videndum focuses on making specialised premium hardware and software for the content creation industry. This includes camera supports, LED lighting, robotic camera systems, and live streaming solutions used by individual content creators as well as full-blown professional production studios. Through a combination of macroeconomic factors paired with worker strikes last year, the media & entertainment industry's in a bit of a cyclical pickle. And the impact of this has emerged in Videndum's financials. While market conditions have slowly begun recovering, Videndum's revenue stream has been on a downward trajectory since 2022. And pairing this with a series of impairment, discontinued operations, and restructuring charges, the bottom line has tumbled into the red. To top things off, management's warned that sales in the first half of 2025 are also likely to continue falling year-on-year. Needless to say, this isn't what investors like to see. However, there may be a glimmer of hope. The media & entertainment industry's expected to deliver a full recovery by the end of 2026. That could be the catalyst Videndum needs to re-spark growth. At the same time, the previously-mentioned restructuring efforts are anticipated to deliver a total of £18m in annualised savings, £15m of which are expected to be realised in 2025. Pairing this with ongoing renegotiations regarding its debt covenants, management seems to be taking the necessary steps to get back on track. So with the shares trading close to their 52-week lows, is now the time to consider buying? Looking at the latest forecasts, Videndum certainly appears to have explosive recovery potential. In fact, one analyst has projected the stock could venture as high as 425p, a 460% potential gain from current prices. However, the group's weakened financial position and slow recovery of its target markets definitely introduce considerable risk to an investment today. Personally, this isn't a tempting proposition right now. But it's still an interesting story to watch carefully moving forward. The other stocks on this list also have their challenges to overcome. Operational headaches and profit warnings are creating uncertainty for Mobico and Severfield. Financial restructuring issues and delayed results have resulted in Petrofac shares getting temporarily suspended, and questionable accounting practices have raised concerns for John Wood Group. None of these is good news for shareholders. So 'screaming buys' they may not be. But by digging deeper, investors may uncover potentially lucrative opportunities among all the chaos. The post Are these 5 heavily-discounted UK shares secretly screaming buys to consider? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Yahoo
05-05-2025
- Business
- Yahoo
Videndum Full Year 2024 Earnings: Revenues Beat Expectations, EPS Lags
Revenue: UK£283.6m (down 7.6% from FY 2023). Net loss: UK£147.0m (loss widened by UK£134.9m from FY 2023). UK£1.56 loss per share (further deteriorated from UK£0.24 loss in FY 2023). We've discovered 3 warning signs about Videndum. View them for free. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) missed analyst estimates significantly. The primary driver behind last 12 months revenue was the Media Solutions segment contributing a total revenue of UK£133.0m (47% of total revenue). Notably, cost of sales worth UK£189.2m amounted to 67% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling UK£125.3m were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how VID's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 3.2% p.a. on average during the next 2 years, compared to a 7.0% growth forecast for the Consumer Durables industry in the United Kingdom. Performance of the British Consumer Durables industry. The company's shares are up 9.3% from a week ago. It's necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Videndum (at least 2 which can't be ignored), and understanding these should be part of your investment process. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
03-05-2025
- Business
- Yahoo
Are these 3 heavily-discounted UK shares worth considering to buy in May?
UK shares in the FTSE 100 have been making a rapid recovery in recent weeks since the early April market sell-off. But not all British stocks have been holding up so well. There's quite a wide range of London-listed companies now trading near their 52-week low at valuations which, on the surface, are starting to look dirt cheap. For example, three that have caught my attention this month are Videndum (LSE:VID), Severfield (LSE:SFR), and Ultimate Products (LSE:ULTP). In terms of business models, all three of these UK shares are quite different from each other. Videndum specialises in hardware and software solutions for content creators, Severfield's focused on creating structural steelworks, while Ultimate Products sells a branded portfolio of homeware products. However, one common characteristic all these companies currently share is that their stock prices are in the gutter. And as a result, the forward price-to-earnings ratios are now looking quite attractive from a value investor perspective. So are these buying opportunities or value traps? Company 12-Month Share Price Performance Forward Price-to-Earnings Ratio Videndum -74% 9.3 Severfield -66% 2.2 Ultimate Products -64% 5.1 Before jumping headfirst into a new value investment, it's important to understand what's driving the stock price down. Looking at these enterprises, there are a few factors at play. However, the primary catalyst for each appears to be: A slower-than-expected rebound in the scripted TV markets following last year's strikes has caused Videndum's revenue to underperform, translating into profit warnings for shareholders Disruption within the construction industry has caused a number of Severfield's key projects to be delayed or outright cancelled, with seemingly no sign of improvement on the horizon A combination of weaker UK consumer spending paired with retailer inventory destocking headwinds has caused demand for Ultimate Product's offer to suffer while shipping costs continue to rise There seems to be a common theme here. All three businesses are experiencing a cyclical downturn of some sort. But buying during a downcycle can potentially be lucrative if the firms are able to bounce back. Not all of these UK shares, even at their seemingly cheap valuations today, are tempting me to buy right now. Severfield's the cheapest, according to the forward earnings multiple. But these projected earnings for 2026 include profits for projects that should have materialised in 2025. And with construction headwinds looking unlikely to turn any time soon, the group's downward journey might not yet be over. Videndum seems to be in a better spot, cyclically speaking, as the film & TV industry's recovering at a faster pace compared to the construction sector. Butthe co mpany's also tackling debt and liquidity issues that management's in the process of renegotiating. As for Ultimate Products, the firm appears to offer a stronger financial offer with operational cash flow more than able to cover interest expenses and dividends to shareholders. Operating in a highly competitive industry does give me pause. However, its leading brands, such as Russell Hobbs, Salter, and Dreamtime, definitely give it a competitive edge. With that in mind, value investors looking for cheap UK shares today might want to investigate Ultimate Products a bit more deeply. The post Are these 3 heavily-discounted UK shares worth considering to buy in May? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
