Market's view on Videndum Plc
Published on April 2024
- Stock watchers are anticipating the company’s upcoming results to provide a clear baseline for its future direction.
- Management changes are deemed long overdue by stock watchers.
- Concerns are raised about the company’s slow recovery, delayed accounts, absence of dividends, and a challenging operational environment, indicating a prolonged recovery period.
- The company’s direction is perceived positively due to recent director buys, which have improved confidence among investors.
- There is a significant concern over the company’s high net debt, which exceeds £130 million.
- The recent fundraising efforts are criticised for the heavy dilution, drastically reducing the potential share price recovery.
- Stock watchers criticise the high expenditure on acquisitions in the past years, questioning the value these have added to the company.
- The CEO’s role and performance are under scrutiny, especially considering the share price drop and the conditions leading to the recent fundraising at a significantly lower share price.
- The company has offered a 2 for 5 open offer to shareholders, which is not tradeable, forcing shareholders to either subscribe or lose out.
- External factors such as actors’ and writers’ strikes in the USA have affected the company, with a notable impact on operations and stock performance.