Investing.com -- Shares of Videndum surged by 14.7% following the release of the company’s fiscal year 2024 results, which aligned with their guidance.

Despite a -5% organic constant currency (OCC) decline year-on-year (YoY) and an EBITA loss of £18.2 million, the company’s performance was buoyed by a break-even result excluding one-off charges.

Additionally, Videndum reported a significant 45% YoY increase in operating cash flow to £16.8 million, and a post-IFRS16 net debt figure of £133 million, consistent with their forecasts.

Looking ahead, management provided cautious optimism. They cited a "soft start" to FY25 due to external factors but noted a strengthening in trading month-by-month.

The outlook suggests flat YoY sales with an anticipated improvement to low single-digit EBITA margins, supported by restructuring actions with savings increased to £18 million.

Furthermore, management is working on refinancing efforts to be completed before September 2025 and has successfully negotiated amended covenants through to August 2026.

Jefferies analysts commented on the complexity of the results and the outlook, acknowledging the efforts made in addressing the challenges faced by Videndum. "There is a lot to digest in today’s update, given the large number of moving parts within the results and the outlook commentary."

"There is still work to be done in FY25F and a refinancing to complete, but a small equity raise (£8m) and sale of Amimon (for £2.6m) will help the Balance Sheet. While consensus needs to move lower (this should be well-understood), the equity story can be further de-risked this year and recovery potential exists," the analysts noted.

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