Videndum PLC (LSE:VID) shares slumped 42.5% to a record low after the imaging and content creation technology group issued a sharp profit warning, citing disruption linked to the conflict in the Middle East, while also announcing a change in its leadership team.
Middle East disruption weighs on trading
The company said first-half trading proved more difficult than anticipated as the ongoing conflict in the Middle East disrupted its operations.
According to Videndum, higher logistics costs, longer delivery times and delays in customer purchasing decisions negatively affected financial performance during the period.
Company cuts full-year profit expectations
Reflecting the weaker trading environment, Videndum lowered its full-year guidance and now expects adjusted core profit to be between £15 million and £18 million, a significant reduction from its previous outlook.
The revised forecast highlights the impact that supply chain challenges and softer customer demand have had on the group’s earnings expectations.
New chief executive appointed
Alongside the trading update, Videndum announced the appointment of Jan Peter Tewes as Group Chief Executive Officer.
The combination of the lower profit forecast and leadership transition prompted a sharp sell-off in the company’s shares, sending the stock to its lowest level since listing.
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