Camera accessories producer Videndum has blamed last year’s industrial action among writers in Hollywood for a 30 per cent drop in revenue.
The London-listed firm today said that the strike, along with “challenging macroeconomic environment and de-stocking” led to revenue sliding to £306.9m for the year, against £442.5m the year prior.
Operating profit fell 81 per cent to £12.8m, while adjusted profit before tax sank to just £1.3m from £60.2m the year prior.
Net debt, meanwhile, fell to £128.5m from £193.5m and the company was able to raise £125m during the period to de-leverage and support its strategy during the down period.
From 2 May to 27 September last year, the Writers Guild of America (WGA)—representing 11,500 screenwriters went on strike over a labour dispute with the Alliance of Motion Picture and Television Producers (AMPTP).
At 148 days, the strike is the second-longest that the WGA has performed and served as the biggest interruption to the US film and television industries since the coronavirus pandemic.
Looking ahead, Videndum said it is confident that the post-strike recovery will continue to be strong, however the anticipated scripted TV and cinema market swell has not yet occurred.
This, the company added, will give the 2024 performance a significant second-half weighting.
Videndum chief executive Stephen Bird said: “2023 was an exceptionally challenging year for Videndum … We acted quickly to reduce costs and manage cash, and, with the support of our shareholders, deleveraged through a capital raise, which has enabled us to preserve the long-term capabilities of the business.
“The macroeconomic environment remains challenging, and we have therefore maintained our relentless focus on managing costs tightly, and controlling capital expenditure and working capital.
“We remain confident that the group will benefit from a strong recovery in 2024, however, with an increased second half weighting as the cine and scripted TV market gradually recovers.
Earlier this month, Hollywood performers and media artists struck what one major union described as a “groundbreaking” agreement with major record labels to protect their work against the rising influence of artificial intelligence (AI).
