Insider: buying at Lloyds Bank plus this TikTok and YouTube supplier

A boom in demand from social media influencers is helping this small-cap share grow fast, and a new non-executive director is also picking up stock in Lloyds Bank. 

A director of FTSE 250-bound Videndum (LSE:VID) has spent £55,000 on shares after the media content support business formerly known as Vitec traded near to its high for the year.

Audit committee chair Erika Schraner, who has two decades of experience working in Silicon Valley and joined the board in May, bought the shares on Thursday at a price of 1,453p.

Her move was made a week after better-than-expected half-year results helped Videndum’s shares hit their 2022 high point at 1,530p. They closed last week back at 1,394p for a valuation of £640 million, still on a par with the likes of Moonpig Group Ordinary Shares (LSE:MOON), Currys (LSE:CURY) and NCC Group (LSE:NCC) and meaning the Richmond-based company is in the frame for promotion to the FTSE 250 index.

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The next reshuffle is based on tonight’s (Tuesday’s) closing prices and will be confirmed by FTSE Russell tomorrow. The promotion is an ideal way for Videndum to boost its profile after switching from Vitec in order to avoid confusion with other companies of the same name.

The use of the Latin noun, which means "a must see", reflects its focus on customers ranging from broadcasters and media studios through to vloggers and influencers.

Products include video transmission systems, live streaming solutions, smartphone accessories, robotic camera systems and LED lighting. The business, whose brands include Autocue, Colorama and Teradek, employs 2,000 people in 11 countries.

Half-year revenues recently hit a record £223.6 million as Videndum’s market continues to grow at a much faster pace than before the pandemic.

TikTok and YouTube influencers drive growth

The drive for original content for subscription TV channels has been one factor, while TikTok and YouTube influencers who use the company's JOBY supports, lights and audio, backgrounds and graphics now account for about 10% of revenues.

An addressable market that stood at £2 billion in 2019 is expected to be worth about £4 billion by 2025, further underpinned by the pace of technology change causing shorter product replacement cycles.

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On the margin side, the company’s product quality and brand strength has enabled it to implement price rises that have kept it ahead of inflationary pressures.

Adjusted profits rose 36% to £27.1 million and the full-year outturn is expected to be towards the top end of City forecasts of between £51 million to £54.6 million, compared with £42.4 million in 2021. At a capital markets day in June, the company led by chief executive Stephen Bird outlined an ambition to deliver £600 million in revenues by 2025.

A dividend of 15p a share will be paid on 28 October to shareholders on the register on 23 September, representing a policy to focus on cover of 2-2.5 times adjusted earnings.

Peel Hunt increased its price target from 1,650p to 1,720p in the wake of this month’s half-year results. The broker said the company’s updated guidance equated to 20 times 2022 earnings, falling to just under 18 times for 2023.

It said: “The company’s end markets remain very attractive as the battle for subscribers drives huge investment in content by streaming services, and as more and more people make a living out of independent content creation.”

A maiden share purchase at Lloyds Bank

The newest member of the Lloyds Banking Group (LSE:LLOY) board has made his first purchase of the FTSE 100-listed company’s shares in a transaction worth £65,700.

Scott Wheway, who was appointed as a non-executive director on 1 August, picked up 150,000 shares on Wednesday at a price of 43.8p.

The UK’s biggest lender was 45.7p earlier this month, but shares closed last week at 43.67p as the Bank of England’s recent recession warning for 2023 clouds the outlook against a backdrop of margin-enhancing interest rate hikes.

Wheway, who is chair of British Gas owner Centrica (LSE:CNA), knows the financial services industry well after board roles at Aviva (LSE:AV.) and Santander UK. He previously worked in the retail sector, where positions included chief executive of Best Buy Europe and managing director of Boots.

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At Premier Foods (LSE:PFD), new board member Roisin Donnelly spent £50,000 on shares in the Mr Kipling and Sharwood’s maker for the first time since her appointment in May.

She did so on Wednesday at a price of 109.5p, which compares with the 115p seen in July after the company reported  good progress recovering input cost inflation. Donnelly has over 30 years’ marketing and brand building experience at consumer goods giant Procter & Gamble Co (NYSE:PG), including 12 years as chief marketing officer for UK and Ireland.