When hunting for the best shares to buy, starting with the worst-performing stocks can uncover some tremendous bargains. And in 2025, two of the biggest losers on the London Stock Exchange are Videndum (LSE:VID) and Mobico Group (LSE:MCG). In fact, both have dropped by roughly 65% since January.
So is there a potentially hidden buying opportunity here?
What’s going on with Videndum?
As a quick crash course, Videndum specialises in designing and manufacturing specialist hardware and software for broadcasters, film studios, and content creators. This includes camera rigs, LED lighting, and audio solutions, among others.
It’s a bit of a niche segment that’s been disrupted in recent years following the pandemic and project delays created by the shifting economics of the film industry. Sadly, in 2025, the situation continues to be tough. Demand remains relatively weak with revenues sliding in its interim results by 25% with the bottom line falling further into the red, year on year.
US tariffs have only compounded the headaches, with distributors hitting the pause on new orders. And while management did raise some cash through equity, the group’s balance sheet isn’t in a terrific state.
That certainly explains why the stock’s taken such an extreme tumble. But what about a potential recovery?
Despite the challenges, Videndum’s successfully started unlocking meaningful annual savings with a target of £15m by the end of 2025. At the same time, the group’s debt covenant reset in April has provided some wiggle room to start mending the balance sheet while also launching new products.
If these de-risking efforts are a success and North American orders begin to normalise, there could be a viable path to recovery moving forward.
And Mobico?
Mobico’s probably better known by its original name – National Express. And the bus, coach, and rail services operator has also had a tough time of late. Unlike Videndum, revenues are still moving in the right direction. But sadly, that hasn’t stopped net earnings from being elusive.
Admittedly, a large chunk of its losses are non-cash impairment charges, mostly linked to its North American School Bus business. This segment has long proven problematic, and management’s in the process of selling it off using the proceeds to pay down debt.
This is likely the wisest move. After all, Fitch – the credit rating agency – recently downgraded Mobico to a BB+ rating. That’s just below the threshold of investment-grade bonds and implies that any future borrowing activity will come with significantly higher interest rate payments.
The asset sale is expected to reduce the group’s gearing from 3.0 to 2.5. That’s still pretty high, but a lot more manageable. And with passenger demand elsewhere in the business remaining strong, along with upcoming price adjustments, management’s guidance suggests improvements in underlying operating income in the second half of 2025 – potentially signalling the start of a recovery.
The bottom line
Both Videndum and Mobico will need flawless execution to deliver on a strong rebound. Given their recent track records, that’s quite a big ask. As such, I don’t think investors should be considering these as top shares to buy right now.
However, if both businesses can demonstrate more progress towards recovery, then it might be worth taking a closer look. For now, I’m looking at other investing opportunities.
