23 May 2018
MediaZest Plc
("MediaZest"or the
"Company”; AIM: MDZ)
Trading update
The Board is pleased to present shareholders with an update on
current progress.
Results to the year ended 31 March
2018
As announced at the time of the Interim results on 15
December 2017, the Group expected to show a positive EBITDA at
Group level for the first time in respect of the year ended 31
March 2018, subject to the closing of three large deals.
All three of those deals have been successfully closed, however
project delays outside of the control of the Group have meant that
the majority of the resulting profit will now fall into the current
financial year ended 31 March 2019.
The amount in question is approximately £200,000 worth of net
profit.
As a consequence the Board expects full year results to 31
March 2018 to show revenues in line with the prior year but
profitability marginally behind. Definitive figures will be
provided once the year end audit is completed.
The Board expect that the final results for the year ended
31 March 2018 will show a profitable
year again at Operational level (MediaZest International Limited,
the Group’s subsidiary).
Outlook for the current year ended
31 March 2019
As a result of this likely deferment of expected income from the
prior year, the first quarter of the year to 31 March 2019 is
expected to benefit from an additional net profit of approximately
£200,000. Furthermore, with visibility on other projects and
growing recurring revenue streams, the Board expects considerable
year on year improvement in the results for the 6 months
to 30 September 2018.
The improvement in profitability in the current period at Group
level has led to a consequent increase in cash in hand.
The ongoing improvement in results over recent months is due to
a mixture of new client and new project wins, and is underpinned by
the growth in recurring revenue streams that the Board has targeted
as a strategic priority.
Run rate recurring contractual revenues are now in excess of
£650,000 per annum compared with approximately half that amount at
the same time in the previous year. This is driven by the Group’s
focus on prioritising permanent, fixed installation projects with
ongoing support and content management contracts. Much of this
growth was towards the end of the financial year so the financial
benefits will have a greater impact in the current year.
Client projects and portfolio
Significant new clients in the year have included HP and The
European Bank for Reconstruction and Development, and the Company
continues to have great success in the automotive market with new
Rockar projects for Mitsubishi and Ford.
Well established existing customers such as Ted Baker, Diesel, Clydesdale Bank, Kuoni, HMV,
Halfords and others continue to work with the Group on an ongoing
basis. It is the opinion of the Board and senior management that
the audio visual and digital signage market for high street
retailers is experiencing rapid growth and large scale adoption is
beginning to happen. The Company remains well placed to take
advantage of these opportunities.
The automotive sector has yielded several large opportunities
which the Company is currently pursuing. In automotive retail, the
Group is working with Hyundai, Jaguar Land Rover (with Rockar), VW,
Ford and Mitsubishi (both via Rockar), Opel Germany, and is
pitching to several other brands. Outside of the showroom retail
side of automotive, the Group works with BMW and Fiat in the UK,
providing corporate AV solutions.
Although the Board acknowledges that in the short term the
automotive market faces challenges of its own, it believes that
this is a retail sector in particular need of digital signage
solutions to modernise its sales approach to customers.
Furthermore, that the volume and scale of these operations will
present substantial opportunity to the Group over the coming years,
including overseas opportunities.
A general feature of recent growth has been the increase in
overseas opportunities currently delivered by the Group and this
includes work for Ted Baker, HP and
Nokia in Europe and beyond. Over
the next 2-3 years the Board expects further significant projects
to emanate from outside of the UK as well as strategic growth
opportunities. In many cases, UK companies or initiatives are being
deployed across multi national retail estates and the Group’s
ability to provide consistent solutions across borders, and
experience in doing so, is expected to give another competitive
edge in the coming years.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
Enquiries:
Geoff Robertson
Chief Executive Officer
MediaZest Plc |
0845 207 9378 |
|
|
Tom Price/Edward
Hutton
Nominated Adviser
Northland Capital Partners Limited |
020 3861 6625 |
|
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Claire Noyce
Broker
Hybridan LLP |
020 3764 2341 |
Notes to Editors:
About MediaZest
MediaZest is a creative audio-visual systems integrator that
specialises in providing innovative marketing solutions to leading
retailers, brand owners and corporations, but also works in the
public sector in both the NHS and Education markets. The Group
supplies an integrated service from content creation and system
design to installation, technical support, and maintenance.
MediaZest was admitted to the London Stock Exchange's AIM market in
February 2005. For more information,
please visit www.mediazest.com