MediaZest Plc - Final Results
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part
of
(“MediaZest”, the “Company”, or the “Group”)
Final Results
32% increase in revenues and return to EBITDA profitability
Outlook for FY25 is positive with a strong forward order book and encouraging forward visibility into the new financial year. The Board expects to see further improvement in the Company’s financial performance in 2025.
Financial Highlights
Year ended 30 September FY24 FY23
£’000 £’000
Revenue 3,074 2,335
Gross Profit 1,595 1,262
Gross Margin 52% 54%
EBITDA1 14 (322)
(Loss)/Profit after tax (214) (553)
(Loss)/Earnings per share (pence) (0.0133) (0.0396)
Cash 64 40
1 EBITDA is defined as (Loss)/Profit before tax adding back Finance costs, depreciation and amortisation
Operational Highlights
-- Strong Q4 trading with key customers continuing to roll-out digital
signage installations across multiple sites
-- Growth in longer-term recurring revenue contracts, with a recurring
annual run rate at 30 September 2024 of c. £0.9m (At September 2023 : c.
£0.7m)
-- European subsidiary in the Netherlands continues to deliver strong
revenue growth, driven by automotive customer demand
-- Significant projects undertaken during the year include:
# Pets at Home– Continued roll out of digital signage solutions, now in
over 100 stores across the UK
# LululemonAthletica- UK projects, as well as new stores in Oslo ,
Stockholm and Berlin
# Kia –Carshow room audio visual roll outs continued in the Netherlands ,
Ireland and Slovakia
# Hyundai –Show room audio visual upgrades and ongoing support and
maintenance
# First Rate Exchange Services –Successful “proof of concept” project
for the supply of digital currency boards into UK post offices
Notice of Investor Presentation
For further information please contact:
MediaZest Plc
www.mediazest.com
Geoff Robertson , Chief Executive Officer via Walbrook PR
SP Angel Corporate Finance LLP (Nomad) Tel: +44 (0)20 3470 0470
David Hignell / Adam Cowl Hybridan LLP (Corporate Broker) Tel: +44 (0)20 3764 2341
Claire Noyce
Walbrook PR (Media & Investor Relations ) Tel: +44 (0)20 7933 8780 or
mediazest@walbrookpr.comPaul McManus / Lianne Applegarth Mob: +44 (0)7980 541 893 / +44 (0)7584
391 303 /
Alice Woodings
+44 (0)7407 804 654
About
MediaZest’s new AIM rule 26 investor site is now available to view on the Company website here: https://www.mediazest.com/about/investor-relations/
Chairman’s statement
The Board presents the consolidated audited results for the year ended
About
1. Retail - Major high street retail brands continue to transition to digital
signage displays including window displays, self-service kiosks and
large-scale displays such as LED and videowalls.
1. Automotive - The role of technology in automotive showrooms has also
evolved with major automotive brands increasingly using audio-visual
solutions on their sites.
1. Corporate Offices - Typical projects in this sector include hybrid meeting
rooms, video conferencing technology and innovation centres.
During the last financial year the Group worked with customers such as
Pets at Home, Lululemon Athletica, KIA, Hyundai,
Overview
The Board is delighted to report to shareholders that the trading performance of the Group has significantly improved over the last year.
Financial Review
The improved FY24 trading performance, showing a 32% increase in revenues to £3.074m (FY23: £2.335m), reflects the resumption of key client projects in FY24, following a period of uncertainty within the macro-economic environment, which impacted decision making regarding quantum and the timing of the roll out of digital signage and audio systems in FY23.
At the beginning of the financial year, the Board targeted a return to year-on-year growth, alongside a return to EBITDA profitability, and we are pleased to deliver against these objectives.
We are particularly pleased to see further growth in longer-term recurring revenue contracts, having ended the financial year with a recurring annual run rate of approximately £0.9m, up from £0.7m as at
_______________________________________________ |Year ended 30 September|FY24 |FY23 |FY22 |FY21 | |_______________________|_____|_____|_____|_____| |Revenues (£’000) |3,074|2,335|2,820|2,246| |_______________________|_____|_____|_____|_____|
Group results for the year and Key Performance Indicators ("KPIs")
-- Revenue for the year increased 32% to £3,074,000 (2023: £2,335,000)
-- Gross profit increased 26% to £1,595,000 (FY23: £1,262,000)
-- Consistent gross margins of 52% (FY23: 54%)
-- Administrative expenses excluding depreciation and amortisation were
£1,582,000 (FY23: £1,487,000)
-- EBITDA profit was £14,000 (FY23: £322,000 loss)
-- Loss after tax of £214,000 (FY23: £553,000 Loss)
-- Basic and fully diluted earnings / loss per share 0.0133 pence (FY23:
loss per share 0.0396 pence )
-- Net assets of the Group were £593,000 (FY23: £688,000)
-- Cash in hand at 30 September 2024 was £64,000 (FY23: £40,000)
Operational Review
FY24 saw strong client demand for our audio-visual solutions return across the three key sectors that
We continue to be encouraged by new project opportunities within our existing client base, as well as seeing incoming opportunities with new potential customers as a result of additional investment in our marketing activities.
As noted throughout the year. we have been particularly active delivering projects for a number of our key customers. In FY24 we saw the continued roll-out of digital signage solutions for
Pets at Home
, with our solutions now in place in over 100 stores across the
Shortly after the end of the financial year, we announced the completion of a "proof of concept" project with
Our European subsidiary in
Outlook
As a Board we continue to believe that the outlook for the new financial year is encouraging. We have returned to year-on-year revenue growth and we see this momentum continuing into FY25. We have good visibility on ongoing long-term project roll-outs with existing customers, with several confirmed substantial projects in the new financial year.
Going into 2025, recurring revenue streams have been robust with growth expected to continue in FY25.
Initial feedback from the "proof of concept" contract with FRES is that the project has been successful, demonstrating that digital currency boards are an effective alternative to the current static displays. We believe this could present a significant opportunity for
We continue to seek new opportunities in
As previously stated, we believe that adding scale to the current operational business via potential M&A activity would unlock shareholder value. The Board therefore continues to evaluate potential acquisition targets that would further enhance the Group's business.
The Board remains confident in the outlook for the business, and we will target further year-on-year growth and a return to profitability at the pre-tax level in FY25, having already recorded a positive EBITDA performance in FY24.
The new financial year has started well and we remain very positive about the Group's future.
Chairman
Consolidated Statement of Profit or Loss
for the Year Ended 30 September 2024
2024 2023
£'000 £'000
CONTINUING OPERATIONS
Revenue 3,074 2,335
Cost of sales (1,479) (1,073)
GROSS PROFIT 1,595 1,262
Administrative expenses (1,655) (1,554)
OPERATING LOSS BEFORE EXCEPTIONAL ITEMS (60) (292)
Exceptional items - (97)
OPERATING LOSS (60) (389)
Finance costs (151) (164)
LOSS BEFORE INCOME TAX (211) (553)
Income tax (3) -
LOSS FOR THE YEAR (214) (553)
Loss attributable to:
Owners of the parent (214) (553)
Earnings per share expressed in pence per share:
Basic (0.0133) (0.0396)
Diluted (0.0133) (0.0396)
Consolidated Statement of Profit or Loss and Other Comprehensive Income
for the Year Ended 30 September 2024
2024 2023
£'000 £'000
LOSS FOR THE YEAR (214) (553)
OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (214) (553)
Total comprehensive income attributable to:
Owners of the parent (214) (553)
Consolidated Statement of Financial Position
2024 2023
£'000 £'000
ASSETS
NON-CURRENT ASSETS
Goodwill 2,772 2,772
Owned: Property, plant and equipment 56 60
Right-of-use: Property, plant and equipment 355 37
3,183 2,869
CURRENT ASSETS
Inventories 76 97
Trade and other receivables 649 406
Cash and cash equivalents 64 40
789 543
TOTAL ASSETS 3,972 3,412
EQUITY
SHAREHOLDERS' EQUITY
Called up share capital 3,686 3,656
Share premium 5,331 5,244
Share option reserve 146 146
Retained earnings (8,572) (8,358)
TOTAL EQUITY 591 688
LIABILITIES
NON-CURRENT LIABILITIES
Financial liabilities - borrowings
Interest bearing loans and borrowings 492 195
CURRENT LIABILITIES
Trade and other payables 1,412 1,308
Financial liabilities - borrowings
Interest bearing loans and borrowings 1,477 1,221
2,889 2,529
TOTAL LIABILITIES 3,381 2,724
TOTAL EQUITY AND LIABILITIES 3,972 3,412
Consolidated Statement of Changes in Equity
for the Year Ended 30 September 2024
Called up
Share Total
Share Retained earnings Share premium
option reserve equity
capital
£'000 £'000 £'000 £'000 £'000
Balance at 1 3,656 (7,805) 5,244 146 1,241
October 2022
Changes in
equity
Total
comprehensive - (553) - - (553)
income
Balance at 30 3,656 (8,358) 5,244 146 688
September 2023
Changes in
equity
Issue of share 30 - 87 - 117
capital
Total
comprehensive - (214) - - (214)
income
Balance at 30 3,686 (8,572) 5,331 146 591
September 2024
Consolidated Statement of Cash Flows
for the Year Ended 30 September 2023
2024 2023
£'000 £'000
Cash flows from operating activities
Cash generated from operations (108) 162
Net cash (used in)/generated from operating activities (108) 162
Cash flows from investing activities
Purchase of tangible fixed assets (28) (47)
Sale of tangible fixed assets - 16
Net cash used in investing activities (28) (31)
Cash flows from financing activities
Other loans receipt/(repayment) 13 30
Shareholder loan net receipt 84 131
Bounce back loan (repayment) (8) (10)
Payment of lease liabilities (7) (50)
Proceeds of share issue 120 -
Share issue costs (3) -
Invoice financing (repayment) - (154)
Interest paid (39) (83)
Net cash from/(used in) financing activities 160 (136)
Increase/(decrease) in cash and cash equivalents 24 (5)
Cash and cash equivalents at beginning of year 40 45
Cash and cash equivalents at end of year 64 40
Notes to the Consolidated Financial Statements
for the Year Ended 30 September 2024
The financial information set out in this announcement does not constitute statutory accounts as defined in section 435 of the Companies Act 2006.
The financial information for the period ended
The statutory accounts for the year ended
The 2024 accounts will be delivered to the Registrar of Companies following the Company's Annual General Meeting, details of which will be announced shortly.
1. Going concern
The Group made a loss after tax of £214,000 and has net current liabilities of £2,100,000. The financial statements are prepared on a going concern basis which the Directors believe to be appropriate for the following reasons:
The Directors have considered financial projections based upon known future invoicing, existing contracts, the pipeline of new business and the increasing number of opportunities it is currently working on in 2025, the expected macroeconomic environment and prior year trading.
Several substantial new contracts have been won during the new financial year, ongoing roll out projects with existing clients continue apace, and recurring revenues have grown significantly in the second half of calendar year 2024.
Management has engaged with clients where possible to understand their plans for the coming year and the likely timing of those plans. Several have indicated substantial projects which they expect to work with the Company to deliver in the next 12 months, however as always, timing remains difficult to predict.
The Directors have received written confirmation from the holders of the shareholder loans that these liabilities will not be called within 12 months of signing these financial statements unless the company has sufficient cash resources with which to make such payments.
These forecasts indicate that the Company will generate sufficient cash resources to meet its liabilities as they fall due over the 12-month period from the date of the approval of the accounts. As a result the Directors consider that it is appropriate to draw up the accounts on a going concern basis. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.
1. Segmental reporting
Revenue for the year can be analysed by customer location as follows:
2024 2023
£'000 £'000
UK and Channel Islands 2,652 1,979
Rest of Europe 422 356
3,074 2,335
An analysis of revenue by type is shown below:
2024 2023
£'000 £'000
Hardware and installation 2,529 1,686
Support and maintenance - recurring revenue 453 595
Other services (including software solutions) 92 54
3,074 2,335
Analysis of revenue recognition:
2024 2023
£'000 £'000
Recognised at a point in time 2,573 1,688
Recognised over time 501 647
3,074 2,335
Analysis of future obligations:
2024 2023
£'000 £'000
Performance obligations to be satisfied in the next year 402 439
Performance obligations to be satisfied in later years - -
402 439
Segmental information and results
The Chief Operating Decision Maker ('CODM'), who is responsible for the allocation of resources and assessing performance of the operating segments, has been identified as the Board. IFRS 8 requires operating segments to be identified on the basis of internal reports that are regularly reviewed by the Board. The Board have reviewed segmental information and concluded that there is only one operating segment.
The Group does not rely on any individual client, however there is one client who has contributed over 10% of total revenue. The following revenues arose from sales to the Group's largest client:
2024 2023
£'000 £'000
Goods and services 503 332
Service and maintenance 168 116
Other services - 25
671 473
1. Earnings per share
2024 2023
£'000 £'000
Loss
Loss for the purposes of basic and diluted earnings
per share being net loss attributable to equity (214) (553)
shareholders
2024 2023
Number Number
Number of shares
Weighted average number of ordinary shares for the 1,615,055,911 1,396,425,774
purposes of basic earnings per share
Number of dilutive shares under option or warrant - -
Weighted average number of ordinary shares for the 1,615,055,911 1,396,425,774
purposes of dilutive loss per share
Basic earnings per share is calculated by dividing the loss after tax attributed to ordinary shareholders of £214,000 (2023 loss: £553,000) by the weighted average number of shares during the year of 1,615,055,911 (2023: 1,396,425,774).
The diluted loss per share is identical to that used for basic loss per share as the options are "out of the money" and therefore anti-dilutive.
1. Reconciliation of Loss before income tax to cash generated from operations
Group 2024 2023
£'000 £'000
Loss before income tax (211) (553)
Taxation (3) -
Depreciation charges 74 67
Profit on disposal of fixed assets - (16)
Finance costs 151 164
11 (338)
Decrease in inventories 21 24
(Increase)/decrease in trade and other receivables (244) 268
Increase in trade and other payables 104 208
Cash (used in)/generated from operations (108) 162
1. Cash and cash equivalents
2024 2023
£'000 £'000
Cash and cash equivalents 64 40
