REG-MediaZest Plc: Final Results
07/03/2025 07:15
7 March 2025
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
MediaZest Plc
(“MediaZest”, the “Company”, or the “Group”)
Final Results
32% increase in revenues and return to EBITDA profitability
MediaZest plc (AIM: MDZ), the creative audio-visual solutions provider,
announces its consolidated audited results for the year ended 30 September
2024 (“FY24”), which showed a return to year-on-year growth, a return to
positive EBITDA and an improved cash position following a strong Q4 trading
performance.
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%
EBITDA 1 14 (322)
(Loss)/Profit after tax (214) (553)
(Loss)/Earnings per share (pence) (0.0133) (0.0396)
Cash 64 40
1EBITDA 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
* Lululemon Athletica - UK projects, as well as new stores in Oslo, Stockholm
and Berlin
* Kia – Car show 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
Geoff Robertson, Chief Executive Officer of MediaZest, commented: “We are
delighted with MediaZest’s strong performance in the second half of the
year, and the growing momentum we have brought into the new financial year.
Our order book and overall forward visibility is encouraging and we look to
continue this momentum throughout 2025.”
Notice of Investor Presentation
Geoff Robertson, Chief Executive Officer, will provide a live presentation in
relation to the Company’s Final Results via the Investor Meet Company
platform on Wednesday 19 March 2025 at 11am GMT. The presentation is open to
all existing and potential shareholders. Investors can sign up to Investor
Meet Company for free and register
here: https://www.investormeetcompany.com/mediazest-plc/register-investor
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.com
Paul McManus / Lianne Applegarth Alice Woodings Mob: +44 (0)7980 541 893 / +44 (0)7584 391 303 / +44 (0)7407 804 654
About MediaZest (www.mediazest.com)
MediaZest is a creative audio-visual solutions provider that specialises in
delivering innovative digital signage and audio systems to leading retailers,
brand owners and corporations. The Group offers 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 in
February 2005.
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/
MediaZest Plc
Chairman’s statement
The Board presents the consolidated audited results for the year ended 30
September 2024 for MediaZest plc ("MDZ" or the “Company”) and its wholly
owned subsidiary companies MediaZest International Ltd ("MDZI") and MediaZest
International BV ("MDZBV") which together constitute the "Group".
About MediaZest
MediaZest is a creative audio-visual solutions provider that specialises in
delivering innovative digital signage and audio systems. The Group offers an
integrated service from content creation and system design to installation,
technical support, and maintenance and operates in three core sectors:
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, First Rate Exchange Services,
Wincanton, Harrods, Arc'Teryx and Castore.
Overview
The Board is delighted to report to shareholders that the trading performance
of the Group has significantly improved over the last year. MediaZest has
returned to year-on-year revenue growth, has delivered a return to
profitability at the EBITDA level, and has made further improvement in the
Company's overall cash position following a strong trading performance in
2024.
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 September 2023.
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 MediaZest focusses on, namely Retail, Automotive, and
Corporate Office spaces. A number of large-scale deployments had been delayed
in FY23 and it was reassuring to see a number of well-known brands roll-out
new digital signage displays across multiple locations during the financial
year. Our long-term client base remains consistent, and we enter the new
financial year with a greater degree of visibility on further roll-out
programmes expected during 2025.
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 UK. We also completed installation for
Lululemon Athletica within the UK as well as in new stores in Oslo, Stockholm
and Berlin. Both Hyundai and Kia are major clients within the automotive
industry and we have installed new digital signage for the former across
dealerships in the UK and with the latter in three territories across Europe.
Shortly after the end of the financial year, we announced the completion of a
"proof of concept" project with First Rate Exchange Services ("FRES") whereby
we installed digital currency boards across 50 UK Post Office locations. These
boards offer customers daily live exchange rates, supporting marketing
materials and offers relating to the Post Office's foreign currency exchange
services.
Our European subsidiary in the Netherlands continues to deliver strong revenue
growth driven by automotive customer demand and other projects.
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 MediaZest, given that FRES provides rate
boards to approximately 1,500 Post Office branches and supplies currency
exchange services to a range of clients including John Lewis, Hays Travel, and
TUI.
We continue to seek new opportunities in Europe and our Dutch subsidiary
continues to perform well and attract client interest.
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.
Lance O'Neill
Chairman
6 March 2025
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
30 September 2024
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 capital Retained earnings Share premium Share option reserve Total equity
£'000 £'000 £'000 £'000 £'000
Balance at 1 October 2022 3,656 (7,805) 5,244 146 1,241
Changes in equity
Total comprehensive income - (553) - - (553)
Balance at 30 September 2023 3,656 (8,358) 5,244 146 688
Changes in equity
Issue of share capital 30 - 87 - 117
Total comprehensive income - (214) - - (214)
Balance at 30 September 2024 3,686 (8,572) 5,331 146 591
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 30 September 2023 is derived
from the statutory accounts for that year which have been delivered to the
Registrar of Companies. The auditors reported on those accounts;
their report was (i) unqualified, (ii) did not contain a statement under
section 498(2) or 498(3) of the Companies Act 2006 and (iii) drew attention by
way of emphasis to a material uncertainty related to going concern.
The statutory accounts for the year ended 30 September 2024 have not yet
been delivered to the Registrar of Companies. The auditors reported on those
accounts; their report was (i) unqualified, (ii) did not contain a statement
under section 498(2) or 498(3) of the Companies Act 2006, and (iii) did not
draw attention by way of emphasis to any matters.
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 shareholders (214) (553)
2024 2023
N umber N umber
Number of shares
Weighted average number of ordinary shares for the purposes of basic earnings per share 1,615,055,911 1,396,425,774
Number of dilutive shares under option or warrant - -
Weighted average number of ordinary shares for the purposes of dilutive loss per share 1,615,055,911 1,396,425,774
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
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