MEDIAZEST PLC - Pre-close trading update

MediaZest Plc

("MediaZest", the "Company” or “Group"; AIM: MDZ)

Pre-close trading update

MediaZest, the creative audio-visual company, is pleased to provide shareholders with a pre-close trading update including an update in respect of ongoing and new business.

Financial update

The Group finished the year ended 31 March 2016 with its best ever financial performance.  A number of significant projects were delivered in that period, many of which the Board expects will continue and develop into the current financial year, along with other projects which have been rescheduled into the current financial year.

The Board expects turnover for the financial year of not less than £3.14 million (prior year £2.48 million) and, as a result of improvements in margins and reductions in overhead costs, a maiden  positive full year EBITDA of approximately £50,000 (prior year EBITDA loss of £625,000) and a reduced retained loss of approximately £100,000 (prior year loss of £656,000).

These figures are subject to audit and do not yet include an accounting adjustment under IFRS2 (Share based payments) as a result of the Employee Share Option Scheme which was implemented during the year ended 31 March 2016. Whilst this item does not have any cash implications, it will adversely affect the year end result.

Cash in hand at 31 March 2016 was similar to the prior year end and the Group retains its banking facilities, including an invoice discounting arrangement of up to £500,000 (amount in use as at 31 March 2016, approximately £230,000).

The Board expects to announce final audited results in July 2016.

Trading performance

The final quarter of the last financial year, January to March 2016, was as anticipated quieter than the previous three quarters. The rescheduling of several projects into the current financial year meant that full profitability for the year ended 31 March 2016 was not reached. However, current clients did continue to place business with us, and new customers including Estée Lauder and Mamas & Papas were signed up.

Recurring revenues have grown strongly in the last 12 months, nearly doubling in that period. The Board’s intent is to continue to grow such revenues to provide greater predictability of income.

The Group has now deployed a further two face recognition systems live in retail stores, and part of the ongoing focus for financial year 2016/17 will be developing this solution further and pursuing larger scale roll-out opportunities.

The Group has already closed almost £1 million of new business to be delivered in 2016 and is currently pitching on several large projects. Two of these projects, in particular, have the potential to be transformative for the business.

Recruitment of a replacement Finance Director is well underway and the Board intends to announce an appointment in the next few weeks.

Chief Executive, Geoff Robertson, said: “The Board is pleased with the substantial improvement in financial performance during the last 12 months, whilst recognising that there is further work to be done to move to full profitability beyond the EBITDA level.”

“We have added several key new clients in the period, most of whom we expect to engage with on additional new projects over the coming months and years. Coupled with the growth in our contractual recurring revenues with many of the same clients, we anticipate this will build a more consistent and growing income base for the Group.” 

Enquiries:

Geoff Robertson

Chief Executive Officer

MediaZest Plc                                       0845 207 9378

Edward Hutton / David Hignell

Nominated Adviser

Northland Capital Partners Limited          020 3861 6625

Claire Noyce / William Lynne / Niall Pearson

Broker

Hybridan LLP                                        020 3764 2341/ 2343

Notes to Editors:

About MediaZest

MediaZest is a creative media agency and 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