MediaZest Plc - Unaudited Interim Results

28 June 2022

MediaZest Plc

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

Unaudited Interim Results for the six months ended 31 March 2022

MediaZest, the creative audio-visual company, announces its unaudited interim results for the six months ended 31 March 2022 (the “Period”).

MediaZest’s interim results are set out below, with comparisons to the same period in the previous year, as well as to MediaZest’s audited results for the year ended 30 September 2021.

CHAIRMAN’S STATEMENT

Introduction

The Board presents the consolidated unaudited results for the six months ended 31 March 2022 for MediaZest plc and its wholly owned subsidiary company MediaZest International Ltd (“MDZI”) (together the “Group”).

Financial Review

• Revenue for the Period was £1,402,000, up 66% (2021: £846,000) due to covid-19 restrictions easing and client projects resuming.
• Gross profit was up by 84% accordingly to £756,000 (2021: £410,000).
• Gross margin rose to 54% (2021: 48%).
• Administrative expenses were £618,000, an increase of 35% (2021: £459,000), mainly due to the furlough scheme coming to an end and staff returning to the office following the easing of covid-19 related restrictions.
• EBITDA was a profit of £138,000 (2021: loss of £49,000).
• Net profit for the period after taxation was £40,000 (2021: loss of £160,000).
• The basic and fully diluted profit per share was 0.0029 pence (2021: loss per share 0.0115 pence).
• Cash and cash equivalents at 31 March 2022 was £46,000 (2021: £16,000).

Operational Review

The results for the Period show significant improvement from the prior year comparative period, with improving profitability at Group level and for the operating subsidiary MDZI, despite the first half traditionally being the slower half of the year for the business.

The second half of the year has begun well and the Board are confident of a significant year on year improvement in financial performance.

Both the prior period and full year comparatives reflect the impact of covid-19, and specifically the UK lockdowns, on client work. These interim results reflect the increased demand across the Company’s three core sectors: Retail, Automotive and Corporate, that has been evident since Spring 2021.

Performance has been particularly pleasing despite challenges relating to the supply of stock and timing of deliveries coupled with rising input costs, which are being carefully monitored and managed by the Group.

Client Work in the Period

The Company’s long-term client base remains consistent and continues to generate new projects. During the Period the Group provided digital signage solutions to another tranche of stores for long-standing client Pets at Home, and the roll out of interactive touchscreens to support the promotion of Electric Vehicles in Hyundai dealerships continued apace. MediaZest also continues to provide and expand its ongoing professional services in support of projects with these clients.

MediaZest also completed work on additional Lululemon Athletica stores as they continue to work with the Group across Europe. Other long-term clients such as Ted Baker, Halfords, Post Office and Samsung continued to utilise professional services provided by MediaZest, including software licences, content management, support and maintenance. As such, the Group continues to have good visibility over recurring revenue streams.

Engagements with new clients began including Britvic and Marubeni and the Group continued to develop its relationships with recently won clients such as Wincanton (logistics) and Vashi (jewellery), with new projects completed and additional opportunities under discussion.

The business development team has been supplemented and continues to identify and work on new client projects.

Outlook

The progress over the last 12 months and the outlook for the remainder of the financial year is encouraging. Long-term clients continue to look to expand the range and number of deployments with the Group, reflective of the high standard of delivery.

MediaZest continues to see new opportunities in Europe. The Board is in the process of establishing an office in mainland Europe (within the EU) to better facilitate project delivery and logistics following Brexit and to capitalise on these new opportunities.

Recurring revenue streams have been robust and the Company continues to target the development of these, as well as additional new client wins.

At a strategic level, the Board believes adding scale to the current operational business via acquisition would unlock shareholder value and the Group continues to evaluate potential targets in the market that may be suitable.

Whilst the three markets in which the Group primarily operates – Retail, Automotive and Corporate – are seeing strong demand at the current time, the Board remains mindful of macro-economic headwinds in the second half of 2022. As such the Group continues to monitor and control the cost base carefully, whilst balancing the growth of the business and continuing to seek additional clients and projects.

Lance O’Neill

Chairman

28 June 2022