TIDMMDZ 
 
Market Abuse Regulation (MAR) Disclosure 
   Certain information contained in this announcement would have been deemed 
inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 
                    until the release of this announcement 
 
23 December 2019 
 
                                 MediaZest plc 
 
                  ("MediaZest", the "Company" or the "Group") 
 
Unaudited results for the six months ended 30 September 2019 
 
MediaZest (AIM: MDZ), the creative audio-visual company, announces its 
unaudited interim results for the six months ended 30 September 2019. 
 
CHAIRMAN'S STATEMENT 
 
Introduction 
 
The Board presents the consolidated unaudited results for the six months ended 
30 September 2019 for MediaZest plc and its wholly owned subsidiary company 
MediaZest International Ltd (together the "Group"). 
 
Financial Review 
 
  * Revenue for the period was GBP943,000 (Restated 2018: GBP2,136,000) 
  * Gross profit was GBP475,000 (Restated 2018: GBP1,049,000), impacted by delay to 
    a major project 
  * Sharp improvement in performance post period end with Profit after tax in 
    October and November of GBP44,000 on revenue of GBP709,000 (2018: loss of GBP 
    12,000 on revenue of GBP531,000) 
  * Gross margins were consistent at 50% (Restated 2018: 49%) 
  * EBITDA was a loss of GBP140,000 (Restated 2018: profit of GBP273,000) 
  * Net loss for the period after taxation of GBP228,000 (Restated 2018: profit 
    of GBP207,000) 
  * The basic and fully diluted loss per share was 0.0163 pence (Restated 2018: 
    earnings per share 0.0161 pence) 
  * Overdraft at period end was GBP6,000 (2018: cash in hand of GBP12,000). The 
    period end cash position is reflective of payments made to suppliers prior 
    to the month end and large receipts from customers falling in October and 
    November. Cash in hand at close of business 20 December 2019 was GBP38,000. 
 
Operational Review 
 
As shown in the Financial Review above, the results for the six months to 30 
September 2019 were adversely affected by the difficult business conditions 
encountered in the current year, by way of comparison with the prior period. 
This shows a reduction in both revenue and profitability at Group level. 
 
In anticipation of the possibility of this slowdown, the Board implemented a 
cost cutting programme during January and February 2019 and reduced the cost 
base by approximately GBP200,000 for the current financial year. The impact of 
this was to reduce ongoing costs and overheads, half of which was experienced 
in the period, thus having a mitigating effect on the reduction in project 
activity. 
 
The impact on the interim results was accentuated by delays to a large project 
with a UK University, as noted in the Group's Final Results announcement of 28 
August 2019. This project is currently progressing towards completion, with the 
majority of the work falling into October and November 2019. 
 
In light of the above, the Directors believe the results for the six month 
period ending 30 September 2019 should be viewed alongside MediaZest's stronger 
performance during October and November 2019, when the Group generated profit 
after tax of GBP44,000, based on revenue of GBP709,000. Accordingly, key 
performance indicators for the eight month period to 30 November 2019 are 
revenue of GBP1,652,000, loss at EBITDA of GBP95,000 and a loss after tax of GBP 
184,000. 
 
The Group's operating subsidiary, MediaZest International, shows corresponding 
profit after tax of GBP83,000 and EBITDA of GBP150,000 within those results before 
deduction of Plc costs, for the eight months to 30 November 2019. 
 
Client Work 
 
The Group continues to service a core of long-standing client accounts 
including Lululemon Athletica, Tiffany & Co, Kuoni, Ted Baker, HMV and Hyundai, 
all of which undertook new projects with the Group during the period under 
review. In addition, our work with Pets at Home continues and the Company has 
now provided audio visual solutions for a further twelve stores since 1 April 
2019 with a further six scheduled to be completed early in 2020. New clients 
added to date in the current financial year include Twinings, Belron and Avis 
Budget Group. In addition, the Group has recently won a high-profile project 
with a global luxury automotive brand, which is also a new client, and expects 
to announce further details regarding this project during 2020. 
 
Recurring revenues have diminished by approximately 7% during the period with 
renewals strong, but with a small number of store closures and projects 
completing leading to a reduction in retainer income. This has led to an 
ongoing annualised recurring revenue base total of approximately GBP650,000 
(2018: approximately GBP700,000). The Board is targeting a run rate of GBP700,000 
worth of recurring revenues by the end of the financial year, which would cover 
almost 50% of the cost base going into the next financial year. 
 
Administrative costs have been reduced, primarily, by refining the already lean 
team of dedicated in house staff that the Company employs and by relinquishing 
the London sales office. The Group is also looking to generate more new 
business in the Corporate and Education markets in order to reduce the reliance 
on the proportion of business completed in the retail sector. As such, further 
investment in the sales and marketing process has been made during the period 
to target these markets. 
 
The introduction of IFRS16 has had an impact on the way the Company accounts 
for leases as shown in note 6 to these results. 
 
Outlook 
 
As noted, both in this statement and previously, the UK market continues to 
suffer from macroeconomic headwinds particularly in the Retail sector, leading 
to delayed investment decisions, cost cutting programmes and the termination of 
projects by clients. Despite these pressures, over the last three months, the 
Group has seen a marked increase in enquiries and built an encouraging pipeline 
for 2020. Several existing clients have already indicated plans to extend their 
engagement with the Company substantially in 2020 via new projects and the 
expansion of existing programmes. 
 
Notwithstanding the disappointing performance in the period, the Board believes 
that the new calendar year will provide opportunities for the Group to continue 
the progress it made in the last Financial Year ended 31 March 2019. 
 
Feedback from clients on projects delivered remains encouraging and, as such, 
the quality of the services provided by the Company gives cause for optimism as 
a continued differentiator in the market. The Directors continue to review 
costs on a month by month basis and will make further adjustments as necessary 
based on market conditions as they evolve in the coming period. 
 
Lance O'Neill 
 
Chairman 
 
23 December 2019 
 
                      CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
 
                        FOR THE SIX MONTHSED 30 SEPTEMBER 2019 
 
                                                     Unaudited       Restated      Audited 
                                                                    Unaudited 
 
                                                    Six months     Six months    12 months 
 
                                           Notes     30-Sep-19      30-Sep-18    31-Mar-19 
 
                                                         GBP'000          GBP'000        GBP'000 
 
Continuing Operations 
 
Revenue                                                    943          2,136        3,303 
 
Cost of sales                                            (468)        (1,087)      (1,628) 
 
                                                  ------------   ------------ ------------ 
 
Gross profit                                               475          1,049        1,675 
 
Administrative expenses                                  (615)          (776)      (1,546) 
 
                                                  ------------   ------------ ------------ 
 
EBITDA                                                   (140)            273          129 
 
Administrative expenses - depreciation &                  (40)           (10)         (40) 
amortisation 
 
                                                  ------------   ------------ ------------ 
 
Operating (Loss)/Profit                                  (180)            263           89 
 
Finance Costs                                             (48)           (56)         (83) 
 
                                                  ------------   ------------ ------------ 
 
(Loss)/Profit before taxation                            (228)            207            6 
 
Taxation                                                     -              -            - 
 
                                                      ========       ========     ======== 
 
(Loss)/Profit for the period and total                   (228)            207            6 
comprehensive loss/income for the period 
attributable to the owners of the parent              ========       ========     ======== 
 
Earnings/(Loss) per ordinary 0.1p share 
 
          Basic                              2       (0.0163)p        0.0161p      0.0004p 
 
          Diluted                            2       (0.0163)p        0.0161p      0.0004p 
 
 
 
                      CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
 
                                 AS AT 30 SEPTEMBER 2019 
 
                                           Unaudited           Unaudited          Audited 
 
                                     As at 30-Sep-19     As at 30-Sep-18  As at 31-Mar-19 
 
                                               GBP'000               GBP'000            GBP'000 
 
Non-current assets 
 
Goodwill                                       2,772               2,772            2,772 
 
Property, plant and equipment                    241                  58               62 
 
Intellectual property                              1                   2                1 
 
                                        ------------        ------------     ------------ 
 
Total non-current assets                       3,014               2,832            2,835 
 
Current assets 
 
Inventories                                       98                  97               69 
 
Trade and other receivables                      356                 596              481 
 
Cash and cash equivalents                          -                  12               24 
 
                                        ------------        ------------     ------------ 
 
Total current assets                             454                 705              574 
 
Current liabilities 
 
Trade and other payables                     (1,012)             (1,175)          (1,017) 
 
Financial liabilities                          (708)               (434)            (548) 
 
                                        ------------        ------------     ------------ 
 
Total current liabilities                    (1,720)             (1,609)          (1,565) 
 
Net current liabilities                      (1,266)               (904)            (991) 
 
Non-current liabilities 
 
Financial liabilities                          (159)                (17)             (25) 
 
                                        ------------        ------------     ------------ 
 
Total non-current liabilities                  (159)                (17)             (25) 
 
                                            ========            ========         ======== 
 
Net assets                                     1,589               1,911            1,819 
 
                                            ========            ========         ======== 
 
Equity 
 
Share Capital                                  3,656               3,546            3,656 
 
Share premium account                          5,244               5,244            5,244 
 
Other reserves                                   146                 146              146 
 
Retained earnings                            (7,457)             (7,025)          (7,227) 
 
                                            ========            ========         ======== 
 
Total equity                                   1,589               1,911            1,819 
 
                                            ========            ========         ======== 
 
 
 
 
                             CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
 
                              FOR THE SIX MONTHSED 30 SEPTEMBER 2019 
 
                                      Share         Share      Share Options     Retained        Total 
 
                                    Capital       Premium           Reserves     Earnings       Equity 
 
                                      GBP'000         GBP'000              GBP'000        GBP'000        GBP'000 
 
Balance at 31 March 2018              3,546         5,244                146      (7,115)        1,821 
 
Adjustment for adoption of                -             -                  -        (117)        (117) 
IFRS15 
 
                                -----------  ------------    --------------- ------------  ----------- 
 
Balance at 1 April 2018               3,546         5,244                146      (7,232)        1,704 
restated 
 
Restated Profit for the period            -             -                  -          207          207 
 
                                -----------   -----------        -----------  -----------  ----------- 
 
Total comprehensive profit for            -             -                  -          207          207 
the period 
 
                                    =======       =======           ========      =======       ====== 
 
Balance at 30 September 2018          3,546         5,244                146      (7,025)        1,911 
restated 
 
                                    =======       =======           ========      =======       ====== 
 
Loss for the period                       -             -                  -        (201)        (201) 
 
                               ------------  ------------ ------------------ ------------ ------------ 
 
Total comprehensive loss for              -             -                  -        (201)        (201) 
the period 
 
Issue of share capital                  110             -                  -            -          110 
 
Share issue costs                         -             -                  -          (1)          (1) 
 
                                    =======      ========          =========      =======       ====== 
 
Balance at 31 March 2019              3,656         5,244                146      (7,227)        1,819 
 
                                    =======      ========          =========      =======       ====== 
 
Adjustment for adoption of                -             -                  -          (2)          (2) 
IFRS 16 
 
                                    =======      ========          =========      =======       ====== 
 
Balance at 1 April 2019               3,656         5,244                146      (7,229)        1,817 
restated 
 
                                    =======      ========          =========      =======       ====== 
 
Loss for the period                       -             -                  -        (228)        (228) 
 
                               ------------ -------------   ---------------- ------------  ----------- 
 
Total comprehensive loss for              -             -                  -        (228)        (228) 
the period 
 
                                    =======      ========          =========      =======       ====== 
 
Balance at 30 September 2019          3,656         5,244                146      (7,457)        1,589 
 
                                    =======      ========          =========      =======       ====== 
 
 
 
                         CONSOLIDATED STATEMENT OF CASH FLOWS 
 
                      FOR THE SIX MONTHSED 30 SEPTEMBER 2019 
 
                                                       Unaudited    Restated    Audited 
                                                                   Unaudited 
 
                                                      Six months  Six months  12 months 
 
                                               Note    30-Sep-19   30-Sep-18  31-Mar-19 
 
                                                           GBP'000       GBP'000      GBP'000 
 
Net cash generated from operating activities     3            14         138        117 
 
Taxation                                                       -           -          - 
 
                                                      ----------  ---------- ---------- 
 
Net cash generated from operating activities                  14         138        117 
 
Cash flows used in investing activities 
 
Purchase of plant and machinery                             (17)        (13)       (30) 
 
Purchase of leasehold improvements                             -         (3)          - 
 
                                                      ----------  ---------- ---------- 
 
Net cash used in investing activities                       (17)        (16)       (30) 
 
Cash flow from financing activities 
 
Other loans                                                 (34)        (14)       (19) 
 
Shareholder loan receipts                                    317           -        385 
 
Shareholder loan repayments                                (206)        (52)      (330) 
 
Interest paid                                               (40)        (27)       (58) 
 
Proceeds of share issue                                        -           -        110 
 
Share issue costs                                              -           -        (1) 
 
                                                      ----------  ---------- ---------- 
 
Net cash used in financing activities                         37        (93)         87 
 
                                                      ----------   --------- ---------- 
 
Net increase in cash and cash equivalents                     34          29        174 
 
                                                      ----------  ---------- ---------- 
 
Cash and cash equivalents at beginning of                  (179)       (353)      (353) 
period / year 
 
                                                         =======     =======    ======= 
 
Cash and cash equivalents at end of period /     4         (145)       (324)      (179) 
year 
 
                                                         =======     =======    ======= 
 
 
 
NOTES TO THE FINANCIAL INFORMATION 
 
1.              Basis of preparation 
 
The Group's annual financial statements are prepared in accordance with 
International Financial Reporting Standards (IFRS) as adopted for use in the EU 
applied in accordance with the provisions of the Companies Act 2006 applicable 
to companies preparing financial statements under IFRS. 
 
Accordingly, the consolidated half-yearly financial information in this report 
has been prepared using accounting policies consistent with IFRS. IFRS is 
subject to amendment and interpretation by the International Accounting 
Standards Board (IASB) and the IFRS Interpretations Committee and there is an 
ongoing process of review and endorsement by the European Commission. The 
financial information has been prepared on the basis of IFRS that the Directors 
expect to be applicable as at 31 March 2020. 
 
IFRS15 was implemented for the first time for the Financial Year Ended 31 March 
2019 and the resulting impact was an increase in revenue of GBP317,000 and an 
increase in costs of GBP200,000 leading to an additional profit of GBP117,000 for 
the period. These adjustments have been reflected in the restated comparative 
results for the period ended 30 September 2018. 
 
The Board has considered the impact of IFRS16 when drawing up this financial 
information, and has made the necessary adjustments. 
 
This interim report does not comply with IAS 34 "Interim Financial Reporting" 
(as adopted by the European Union), as permissible under the AIM Rules for 
Companies. 
 
Going Concern 
 
The Directors have considered financial projections based upon known future 
invoicing, existing contracts, pipeline of new business and the number of 
opportunities it is currently working on, particularly in the Retail sector. In 
addition, these forecasts have been considered in the light of the ongoing 
challenges in the global economy, previous experience of the markets in which 
the Group operates and the seasonal nature of those markets, as well as the 
likely impact of ongoing reductions to public sector spending. These forecasts 
indicate that the Group will generate sufficient cash resources to meet its 
liabilities as they fall due over the next 12-month period from the date of 
this interim announcement. 
 
As a result the Directors consider that it is appropriate to draw up the 
financial information on a going concern basis. Accordingly, no adjustments 
have been made to reflect any write downs or provisions that would be necessary 
should the Group prove not to be a going concern, including further provisions 
for impairment to goodwill and investments in Group companies. 
 
Non-statutory accounts 
 
The financial information contained in this document does not constitute 
statutory accounts within the meaning of Section 434 of the Companies Act 2006 
("the Act"). 
 
The statutory accounts for the year ended 31 March 2019 have been filed with 
the Registrar of Companies. The report of the auditors on those statutory 
accounts was unqualified, did not draw attention to any matters by way of 
emphasis and did not contain a statement under Section 498(2) or (3) of the 
Act. The financial information for the six months ended 30 September 2019 and 
30 September 2018 is not audited. 
 
2.              Earnings per share 
 
Basic earnings per share is calculated by dividing the loss attributed to 
ordinary shareholders of GBP228,000 (restated 2018: profit of GBP207,000) by the 
weighted average number of shares during the period of 1,396,425,774 (2018: 
1,286,425,774). The diluted earnings per share is identical to that used for 
basic earnings per share as the warrants or share options are anti-dilutive. 
 
 
 
 
 
 
 
 
 
3.       Cash generated from/(used in) 
operations 
 
                                                     Unaudited     Restated      Audited 
                                                                  Unaudited 
 
                                                    Six months   Six months    12 months 
 
                                                     30-Sep-19    30-Sep-18    31-Mar-19 
 
                                                         GBP'000        GBP'000        GBP'000 
 
Profit/(Loss) after tax                                  (228)          207            6 
 
Depreciation/amortisation charge                            40           10           40 
 
Finance Costs                                               48           56           83 
 
(Increase)/Decrease in inventories                        (29)          118          148 
 
Increase/(Decrease) in payables                             57        (509)        (776) 
 
Decrease in receivables                                    126          256          616 
 
                                                      ========     ========     ======== 
 
Net cash generated from operating                           14          138          117 
activities 
 
                                                      ========     ========     ======== 
 
4.              Cash and cash 
equivalents 
 
                                                     Unaudited                   Audited 
                                                                  Unaudited 
 
                                                    Six months   Six months    12 months 
 
                                                     30-Sep-19    30-Sep-18    31-Mar-19 
 
                                                         GBP'000        GBP'000        GBP'000 
 
Cash held at bank                                            -           12           24 
 
Invoice discounting facility                             (139)        (336)        (203) 
 
Bank overdrafts                                            (6)            -            - 
 
                                                      ========     ========     ======== 
 
                                                         (145)        (324)        (179) 
 
                                                      ========     ========     ======== 
 
5.              Subsequent events 
 
Subsequent to 30 September 2019, trade has improved and both October and 
November 2019 management accounts were profitable at consolidated level. Profit 
for the two months was GBP44,000 after tax, based on revenue of GBP709,000 during 
those two months. 
 
6.              IFRS 16 Adoption 
 
For the accounting period beginning 1 April 2019, IFRS 16 must be applied for 
the first time. This replaced IAS 17 and governs how Leases must be treated and 
accounted for in the financial statements. 
 
There are two approaches to its adoption, and the Group has chosen to use the 
cumulative catch-up approach. This means that the comparative information 
presented for the year ended 31 March 2019 and for the six months ended 30 
September 2018 has not been restated and presents the Groups' Lease, upon the 
registered office and headquarters in Woking, under IAS 17 for those periods. 
 
The cumulative effect of the implementation of this accounting standard is 
recognised in retained earnings as at 1 April 2019 and shown separately on the 
Consolidated Statement of Changes in Equity. 
 
IFRS 16 seeks to recognise future liabilities associated with Leases on the 
Statement of Financial Position. A corresponding right of use of the asset is 
also recognised on the Statement of Financial Position to capture the economic 
benefits of the Group's right to use the underlying leased asset. 
 
Accounting Policy 
 
The Standard recognises right of use of an asset and the associated lease 
liabilities at the lease commencement date. The liability is calculated as the 
net present value of the lease payments over the lifetime of the lease. This 
calculation uses the discounted interest rate implicit in the lease which is 
not easily established and hence is replaced with the Group's incremental 
borrowing rate. This has been assumed at 10% for the one relevant lease based 
on the Group's other rates of borrowing. 
 
This liability is then measured at amortised cost and increased by the interest 
charge and decreased by lease payments as they are made. 
 
Given that the lease in question for the Group is a 5-year rental lease on 
premises with no break clause, the lease term used for all calculations is 5 
years. 
 
On transition to IFRS 16 the right of use asset is calculated retrospectively 
using the Group's incremental borrowing rate. The asset is then depreciated on 
a straight-line basis over the 5 years of the lease. 
 
The impact of IFRS 16 on this financial information is a net decrease in equity 
of GBP2,000. 
 
 
 
Due to the nature of the right of use asset, this is presented in "Property, 
Plant and Equipment", and was equal to GBP179,000 at 30 September 2019. 
 
Lease liabilities are presented within Financial Liabilities on the Statement 
of Financial Position at 30 September 2019 and was equal to GBP184,000. 
 
7.          Distribution of the Half-Yearly 
Report 
 
Copies of the Half-yearly Report will be available to the public from the 
Company's website, www.mediazest.com, and from the Company Secretary at the 
Company's registered address at Unit 9, Woking Business Park, Albert Drive, 
Woking, Surrey, GU21 5JY. 
 
Enquiries: 
 
MediaZest Plc                                         0845 207 9378 
Geoff Robertson 
Chief Executive Officer 
 
SP Angel Corporate Finance LLP                        020 3470 0470 
Nominated Adviser 
David Hignell / Stephen Wong 
 
Hybridan LLP                                          020 3764 2341 
Broker 
Claire Noyce 
 
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. 
 
 
 
 
END 
 

(END) Dow Jones Newswires

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