12 November 2020
MediaZest Plc
("MediaZest", the "Company” or the
“Group”; AIM: MDZ)
Trading
Update
MediaZest (AIM: MDZ), the creative audio-visual company, hereby
provides shareholders with an update on current trading and the
impact of the second UK “lockdown” as a result of the Covid-19
Pandemic.
Post the initial UK “lockdown”, trading has continued to be
encouraging. Although client work continues at a slower pace than
in the run up to March 2020, new
projects are being pitched for on a regular basis, and several
mandates have been won in recent weeks. Ongoing contractual income
remains robust and the renewal rate of such recurring revenue
streams has been strong.
The differing terms of the second “lockdown” mean that many
projects continue to be delivered, with additional safety and
social distancing measures. In light of this the Board does not
expect the impact of this second lockdown to be as negative as the
first, although it will may have an adverse effect on trading. The
Group will also continue to use Government support schemes as
appropriate where work cannot continue, and cost reduction measures
remain in place where possible to mitigate the impact of such
restrictions.
Ongoing roll out projects have restarted and are continuing
during November and beyond. Supplemental to this steady flow of
work, both existing and potential new clients are beginning to look
at new longer-term programmes and the Company is currently pitching
for several of these which if won, will fall in 2021 and
beyond.
MediaZest’s strategy continues to be to grow the recurring
revenue streams and regular project workflows to generate
consistent Group profitability, with tight cost control during this
difficult period. Those regular incomes are supplemented with
larger scale projects which can add significant growth to the
Company.
As previously announced, the Group extended its most recent
accounting year to become an 18-month period to 30 September 2020. The financial results for this
period, including adoption of the new IFRS 16 and recognition of
the successful placement of new Convertible Loan Notes in
August 2020 and the associated
additional liquidity, are currently being prepared. The Board
expects to provide some guidance on these results before the end of
2020, with the release of full audited accounts and details of the
next MediaZest AGM in early 2021.
Geoff Robertson, MediaZest’s
CEO said: “We are encouraged by the robustness of project work
at this current time given the circumstances, but remain mindful of
the challenges ahead. We believe that in the medium term the core
markets in which the Company operates (Retail, Automotive and
Corporate) will all show accelerated adoption of digital signage
and audio-visual solutions as a by-product of the pandemic. We look
forward to providing shareholders with a further update before the
end of the calendar year.”
This announcement contains inside
information for the purposes of Article 7 of Regulation (EU)
596/2014.
Enquiries: |
|
Geoff Robertson
Chief Executive Officer
MediaZest Plc |
0845 207 9378 |
David Hignell/Adam Cowl
Nominated Adviser
SP Angel Corporate Finance LLP |
020 3470 0470 |
Claire Noyce
Broker
Hybridan LLP |
020 3764 2341 |
|
|
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