28 June
2021
MediaZest Plc
("MediaZest", the
"Company” or “Group"; AIM: MDZ)
Unaudited Interim
Results for the six months ended 31 March
2021
MediaZest, the creative audio-visual
company, announces its unaudited interim results for the six months
ended 31 March 2021 (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 18 month period
ended 30 September 2020.
CHAIRMAN’S
STATEMENT
Introduction
The Board presents the consolidated
unaudited results for the six months ended 31 March 2021 for MediaZest plc and its wholly
owned subsidiary company MediaZest International Ltd (together the
“Group”).
Financial Review
- Revenue for the Period was £846,000, down 42% (2020:
£1,454,000) due to the impact of Covid-19.
- Gross profit was down 38% accordingly to £410,000 (2020:
£656,000).
- Gross margin rose to 48% (2020: 45%).
- Administrative expenses were £459,000, a reduction of 31%
(2020: £667,000).
- EBITDA was a loss of £49,000 (2020: £11,000).
- Net loss for the period after taxation was £160,000 (2020:
£43,000).
- The basic and fully diluted loss per share was 0.0115 pence (2020: loss per share 0.0031 pence).
- Cash in hand at 31 March 2021 was
£16,000 (2020: £16,000).
Operational Review
As highlighted in the Financial
Review above, the unaudited financial results for the six months to
31 March 2021 were adversely affected
by nationwide UK “lockdowns” in response to the ongoing Covid-19
pandemic (the “Pandemic”), by way of comparison with the prior
period.
However, since the end of the
Period, business has improved significantly and the Group is
extremely busy pitching and delivering projects for a wide range of
both existing and new clients.
During December 2020 and January
2021 many clients ceased on-site installation work, with
projects only beginning to recommence from early February 2021 onwards. This had a negative impact
on financial results, particularly in January and February of 2021,
the latter also impacted by the timing of revenue recognition under
IFRS 15.
As noted in recent announcements,
since the beginning of the calendar year the Group has seen a
significant increase in new opportunities and in committed
projects. The timing of these projects themselves and recognition
of the resultant revenue to the Group (in accordance with
accounting standards), has resulted in the benefit of these new
business wins being recognised in the second half of the financial
year rather than during the Period.
In light of the Pandemic, the Group
continued to work hard to keep costs low during the 6 months and
utilised the Government Job Retention Scheme appropriately during
the Period.
Additional financing was not
required and in the post balance sheet period the Group has been
able to repay some shareholder debt using free cashflow from
trading.
Client Work in
the Period
The Group continued to work with
long term clients such as Lululemon Athletica, Pets at Home,
Ted Baker, and Hyundai during the
Period, with new project installations as well as ongoing service
and maintenance contractual work.
New store installations for
Dermologica, Samsung and a number of digital kiosk projects did
also go ahead at the beginning of these 6 months, and again towards
the end of the Period as lockdown measures eased once more.
A number of new clients were added
during the Period with smaller initial projects but the potential
to grow into more significant engagements in the future.
Significant wins being delivered
Post Period included the Vashi Covent Garden project, announced
recently on 18 June and forthcoming new projects with Hyundai and
Samsung.
Gross margins continued to hold up
well reflecting the strong balance towards the Group’s high-quality
managed service offering.
Outlook
It remains difficult to assess the
extent to which the Pandemic will affect the Group’s forthcoming
trading and financial performance as the situation continues to
evolve rapidly with the final stage of ‘unlocking’, which was
scheduled for 21 June, being deferred to 19 July in the light of
recent data.
However, the number of new projects
currently underway or already completed in the second half of the
year has been encouraging and the Board is looking for the Group to
deliver a much improved second half of Financial Year 21.
Recurring revenue streams have been
robust throughout the last 18 months and contracts continue to
extend and grow in many cases. Developing these contracts and
growing opportunities that focus on this type of business has been
a priority in recent years and continues to show success and
generate long term value in the Group.
Performance of the Group over the
second six months and into the next financial year looks
encouraging, subject to the uncertainty within which many
businesses are currently operating.
The Board continues to work on the
assumption that the disruption caused by the Pandemic will have an
impact throughout 2021 and continues to plan accordingly, searching
for new revenue streams whilst managing costs tightly.
Lance O’Neill
Chairman
28 June
2021
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|
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
|
|
FOR THE
SIX MONTHS ENDED 31 MARCH 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
6
months |
6
months |
18
months |
|
|
Notes |
31-Mar-21 |
31-Mar-20 |
30-Sep-20 |
|
|
|
£’000 |
£'000 |
£'000 |
|
Continuing Operations |
|
|
|
|
|
Revenue |
|
846 |
1,454 |
3,068 |
|
Cost of sales |
|
(436) |
(798) |
(1,544) |
|
|
|
------------ |
------------ |
------------ |
|
Gross
profit |
|
410 |
656 |
1,524 |
|
|
|
|
|
|
|
Other
operating income |
|
- |
- |
25 |
|
|
|
|
|
|
|
Administrative expenses before depreciation and amortisation |
|
(459) |
(667) |
(1,735) |
|
|
|
------------ |
------------ |
------------ |
|
|
|
|
|
|
|
EBITDA |
|
(49) |
(11) |
(186) |
|
|
|
|
|
|
|
Administrative expenses – depreciation & amortisation |
|
(38) |
(41) |
(124) |
|
|
|
------------ |
------------ |
------------ |
|
Operating (Loss)/Profit |
|
(87) |
(52) |
(310) |
|
|
|
|
|
|
|
Finance
Costs |
|
(73) |
(31) |
(168) |
|
|
|
------------ |
------------ |
------------ |
|
(Loss)/Profit before taxation |
|
(160) |
(83) |
(478) |
|
|
|
|
|
|
|
Taxation |
|
- |
40 |
30 |
|
|
|
======== |
======== |
======== |
|
(Loss)/Profit for the period and total comprehensive loss/income
for the period attributable to the owners of the parent |
|
(160)
======== |
(43)
======== |
(448)
======== |
|
|
|
|
|
|
|
Earnings/(Loss) per ordinary 0.01p (2020: 0.01p) share |
|
|
|
|
|
Basic |
2 |
(0.0115)p |
(0.0031)p |
(0.0324)p |
|
Diluted |
2 |
(0.0115)p |
(0.0031)p |
(0.0324)p |
|
|
|
|
|
|
|
|
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|
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
|
AS AT 31 MARCH 2021 |
|
|
|
|
|
|
|
|
Unaudited |
Unaudited |
Audited |
|
|
|
As at
31-Mar-21 |
As at
31-Mar-20 |
As at
30-Sep-20 |
|
|
|
£’000 |
£'000 |
£'000 |
|
ASSETS
Non-current assets |
|
|
|
|
Goodwill |
|
2,772 |
2,772 |
2,772 |
|
Owned
Property, plant and equipment |
25 |
54 |
39 |
|
Right-of-use
Property, plant and equipment |
149 |
157 |
171 |
|
|
------------ |
------------ |
------------ |
|
|
|
2,946 |
2,983 |
2,982 |
|
Current
assets |
|
|
|
|
Inventories |
238 |
116 |
93 |
|
Trade and
other receivables |
408 |
548 |
493 |
|
Cash and
cash equivalents |
16 |
16 |
91 |
|
|
------------ |
------------ |
------------ |
|
|
662 |
680 |
677 |
|
|
|
|
|
|
|
TOTAL
ASSETS |
|
3,608 |
3,663 |
3,659 |
|
|
|
======== |
======== |
======== |
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
Shareholders’ Equity |
|
|
|
|
Called up
share capital |
3,656 |
3,656 |
3,656 |
|
Share
premium |
5,244 |
5,244 |
5,244 |
|
Share
option reserve |
146 |
146 |
146 |
|
Retained
earnings |
(7,837) |
(7,500) |
(7,677) |
|
|
------------ |
------------ |
------------ |
|
TOTAL
EQUITY |
|
1,209 |
1,546 |
1,369 |
|
|
|
======== |
======== |
======== |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Financial
liabilities – borrowings: |
|
|
|
|
|
Interest bearing lease liabilities |
|
136 |
118 |
157 |
|
Other interest bearing loans and
borrowings |
|
182 |
- |
176 |
|
|
|
------------ |
------------ |
------------ |
|
|
|
318 |
118 |
333 |
|
Current
liabilities |
|
|
|
|
|
Trade and
other payables |
|
1,175 |
1,252 |
968 |
|
Financial
liabilities – borrowings: |
|
|
|
|
|
Invoice discounting facility |
|
131 |
183 |
245 |
|
Interest bearing lease liabilities |
|
55 |
54 |
59 |
|
Other interest bearing loans and
borrowings |
|
720 |
510 |
685 |
|
|
|
------------ |
------------ |
------------ |
|
|
|
2,081 |
1,999 |
1,957 |
|
|
|
|
|
|
|
TOTAL
LIABILITIES |
|
2,399 |
2,117 |
2,290 |
|
|
|
======== |
======== |
======== |
|
|
|
|
|
|
|
TOTAL
EQUITY AND LIABILITIES |
3,608 |
3,663 |
3,659 |
|
|
======== |
======== |
======== |
|
|
|
|
|
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|
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE SIX MONTHS ENDED 31 MARCH 2021 |
|
|
|
|
Share |
Share |
Share
Options |
Retained |
Total |
|
Capital |
Premium |
Reserves |
Earnings |
Equity |
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
Balance at 31 March 2019 |
3,656 |
5,244 |
146 |
(7,227) |
1,819 |
|
|
|
|
|
|
Impact of IFRS 16
implementation |
- |
- |
- |
(2) |
(2) |
|
======= |
======== |
========= |
======= |
======= |
Balance at 1 April
2019 restated |
3,656 |
5,244 |
146 |
(7,229) |
1,817 |
|
======= |
======== |
========= |
======= |
======= |
Loss for the year |
- |
- |
- |
(271) |
(271) |
|
----------- |
----------- |
----------- |
----------- |
----------- |
Total comprehensive
loss for the year |
- |
- |
- |
(271) |
(271) |
|
======= |
======== |
========= |
======= |
======= |
Balance at 31 March
2020 |
3,656 |
5,244 |
146 |
(7,500) |
1,546 |
|
======= |
======== |
========= |
======= |
====== |
Loss for the
period |
- |
- |
- |
(177) |
(177) |
|
----------- |
----------- |
----------- |
----------- |
----------- |
Total comprehensive
loss for the period |
- |
- |
- |
(177) |
(177) |
|
======= |
======== |
========= |
======= |
======= |
Balance at 30
September 2020 |
3,656 |
5,244 |
146 |
(7,677) |
1,369 |
|
======= |
======== |
========= |
======= |
======= |
Loss for the
period |
- |
- |
- |
(160) |
(160) |
|
----------- |
----------- |
----------- |
----------- |
----------- |
Total comprehensive
loss for the period |
- |
- |
- |
(160) |
(160) |
|
======= |
======== |
========= |
======= |
======= |
Balance at 31 March
2021 |
3,656 |
5,244 |
146 |
(7,837) |
1,209 |
|
======= |
======== |
========= |
======= |
======= |
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CONSOLIDATED STATEMENT OF CASH FLOWS |
|
|
FOR THE SIX MONTHS ENDED 31 MARCH 2021 |
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|
|
|
|
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|
|
Unaudited |
Unaudited |
Audited |
|
|
|
6
months |
6
months |
18
months |
|
|
Note |
31-Mar-21 |
31-Mar-20 |
30-Sep-20 |
|
|
|
|
£'000 |
£'000 |
|
|
|
|
|
|
|
Net
cash generated from operating activities |
3 |
94 |
(14) |
(73) |
|
|
|
|
|
|
|
Taxation |
|
- |
40 |
30 |
|
|
|
---------- |
---------- |
---------- |
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Net cash
generated from operating activities |
|
94 |
26 |
(43) |
|
|
|
|
|
|
|
Cash
flows used in investing activities |
|
|
|
|
|
Purchase
of plant and machinery |
|
(2) |
8 |
(29) |
|
|
|
---------- |
---------- |
---------- |
|
Net
cash used in investing activities |
|
(2) |
8 |
(29) |
|
|
|
|
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|
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Cash
flow from financing activities |
|
|
|
|
|
Other
loans |
|
(5) |
19 |
(16) |
|
Bounce
back loan |
|
- |
- |
50 |
|
Lease
liability payments |
|
(20) |
(46) |
(47) |
|
Shareholder loan receipts |
|
- |
218 |
718 |
|
Shareholder loan repayments |
|
- |
(219) |
(515) |
|
Interest
paid |
|
(28) |
(28) |
(93) |
|
|
|
---------- |
---------- |
---------- |
|
Net
cash (used in)/ generated from financing activities |
|
(53) |
(56) |
97 |
|
|
|
|
|
|
|
|
|
---------- |
---------- |
---------- |
|
Net
increase in cash and cash equivalents |
|
39 |
(22) |
25 |
|
|
|
---------- |
---------- |
---------- |
|
|
|
|
|
|
|
Cash and
cash equivalents at beginning of year |
|
(154) |
(145) |
(179) |
|
|
|
======= |
======= |
======= |
|
Cash
and cash equivalents at end of year |
4 |
(115) |
(167) |
(154) |
|
|
|
======= |
======= |
======= |
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NOTES TO THE
FINANCIAL INFORMATION |
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1.
Basis of Preparation |
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The
Group’s annual financial statements are prepared in accordance with
international accounting standards in conformity with the
requirements of the Companies Act 2006. |
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Accordingly, the consolidated six-month financial information in
this report has been prepared using accounting policies consistent
with international accounting standards. The international
accounting standards are subject to amendment and interpretation by
the International Accounting Standards Board (IASB). The financial
information has been prepared on the basis of international
accounting standards expected to be applicable as at 30 September
2021. |
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This
interim report does not comply with IAS 34 “Interim Financial
Reporting” as permissible under the AIM Rules for Companies. |
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Going
Concern |
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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. 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 ongoing impact of the Covid-19
pandemic. 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. |
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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. |
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Non-statutory
accounts |
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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”). |
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The
statutory accounts for the 18 months ended 30 September 2020 have
been filed with the Registrar of Companies. The report of the
auditors on those statutory accounts was unqualified, did
include a reference to which the auditor drew attention by way of
emphasis without qualifying their report in respect of going
concern and did not contain a statement under section 498(2) or
498(3) of the Companies Act 2006.
The financial information for the six months to 31 March 2021 has
not been audited. |
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2.
Earnings per share |
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Basic
earnings per share is calculated by dividing the loss attributed to
ordinary shareholders of £160,000 (2020: £43,000) by the weighted
average number of shares during the period of 1,396,425,774 (2020:
1,396,425,774). The diluted earnings per share is identical to that
used for basic earnings per share as the warrants or share options
are anti-dilutive. |
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3. Cash generated from operations |
|
|
|
|
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Unaudited |
Unaudited |
Audited |
|
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|
6
months |
6
months |
18
months |
|
|
|
31-Mar-21 |
31-Mar-20 |
30-Sep-20 |
|
|
|
|
£'000 |
£'000 |
|
Loss after
tax |
|
(160) |
(50) |
(478) |
|
Taxation |
|
- |
- |
30 |
|
Depreciation/amortisation charge |
|
38 |
41 |
125 |
|
Finance
Costs |
|
26 |
38 |
73 |
|
Increase
in inventories |
|
(145) |
(18) |
(24) |
|
Increase
in payables |
|
252 |
169 |
242 |
|
Decrease/(increase) in receivables |
|
83 |
(194) |
(41) |
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|
======== |
======== |
======== |
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Net
cash generated from/(absorbed by) operating activities |
|
94 |
(14) |
(73) |
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======== |
======== |
======== |
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4. Cash and cash equivalents |
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Unaudited |
Unaudited |
Audited |
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|
6
months |
6
months |
18
months |
|
|
|
31-Mar-21 |
31-Mar-20 |
30-Sep-20 |
|
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|
£'000 |
£'000 |
£'000 |
|
Cash held
at bank |
|
16 |
16 |
91 |
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Invoice
discounting facility |
|
(131) |
(183) |
(245) |
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======== |
======== |
======== |
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|
(115) |
(167) |
(154) |
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======== |
======== |
======== |
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5. Subsequent events |
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Subsequent to 31 March 2021, the Government’s “roadmap”
out of “lockdown” has seen the re-opening of many of the Group’s
clients’ stores, especially in the retail sector, and an upswing in
new projects coming through the pipeline, with the expectation that
the second half of the financial year ending 30 September 2021 will
show significant improvement.
The repayment of the Group’s Bounce Back Loan of £50,000 under the
Government’s scheme, is due to commence from June 2021 at £887 per
month. Interest on the £150,000 Convertible Loan Note instrument,
secured in August 2020 to provide additional working capital for
the Group, is being paid quarterly at an annual rate of 7%.
In the post balance sheet period the Group has been able to repay
some shareholder debt using free cashflow from trading.
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6.
Distribution of the Interim Report |
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Copies of the Interim 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.
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.
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 |
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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
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