MediaZest losses widen in first half as second lockdown bites

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Audiovisual creation company MediaZest on Monday announced a 42% drop in earnings in its interim results, to £ 0.85million, which it attributed to the continued impact of the Covid-19 pandemic.

The listed company said its gross margin fell 38% year-on-year for the six-month period ended March 31, to £ 0.41million, although its gross margin improved to 48% from 45% .

Administrative costs totaled £ 0.46million, 31% lower than the same period a year earlier.

MediaZest’s first half EBITDA loss widened to £ 49,000 from £ 11,000, and its net loss after tax was £ 0.16m, compared to £ 43,000 in the prior period.

Basic and fully diluted losses per share amounted to 0.0115p, compared to losses of 0.0031p per share in the first half of fiscal 2020.

Cash on hand at the end of the period on March 31 stood at £ 16,000, exactly in line with the previous year.

Operationally, MediaZest said the period had been affected by lockdowns across the UK in response to the ongoing Covid-19 pandemic, noting that in December and January a number of customers ceased installation work on site, with projects only starting to restart from early February.

This had a negative impact on financial results, particularly in January and February, the latter month also being affected by the timing of revenue recognition under IFRS 15.

The company said it continued to work with long-term customers including Lululemon Athletica, Pets at Home, Ted Baker and Hyundai during the first half of the year, with new project facilities as well as contracted service and maintenance work in progress. Classes.

New store installations for Dermologica, Samsung and a number of digital kiosk projects also continued into the start of the first half of the year and then again towards the end of the period as foreclosure measures eased again.

A number of new clients were added during the period, with smaller initial projects but the potential to grow into larger engagements in the future, the board said.

“It remains difficult to assess to what extent the pandemic will affect the group’s future business and financial performance, as the situation continues to evolve rapidly with the final stage of the ‘unlock’, which was scheduled for June 21, being postponed. as of July 19. in light of recent data, ”said President Lance O’Neill.

“However, the number of new projects currently underway or already completed in the second half of the year is encouraging, and the board of directors expects the group to deliver a significantly improved second half of 2021.

“Recurring revenue streams have been strong over the past 18 months and contracts continue to expand and grow in many cases.”

O’Neill said developing these contracts and growing opportunities focused on this type of business was a priority, which has continued to show success and generate long-term value for the group.

“The group’s performance in the second half of the year and into the next financial year looks encouraging, subject to the uncertainty in which many companies are currently operating.

“The board continues to work assuming that the disruption caused by the pandemic will have an impact throughout 2021 and continues to plan accordingly, seeking new sources of revenue while tightly managing costs. “

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