TIDMZIN
RNS Number : 7196N
Zinc Media Group PLC
27 September 2023
27 September 2023
Zinc Media Group plc
("Zinc Media", the "Group" or the "Company")
Interim results for the six months ended 30 June 2023
Zinc Media Group plc (AIM: ZIN) , the award-winning television,
brand and audio production group, is pleased to announce its
unaudited interim results for the six months to 30 June 2023 ("H1
2023").
Headlines
The Group is pleased to report excellent progress in H1 2023 and
continues to trade in line with market expectations for the current
financial year. The first half of 2023 includes the following
highlights:
-- Revenue of GBP18.1m (H1 2022: GBP10.8m), an increase of 68% year-on-year.
o Organic revenue growth (i.e. all businesses excluding The
Edge) of 12% and a strong customer base providing continuing high
net revenue retention
o Growth in both TV and Content Production revenue
o The Edge continues to perform ahead of acquisition
expectations
-- Adjusted EBITDA(1) profit of GBP0.2m compared to an Adjusted
EBITDA profit of GBP0.1m in the whole prior financial year (H1
2022: loss of GBP0.6m).
-- Gross margins in the period were significantly up at 41% (H1 2022: 33%).
-- Cash of GBP5.8m at 30 June 2023 is GBP2.2m higher than at 31
December 2022 due to working capital inflows.
-- As at 25 September 2023, total revenue won and expected to be
recognised in FY23 is GBP35m. This is an increase of GBP4m since
the last trading update in July 2023 and an improvement of GBP8m
compared to the same point in 2022 in relation to that financial
year.
-- With GBP35m of revenue already won and expected to be
recognised this year, revenue for the whole year will significantly
exceed the GBP30m of revenue generated in FY22.
-- The Group's pipeline remains strong with a further GBP7m of
revenue that can be recognised in FY23 in highly advanced
discussions.
-- Loss before tax in the period of GBP1.6m (H1 2022: GBP1.8m)
is mainly driven by costs relating to the acquisition of The Edge
(revaluation of deferred consideration due to The Edge's strong
performance, amortisation, unwinding of discounted deferred
consideration), depreciation and finance costs resulting from The
Edge being in the Group this period, plus depreciation and finance
costs.
Operational Highlights
-- The Group was awarded "Production Company of the Year" at the
prestigious New York Festival Film and Television Awards.
-- The Group produced a number of highly acclaimed documentaries
that led the news agenda and got the nation talking including:
o Making global headlines with the documentary Putin vs The
West, which was one of the most watched programmes on BBC
iPlayer.
o Bowelbabe: In Her Own Words for the BBC, which details the
extraordinary last five years of cancer campaigner Dame Deborah
James' life, received national press coverage, was on the front
page of the Radio Times and has been nominated for a Grierson
award.
o Gender Wars , exploring the issue of transgender women's
rights, was made for Channel 4 as part of its remit to make agenda
setting programmes which tackle contentious issues.
-- The Group won its largest ever television commission in a
two-year deal worth over GBP7m. The commission is from Channel 5
for 136 hours of the hit show Bargain Loving Brits.
-- The Group produced its biggest ever digital branded content
commission Big in America with Alex Polizzi. It was commissioned by
the Department for Business & Trade and is being broadcast on
LinkedIn.
-- The Group has partnered with Idris Elba to produce Paid in
Full: The Battle for Payback (working title) for broadcasters CBC
(Canadian Broadcasting Corporation) and the BBC, examining the
systematic exploitation of black artists by the music industry.
-- The Group's television label Atomic Television, only launched
in January 2023, won its first commission with a substantial
contract worth over GBP1m for an international blue-chip
broadcaster.
Outlook
-- The recent period of new business conversion underpins the
Board's confidence in meeting market expectations for the financial
year, including substantially increased Adjusted EBITDA
profitability in the second half of the year.
-- The Edge is performing ahead of acquisition expectations and
its integration is progressing well: cross-divisional business
development opportunities have been identified and the co-location
with Zinc's other London businesses is complete which will enable
cost savings and further synergies.
-- The Group has a strong pipeline of potential new business for
2024 and has GBP11m of revenue already won and expected to be
recognised in FY24. This is GBP5m ahead of revenue won at the same
point last year for recognition in the following year.
Mark Browning, Chief Executive, commented: "We are delighted
with our H1 performance in a challenging content production market.
Our year-on-year increase of this scale bucks the market trend.
This is the result of a robust strategy rooted in organic growth
alongside the acquisition of The Edge. The investments made in the
transformation plan are delivering, every business in the Group is
growing and we are confident of meeting market expectations for the
year."
A copy of the interim results will be made available on the
Company's website , zincmedia.com.
([1]) Adjusted EBITDA is defined as EBITDA before Adjusting
Items comprising share based payment charges, profit/loss on
disposal of fixed assets, reorganisation and restructuring costs,
acquisition costs and change in fair value of contingent
consideration
For further information, please contact:
Zinc Media Group plc +44 (0) 20 7878 2311
Mark Browning, CEO / Will Sawyer, CFO
www.zincmedia.com
Singer Capital Markets (Nominated Adviser and Broker) +44 (0) 20
7496 3000
James Moat / George Tzimas / Alex Emslie
IFC Advisory Ltd (Financial PR) +44 (0) 20 3934 6630
Graham Herring / Zach Cohen
CHAIRMAN'S STATEMENT
We are delighted to report a strong set of H1 results. Content
production is typically weighted to H2 so for the Group to report a
small profit at Adjusted EBITDA level, while maintaining investment
for the longer term, is outstanding. It is worth putting this
performance in context. These H1 results are better than the full
year results in 2021. This is the scale of growth we are
reporting.
In our interim results 12 months ago we said we were looking
forward to sustained profitability in 2023 and we are achieving
this. With a positive Adjusted EBITDA in H1, we are confident of at
least delivering in line with market expectations for the full
year, which in turn will be Zinc's strongest financial performance
for many years.
This is a company transformed under this management team. They
came to Zinc with a track record of turning around underperforming
media companies and the results for Zinc are excellent. This
turnaround is all the more impressive given the run of poor market
conditions which included Brexit, Covid, the cost-of-living crisis
and economic downturn impacting on commissioning budgets.
Having invested over the past three years in starting new
businesses to increase our addressable market, we are pleased to
report that both TV and Content Production are increasing their
revenue which is outstanding in this tough market. This year more
of the businesses are positively contributing at Adjusted EBITDA
level, which is demonstrated in the excellent Adjusted EBITDA year
on year performance. Some remain earlier in their investment phase
and therefore do not yet contribute positively to the Group's
profit but they are of strategic importance and we expect them to
do so in time as we continue to invest in their growth. Operating
profit is now in sight and with it sustained cash generation.
Creatively, H1 has also seen Zinc at the top of its game with
our content leading the national conversation with the likes of
Gender Wars for Channel 4, Bowelbabe: In her own words which told
the story of Dame Deborah James, Blackadder: The Lost Episode and
Putin vs The West for the BBC. In production we have Paid in Full:
The Battle for Payback (working title) in partnership with Idris
Elba, The Grand Tour with Rob Rinder and Rylan Clarke and Legends
of Comedy with Lenny Henry. Much of the content produced by The
Edge and Zinc Communicate is confidential to those clients we work
with, but no less impressive.
Notwithstanding inflationary pressures, the tough content
commissioning market and the macro issues affecting the UK public
markets, the future of Zinc Media Group is looking brighter than
ever. The Group is on course for a period of steady organic growth
and sustainable profitability, with the Board focused on providing
value to shareholders.
The Board would like to thank the management team, employees and
freelancers for their professional and dedicated work, and our
shareholders for their continued support.
Christopher Satterthwaite
Chairman
CEO'S REPORT
CURRENT TRADING, STRATEGY AND MARKET OUTLOOK
Trading in the first six months of the year has been excellent
with organic revenues increasing 12% to GBP12.1m (H1 2022:
GBP10.8m), pushing total H1 revenue to GBP18.1m including The Edge,
which was acquired in H2 2022. This excellent performance sees the
Group report Adjusted EBITDA profit of GBP0.2m compared to a H1
2022 loss of GBP0.6m. For further context the H1 2021 loss was
GBP1.1m, which demonstrates the transformation within the
Group.
Despite significant market headwinds in the UK, the FY23
position remains strong with total revenue won and expected to be
recognised in this financial year of GBP35m (as at 25th September).
This is an increase of GBP4m since the last trading update in July
2023 and an improvement of GBP8m compared to the same point in 2022
in relation to that financial year. This figure already exceeds the
GBP30m of revenue generated in the whole of FY22 and with GBP7m of
revenue at a highly advanced stage we expect further revenue to be
won and recognised this year.
The content commissioning market remains poor, particularly
within the UK, but the Group is trading strongly with GBP11m of
revenue already won and expected to be recognised in FY24, and this
is supported by a healthy pipeline. For context, at this point in
2022 there was GBP6m booked for FY23.
These financial results demonstrate the effectiveness of the
transformation plan enacted in 2019. Our strategy is anchored in
investment in organic growth, supplemented by strategic
acquisitions, with the aim of delivering a profitable and cash
generative content creation group of significant scale listed on
the UK public market. Despite unprecedented headwinds caused by
Brexit, Covid and more recently inflation and the cost-of-living
crisis, the Group is delivering to plan and trading in line with
market expectations.
Zinc Media Group now comprises 12 businesses, of which 8 are new
since 2020. All are united by a reputation as a trusted partner
delivering the highest quality content to our range of
international and blue-chip clients in either television production
or production for brands and businesses. All Zinc businesses
benefit from a shared platform that offers a wide array of
resources, including post-production facilities, cutting-edge
broadcast technology, financial services, human resources support,
public relations, marketing expertise, and IT assistance.
Additionally, some of the services available through Zinc's
platform are now being made accessible to third-party production
companies as a means of generating revenue.
The first six months of 2023 have seen a number of creative
highlights and further new business launches in the Group.
Our television labels continue to produce some of the UK's most
talked about television. H1 2023 has been outstanding for Zinc
companies. In January Putin vs The West made global headlines. This
was closely followed by Bowelbabe: In Her Own Words, which told the
story of cancer campaigner Dame Deborah James, and was featured on
the front cover of The Radio Times. Gender Wars for Channel Four
sparked nationwide debate as it skilfully explored the complex
issue of trans-gender rights. Gold commissioned Blackadder: The
Lost Episode which marked the 40th anniversary of the hit show, and
the BBC launched a new daytime series Dr Xand's Con or Cure.
Further successes included the recommission of many Zinc programmes
including the hit Bargain Loving Brits in the Sun for Channel 5.
The company announced a partnership with Idris Elba to produce a
series investigating the exploitation of Black music artists and a
series with Rylan Clark and Rob Rinder. Tern TV's Belfast based
division delivered another successful series of the daytime series
Critical Incident for BBC ONE and continues to produce the weekly
BBC ONE series Sunday Morning Live.
Zinc Communicate continues to grow steadily in the face of a
difficult advertiser market which is suppressing brand and
marketing spend in the UK. Despite this macro-level context, it
secured the Group's biggest ever digital branded content commission
Big in America with Alex Polizzi. This was commissioned by the
Department for Business & Trade and is being broadcast on
LinkedIn. This piece of work demonstrates the power of the wider
Group as this was pitched and developed by Zinc Communicate but
produced by Tern TV. Zinc Communicate's documentary series The
Future of Food, produced in partnership with the World Farmers'
Organisation, launches at COP28 in Dubai later this year. Many of
the clients in the Zinc Communicate portfolio of businesses and The
Edge keep the nature of the work confidential. One significant new
venture in H1 was the launch of the Group's first direct to
consumer podcast series, Tony Robinson's Cunningcast. Radio
programmes in H1 included Marvel vs DC for BBC Sounds.
The Edge is performing ahead of acquisition expectations. H2 is
typically its strongest half of the year, driven by activity in the
Middle East. Integration is progressing well with the company now
co-located with Zinc's other London based businesses.
Cross-divisional business development opportunities have been
identified and property cost savings will start to be realised from
H2 2023.
Despite the challenging wider market, the demand for high
quality television and content for brands and businesses remains
strong, especially in markets outside the UK, where Zinc has
diversified in recent years and is further enhanced by the
acquisition of The Edge. Broadcasters, platforms, media owners and
brands continue to see content as a differentiator with their
consumers. Zinc Media Group now produces for all these markets and,
while growing, still maintains a relatively small market share. The
Group therefore remains confident of delivering further organic
growth and profitability in the period ahead.
Mark Browning
Chief Executive Officer
CFO'S REPORT
INCOME STATEMENT
Group revenues in the reporting period were up by 68%
year-on-year to GBP18.1m (H1 2022: GBP10.8m). TV revenues have
grown by 20% to GBP11.0m (H1 2022: GBP9.1m), driven by strong
performance from the Red Sauce, Supercollider and Rex labels that
have only launched in the last few years, plus a strong H1 from
Tern. Content Production revenue has grown by 331% to GBP7.1m (H1
2022: GBP1.6m) which is driven by the acquisition of The Edge in H2
2022 .
Gross margins in the period were 41% (H1 2022: 33%), with the
growth attributable to The Edge joining the Group which produces
content at higher gross margins than traditionally achieved in
television. Despite downward pricing and upward cost pressures,
gross margins in the TV and Zinc Communicate businesses have been
maintained at the same levels as in FY22.
Operating expenses have risen by GBP3.3m to GBP8.7m, a 65%
increase on the prior year, which is slightly lower than the
Group's revenue growth and is a result of the acquisition of The
Edge and continued investment for growth in Zinc Communicate and
the new Atomic label in television. Finance costs have risen from
GBP0.2m to GBP0.6m due to the unwinding of the discounted deferred
consideration in relation to The Edge acquisition and the interest
rate on the Group's long-term debt having increased.
Improved profitability is anticipated in H2 2023 as television
production is typically weighted to the summer and autumn months.
This is in line with market expectations.
Earnings per share
Basic and diluted loss per share in the period was 7.44p (H1
2022: 10.48p).
Dividend
No dividend is proposed. The Board considers the Group's
investment plans, financial position and business performance in
determining when to pay a dividend.
STATEMENT OF FINANCIAL POSITION
Asset s
Cash at the end of June 2023 was GBP5.8m, having increased by
GBP2.2m during the period as a result of working capital
improvements.
As at 22 September the Group's cash position was GBP5.7m.
Equity and Liabilities
The GBP2.6m increase in equity and liabilities results from the
loss for the period being offset by a GBP4.1m increase in trade and
other payables, largely due to an increase in contract liabilities
resulting from cash received up front from customers, which will
unwind in future periods.
The Group had an outstanding balance on long-term debt of
GBP3.5m as at 30 June 2023 which has remained unchanged (2022:
GBP3.5m) . The Directors believe the Group has strong shareholder
support, evidenced by shareholders investing GBP5.0m in new equity
last year to support the acquisition of The Edge. The long-term
debt holders are also major shareholders who own 42% of the Group's
shares, and the debt has no financial covenants.
Will Sawyer
Chief Financial Officer
Zinc Media Group plc consolidated income statement
For the six months ended 30 June 2023
Unaudited Unaudited Audited
Half Year Half Year
to to Year to
30 June 30 June 31 December
2023 2022 2022
Note GBP'000 GBP'000 GBP'000
------------------------------ ----- ------------ ---------- ------------
Revenue 3 18,072 10,775 30,083
Cost of sales (10,636) (7,263) (19,880)
------------------------------ ----- ------------ ---------- ------------
Gross Profit 7,436 3,512 10,203
Operating expenses (8,435) (5,118) (13,083)
Operating loss (999) (1,606) (2,880)
------------------------------ ----- ------------ ---------- ------------
Analysed as:
Adjusted EBITDA 157 (645) 75
Depreciation (760) (385) (947)
Amortisation (231) (352) (715)
Adjusting Items 4 (165) (224) (1,293)
Operating Loss (999) (1,606) (2,880)
------------------------------ ----- ------------ ---------- ------------
Finance costs (584) (154) (390)
Finance income 2 - 1
------------------------------ ----- ------------ ---------- ------------
Loss before tax (1,581) (1,760) (3,269)
Taxation (debit)/credit (35) 63 987
Loss for the period (1,616) (1,697) (2,282)
Attributable to:
Equity holders (1,623) (1,701) (2,297)
Non-controlling interest 7 4 15
Retained loss for the period (1,616) (1,697) (2,282)
------------------------------ ----- ------------ ---------- ------------
Earnings per share
Basic Loss per Share 5 (7.44)p (10.48)p (12.43)p
Diluted Loss per Share 5 (7.44)p (10.48)p (12.43)p
------------------------------ ----- ------------ ---------- ------------
Zinc Media Group plc consolidated statement of financial position
As at 30 June 2023
Unaudited Unaudited Audited
30 June 30 June 31 December
2023 2022 2022
Note GBP'000 GBP'000 GBP'000
------------------------------- ----- ---------- ---------- --------------
Assets
Non-current assets
Goodwill and intangible
assets 6 7,451 3,464 7,671
Property, plant and equipment 7 1,126 850 1,056
Right-of-use assets 9 707 943 1,084
------------------------------- ----- ---------- ---------- --------------
9,284 5,257 9,811
------------------------------- ----- ---------- ---------- --------------
Current assets
Inventories 299 63 73
Trade and other receivables 8 11,350 6,327 10,591
Cash and cash equivalents 5,777 2,596 3,632
17,426 8,986 14,296
------------------------------- ----- ---------- ---------- --------------
Total assets 26,710 14,243 24,107
------------------------------- ----- ---------- ---------- --------------
Equity and liabilities
Shareholders' equity
Called up share capital 12 27 20 27
Share premium account 9,546 4,785 9,546
Merger reserve 558 27 457
Share Based payment reserve 566 369 566
Retained earnings (5,276) (3,087) (3,653)
------------------------------- ----- ---------- ---------- --------------
Total equity attributable
to equity holders of the
parent 5,421 2,114 6,943
Non-controlling interests 23 28 16
------------------------------- ----- ---------- ---------- --------------
Total Equity 5,444 2,142 6,959
Liabilities
Non-current
Borrowings 3,480 3,471 3,490
Provisions 11 371 250 242
Lease liabilities 9 164 530 352
Trade and other payables 2,643 128 2,476
6,658 4,379 6,560
------------------------------- ----- ---------- ---------- --------------
Current
Trade and other payables 10 13,908 7,300 9,753
Current tax liabilities 237 4 160
Lease liabilities 9 463 418 675
Borrowings - - -
14,608 7,722 10,588
------------------------------- ----- ---------- ---------- --------------
Total liabilities 21,266 12,101 17,148
------------------------------- ----- ---------- ---------- --------------
Total equity and liabilities 26,710 14,243 24,107
------------------------------- ----- ---------- ---------- --------------
Zinc Media Group plc consolidated statement of cash flows
For the six months ended 30 June 2023
Unaudited Unaudited Audited
Half year to Half year to Year to
30 June 30 June 31 December
2023 2022 2022
GBP'000 GBP'000 GBP'000
-------------------------------------------------------------------- ------------- ------------- ------------
Cash flows from operating activities
Loss for the period before tax (1,581) (1,760) (3,269)
Adjustments for:
Depreciation 760 385 947
Amortisation and impairment of intangibles 231 352 715
Finance costs 584 154 390
Finance income (2) - (1)
Share based payment charge 101 92 180
(Gain)/Loss on disposal of assets (14) - -
Adjustment to property leases (129)
Consideration paid in shares - - 30
-------------------------------------------------------------------- ------------- ------------- ------------
(50) (777) (1,008)
Decrease/(increase) in inventories (225) 164 191
(Increase)/decrease in trade and other receivables (720) (2,440) (2,841)
Increase/(decrease) in trade and other payables 4,082 501 (975)
-------------------------------------------------------------------- ------------- ------------- ------------
Cash generated from / (used in) operations 3,087 (2,552) (4,689)
Finance income 2 - 1
Finance cost (23) - (57)
Net cash flows (used in)/generated from operating activities 3,066 (2,552) (4,689)
-------------------------------------------------------------------- ------------- ------------- ------------
Investing activities
Purchase of property, plant and equipment (322) (115) (831)
Disposal of property, plant and equipment 14
Purchase of intangible assets (12) (16) (50)
Acquisition of subsidiary net of cash acquired - - (324)
Net cash flows used in investing activities (320) (131) (1,205)
-------------------------------------------------------------------- ------------- ------------- ------------
Financing activities
Borrowings repaid (203) (111) (265)
Principal elements of lease payments (400) (218) (555)
Issue of ordinary share capital (net of issue costs) - - 4,767
Dividends paid to NCI (23)
Net cash flows generated used in financing activities (603) (329) 3,924
-------------------------------------------------------------------- ------------- ------------- ------------
Net increase/(decrease) in cash and cash equivalents 2,143 (3,012) (1,970)
Translation differences 2 - (6)
Cash and cash equivalents at beginning of period 3,632 5,608 5,608
Cash and cash equivalents at end of period 5,777 2,596 3,632
-------------------------------------------------------------------- ------------- ------------- ------------
Total equity
Share attributable
based to equity
Share Share payment Merger Retained holders of Non-controlling Total
capital premium reserve reserve earnings the parent interest equity
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance at 1
January 2022 20 4,654 155 27 1,158 6,014 12 6,026
---------------- --------- --------- ---------- --------- ---------- ------------- ---------------- --------
Total
comprehensive
income for the
year - - - - (2,297) (2,297) 15 (2,282)
Equity-settled
share-based
payments - - 180 - - 180 - 180
Shares issued
in placing net
of expenses 6 4,761 - - - 4,767 - 4,767
Consideration
paid in shares 1 - - 539 - 540 - 540
Shares issued
in lieu of
fees/Directors
remuneration
paid in shares - - - - 30 30 - 30
Dividends paid - - - - - - (23) (23)
---------------- --------- --------- ---------- --------- ---------- ------------- ---------------- --------
Total
transactions
with owners of
the Company 7 4,761 180 539 (2,267) 3,220 (8) 3,212
---------------- --------- --------- ---------- --------- ---------- ------------- ---------------- --------
Balance at 31
December 2022 27 9,546 457 566 (3,653) 6,943 16 6,959
---------------- --------- --------- ---------- --------- ---------- ------------- ---------------- --------
Balance at 1
January 2022 20 4,785 277 27 (1,386) 3,723 24 3,747
Total
comprehensive
income for the
year - - - - (1,701) (1,701) 4 (1,697)
Equity-settled
share-based
payments - - 92 - - 92 - 92
Total
transactions
with owners of
the Company - - 92 - (1,701) (1,609) 4 (1,605)
---------------- --------- --------- ---------- --------- ---------- ------------- ---------------- --------
Balance at 30
June 2022 20 4,785 369 27 (3,087) 2,114 28 2,142
---------------- --------- --------- ---------- --------- ---------- ------------- ---------------- --------
Balance at 1
January 2023 27 9,546 457 566 (3,653) 6,943 16 6,959
Total
comprehensive
income for the
year - - - - (1,623) (1,623) 7 (1,616)
Equity-settled
share-based
payments - - 101 - - 101 - 101
Total
transactions
with owners of
the Company - - 101 - (1,623) (1,522) 7 (1,515)
---------------- --------- --------- ---------- --------- ---------- ------------- ---------------- --------
Balance at 30
June 2023 27 9,546 558 566 (5,276) 5,421 23 5,444
---------------- --------- --------- ---------- --------- ---------- ------------- ---------------- --------
Notes to the consolidated financial statements
1) GENERAL INFORMATION
The Company is a public limited company incorporated in the
United Kingdom. The address of its registered office is 4th Floor,
Saltire Court, 20 Castle Terrace, Edinburgh EH1 2EN. Its shares are
traded on the AIM Market of the London Stock Exchange plc
(LSE:ZIN).
2) BASIS OF PREPARATION
The interim results for the six months ended 30 June 2023 have
been prepared on the basis of the accounting policies expected to
be used in the 2023 Zinc Media Group plc Annual Report and Accounts
and in accordance with the recognition and measurement requirements
of UK adopted International Accounting Standards (IAS) but does not
include all the disclosures that would be required under IAS and
should be read in conjunction with the accounts for the period
ended 31 December 2022.
The same accounting policies, presentation and methods of
computation are followed in these interim condensed set of
financial statements as have been applied in the Group's latest
annual audited financial statements.
The interim results, which were approved by the Directors on 26
September 2023, are unaudited. The interim results do not
constitute statutory financial statements within the meaning of
section 434 of the Companies Act 2006.
Comparative figures for the 12 months ended 31 December 2022
have been extracted from the statutory accounts for the Group for
that period, which carried an unqualified audit report, did not
include a reference to any matters to which the auditor drew
attention by way of emphasis of matter, did not contain a statement
under section 498(2) or (3) of the Companies Act 2006 and have been
delivered to the Registrar of Companies.
3) SEGMENTAL INFORMATION
The operations of the group are managed in two principal
business divisions that generate revenue: Television and Content
production. These divisions are the basis upon which the management
reports its primary segmental information. The activities
undertaken by the Television segment include the production of
television. The Content Production segment includes brand and
corporate film production, radio and podcast production and
publishing.
Unaudited Unaudited Audited
Half Year to Half Year to Year to
30 Jun 2023 30 Jun 2022 31 Dec 2022
Revenues by Business Division (continuing operations) GBP'000 GBP'000 GBP'000
------------------------------------------------------- ------------- ------------- ------------
Television 11,004 9,135 20,218
Content production 7,068 1,640 9,865
Total 18,072 10,775 30,083
------------------------------------------------------- ------------- ------------- ------------
4) ADJUSTING ITEMS
Adjusting items are presented separately as, due to their nature
or the infrequency of the events giving rise to them, this allows
shareholders to understand better the elements of financial
performance for the period, to facilitate comparison with prior
periods and to assess better the trends of financial
performance.
Unaudited Unaudited Audited
Half Year to Half Year to Year to
30 Jun 2023 30 Jun 2022 31 Dec 2022
GBP'000 GBP'000 GBP'000
---------------------------------------- ------------- ------------- ------------
Reorganisation and restructuring costs (39) (52) (160)
Acquisition costs - - (953)
Share based payment charge (101) (92) (180)
Profit on disposal of assets 14 - -
Other exceptional items (39) (80) -
Total (165) (224) (1,293)
---------------------------------------- ------------- ------------- ------------
5) EARNINGS PER SHARE
Basic loss per share (EPS) for the period equals the loss after
tax from continuing operations attributable to the Company's
ordinary shareholders divided by the weighted average number of
issued ordinary shares.
When the Group makes a profit from continuing operations,
diluted EPS equals the profit attributable to the Company's
ordinary shareholders divided by the diluted weighted average
number of issued ordinary shares. When the Group makes a loss from
continuing operations, diluted EPS equals the loss attributable to
the Company's ordinary shareholders divided by the basic
(undiluted) weighted average number of issued ordinary shares. This
ensures that EPS on losses is shown in full and not diluted by
unexercised share options or awards.
Unaudited Unaudited Audited
Half Year to Half Year to Year to
30 Jun 2023 30 Jun 2022 31 Dec 2022
GBP'000 GBP'000 GBP'000
------------------------------------------------------ ------------- ------------- ------------
Weighted average number of shares used
in basic and diluted earnings per share calculation 21,806,834 16,200,919 18,480,039
Potentially dilutive effect of share options 1,549,458 1,467,502 1,558,184
------------------------------------------------------ ------------- ------------- ------------
Basic Loss per Share (7.44)p (10.48)p (12.43)p
Diluted Loss per Share (7.44)p (10.48)p (12.43)p
------------------------ -------- --------- ---------
6) GOODWILL AND INTANGIBLE ASSETS
Customer Distribution
Goodwill Brands Relationships Software Catalogue Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------- ------------ ---------- ----------------- --------- ------------- ---------
Net Book Value
At 30 June 2023 4,558 1,376 1,482 35 - 7,451
------------------------ ------- ---------- ----------------- --------- ------------- ---------
At 30 June 2022 3,055 64 279 37 29 3,464
At 31 December 2022 4,558 1,462 1,610 41 - 7,671
------------------------ ------- ---------- ----------------- --------- ------------- ---------
7) PROPERTY, PLANT AND EQUIPMENT
Land and buildings Motor Vehicles Office and computer equipment Total
GBP000 GBP000 GBP000 GBP000
------------------------ ------------------- ----------------- ------------------------------ -------
Net book value
------------------------ ------------------- ----------------- ------------------------------ -------
As at 30 June 2023 146 6 974 1,126
------------------------ ------------------- ----------------- ------------------------------ -------
As at 30 June 2022 222 - 628 850
As at 31 December 2022 185 7 864 1,056
------------------------ ------------------- ----------------- ------------------------------ -------
8) TRADE AND OTHER RECEIVABLES
Unaudited Unaudited Audited
30 Jun 2023 30 Jun 2022 31 Dec 2022
GBP'000 GBP'000 GBP'000
------------------------------- ------------ ------------ ------------
Current
Trade receivables 7,520 4,380 6,872
Less provision for impairment (270) (467) (380)
------------------------------- ------------ ------------ ------------
Net trade receivables 7,250 3,913 6,492
Prepayments 566 523 507
Other receivables 787 3 1,047
Deferred tax 41 - -
Contract assets 2,706 1,888 2,545
Total 11,350 6,327 10,591
------------------------------- ------------ ------------ ------------
The carrying amount of trade and other receivables approximates
to their fair value. The creation and release of provision for
impaired receivables have been included in operating expenses in
the income statement.
The maximum exposure to credit risk at the reporting date is the
carrying value of each class of asset above. The Group does not
hold any collateral as security for trade receivables. The Group is
not subject to any significant concentrations of credit risk.
9) LEASES AND RIGHT OF USE ASSETS
Right-of-use assets
Short leasehold land
and buildings Office and computer equipment Total
GBP'000 GBP'000 GBP'000
Balance as at 30 June 2022 867 76 943
Additions - 42 42
Acquired through business combinations 433 - 433
Depreciation (283) (51) (334)
---------------------------------------- --------------------- ------------------------------ --------
Balance as at 31 December 2022 1,017 67 1,084
Additions 129 - 129
Depreciation (458) (48) (506)
---------------------------------------- --------------------- ------------------------------ --------
Balance as at 30 June 2023 688 19 707
Lease liabilities
Lease liabilities are presented in the statement of financial
position as follows:
Unaudited Unaudited Audited
30 Jun 2023 30 Jun 2022 31 Dec 2022
GBP000 GBP000 GBP'000
------------- ------------ ------------ ------------
Current 463 418 675
Non-current 164 530 352
627 948 1,027
------------- ------------ ------------ ------------
10) TRADE AND OTHER PAYABLES
Unaudited Unaudited Audited
30 Jun 2023 30 Jun 2022 31 Dec 2022
GBP'000 GBP'000 GBP'000
---------------------------------- ------------ ------------ ------------
Current
Trade payables 1,892 1,297 1,415
Other payables 40 67 492
Other taxes and social security 1,275 770 1,149
Accruals 3,949 3,296 4,139
Contract liabilities 5,907 1,870 1,895
Contingent consideration payable 845 - 663
Total 13,908 7,300 9,753
---------------------------------- ------------ ------------ ------------
Non-Current
Contingent consideration payable 2,643 - 2,476
---------------------------------- ------------ ------------ ------------
Total 16,551 7,300 12,229
---------------------------------- ------------ ------------ ------------
The Directors consider that the carrying amount of trade and
other payables approximates to their fair value. The Group's
payables are unsecured.
11) PROVISIONS
30
Jun 30 Jun 31 Dec
2023 2022 2022
GBP'000 GBP'000 GBP'000
------------ -------- -------- --------
Provisions 371 250 242
------------ -------- -------- --------
Movement in provisions
GBP'000
At 30 June 2022 250
------------------------------------------------------ ---------------------
Net decrease in provision in the period (8)
At 31 December 2022 242
------------------------------------------------------ ---------------------
Net Increase in provision in the period 129
------------------------------------------------------ ---------------------
At 30 June 2023 371
------------------------------------------------------ ---------------------
The provisions relate to dilapidations on property leases.
12) SHARE CAPITAL
Unaudited Half Year Unaudited Half Year Audited Year
to 30 Jun 23 to 30 Jun 22 To 31 Dec 2022
Share Share Share
Number of Capital Number of Capital Number of Capital
Shares GBP'000 Shares GBP'000 Shares GBP'000
Ordinary Shares
At start of period 21,806,834 27 16,200,919 20 16,200,919 20
Share placing and
subscription for cash - - - - 5,037,059 6
Consideration paid in
shares - - - - 540,000 1
Shares issued in lieu of
fees - - - - 28,856 0.3
At end of period 21,806,834 27 16,200,919 20 21,806,834 27
-------------------------- ------------ ------------- ------------ ------------- ------------ -----------
Total called up share
capital 21,806,834 27 16,200,919 20 21,806,834 27
-------------------------- ------------ ------------- ------------ ------------- ------------ -----------
13) POST BALANCE SHEET EVENTS
There are no post balance sheet events to report.
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END
IR PPUGUBUPWGWQ
(END) Dow Jones Newswires
September 27, 2023 02:00 ET (06:00 GMT)
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