7 March 2025
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.
MediaZest
Plc
(“MediaZest”,
the “Company”, or the “Group”)
Final
Results
32% increase in revenues and return to EBITDA
profitability
MediaZest
plc (AIM: MDZ), the creative audio-visual solutions provider,
announces its consolidated audited results for the year ended
30 September 2024 (“FY24”), which
showed a return to year-on-year growth, a return to positive EBITDA
and an improved cash position following a strong Q4 trading
performance.
Outlook
for FY25 is positive with a strong forward order book and
encouraging forward visibility into the new financial year. The
Board expects to see further improvement in the Company’s financial
performance in 2025.
Financial
Highlights
|
Year ended 30 September
|
FY24
|
FY23
|
|
|
£’000
|
£’000
|
|
Revenue
|
3,074
|
2,335
|
|
Gross Profit
|
1,595
|
1,262
|
|
Gross Margin
|
52%
|
54%
|
|
EBITDA1
|
14
|
(322)
|
|
(Loss)/Profit after tax
|
(214)
|
(553)
|
|
(Loss)/Earnings per share (pence)
|
(0.0133)
|
(0.0396)
|
|
Cash
|
64
|
40
|
1EBITDA
is defined as (Loss)/Profit before tax adding back Finance costs,
depreciation and amortisation
Operational
Highlights
-
Strong Q4 trading with key
customers continuing to roll-out digital signage installations
across multiple sites
-
Growth in
longer-term recurring revenue contracts, with a recurring annual
run rate at 30 September 2024 of c.
£0.9m (At September 2023: c.
£0.7m)
-
European
subsidiary in the Netherlands
continues to deliver strong revenue growth, driven by automotive
customer demand
-
Significant
projects undertaken during the year include:
-
Pets at Home –
Continued roll out of digital signage solutions, now in over 100
stores across the UK
-
Lululemon
Athletica - UK
projects, as well as new stores in Oslo, Stockholm and Berlin
-
Kia – Car
show
room audio visual roll outs continued in the Netherlands, Ireland and Slovakia
-
Hyundai – Show
room audio visual upgrades and ongoing support and
maintenance
-
First Rate Exchange Services –
Successful
“proof of concept” project for the supply of digital currency
boards into UK post offices
Geoff Robertson, Chief Executive Officer of MediaZest,
commented: “We
are delighted with MediaZest’s strong performance in the second
half of the year, and the growing momentum we have brought into the
new financial year. Our order book and overall forward visibility
is encouraging and we look to continue this momentum throughout
2025.”
Notice of Investor Presentation
Geoff Robertson, Chief Executive
Officer, will provide a live presentation in relation to the
Company’s Final Results via the Investor Meet Company platform on
Wednesday 19 March 2025 at
11am GMT. The presentation is open to
all existing and potential shareholders. Investors can sign up to
Investor Meet Company for free and register
here: https://www.investormeetcompany.com/mediazest-plc/register-investor
For
further information please contact:
|
MediaZest
Plc
|
www.mediazest.com
|
|
Geoff
Robertson, Chief Executive Officer
|
via
Walbrook PR
|
|
|
|
|
SP
Angel Corporate Finance LLP (Nomad)
|
Tel:
+44 (0)20 3470 0470
|
|
David
Hignell / Adam Cowl
|
|
|
|
|
|
Hybridan
LLP (Corporate Broker)
|
Tel:
+44 (0)20 3764 2341
|
|
Claire
Noyce
|
|
|
|
|
|
Walbrook
PR (Media & Investor Relations)
|
Tel:
+44 (0)20 7933 8780 or
mediazest@walbrookpr.com
|
|
Paul
McManus / Lianne Applegarth
Alice
Woodings
|
Mob: +44
(0)7980 541 893 / +44 (0)7584 391 303 /
+44
(0)7407 804 654
|
|
|
|
About
MediaZest (www.mediazest.com)
MediaZest
is a creative audio-visual solutions provider that specialises in
delivering innovative digital signage and audio systems to leading
retailers, brand owners and corporations. The Group offers 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 in February 2005.
MediaZest’s
new AIM rule 26 investor site is now available to view on the
Company website here:
https://www.mediazest.com/about/investor-relations/
MediaZest
Plc
Chairman’s statement
The Board
presents the consolidated audited results for the year ended
30 September 2024 for MediaZest plc
("MDZ" or the “Company”) and its wholly owned subsidiary companies
MediaZest International Ltd ("MDZI") and MediaZest International BV
("MDZBV") which together constitute the "Group".
About
MediaZest
MediaZest
is a creative audio-visual solutions provider that specialises in
delivering innovative digital signage and audio systems. The Group
offers an integrated service from content creation and system
design to installation, technical support, and maintenance and
operates in three core sectors:
-
Retail
- Major high street retail brands continue to transition to digital
signage displays including window displays, self-service kiosks and
large-scale displays such as LED and videowalls.
-
Automotive
- The role of technology in automotive showrooms has also evolved
with major automotive brands increasingly using audio-visual
solutions on their sites.
-
Corporate
Offices
- Typical projects in this sector include hybrid meeting rooms,
video conferencing technology and innovation centres.
During the
last financial year the Group worked with customers such as
Pets
at Home, Lululemon Athletica, KIA, Hyundai, First Rate Exchange
Services, Wincanton, Harrods, Arc'Teryx
and Castore.
Overview
The Board
is delighted to report to shareholders that the trading performance
of the Group has significantly improved over the last year.
MediaZest has returned to year-on-year revenue growth, has
delivered a return to profitability at the EBITDA level, and has
made further improvement in the Company's overall cash position
following a strong trading performance in 2024.
Financial
Review
The
improved FY24 trading performance, showing a 32% increase in
revenues to £3.074m (FY23: £2.335m), reflects the resumption of key
client projects in FY24, following a period of uncertainty within
the macro-economic environment, which impacted decision making
regarding quantum and the timing of the roll out of digital signage
and audio systems in FY23.
At the
beginning of the financial year, the Board targeted a return to
year-on-year growth, alongside a return to EBITDA profitability,
and we are pleased to deliver against these objectives.
We are
particularly pleased to see further growth in longer-term recurring
revenue contracts, having ended the financial year with a recurring
annual run rate of approximately £0.9m, up from £0.7m as at
September 2023.
|
Year
ended 30 September
|
FY24
|
FY23
|
FY22
|
FY21
|
|
Revenues
(£’000)
|
3,074
|
2,335
|
2,820
|
2,246
|
Group
results for the year and Key Performance Indicators
("KPIs")
-
Revenue
for the year increased 32% to £3,074,000 (2023:
£2,335,000)
-
Gross
profit increased 26% to £1,595,000 (FY23: £1,262,000)
-
Consistent
gross margins of 52% (FY23: 54%)
-
Administrative
expenses excluding depreciation and amortisation were £1,582,000
(FY23: £1,487,000)
-
EBITDA
profit was £14,000 (FY23: £322,000 loss)
-
Loss after
tax of £214,000 (FY23: £553,000 Loss)
-
Basic and
fully diluted earnings / loss per share 0.0133 pence (FY23: loss per share 0.0396 pence)
-
Net assets
of the Group were £593,000 (FY23: £688,000)
-
Cash in
hand at 30 September 2024 was £64,000
(FY23: £40,000)
Operational
Review
FY24 saw
strong client demand for our audio-visual solutions return across
the three key sectors that MediaZest focusses on, namely Retail,
Automotive, and Corporate Office spaces. A number of large-scale
deployments had been delayed in FY23 and it was reassuring to see a
number of well-known brands roll-out new digital signage displays
across multiple locations during the financial year. Our long-term
client base remains consistent, and we enter the new financial year
with a greater degree of visibility on further roll-out programmes
expected during 2025.
We
continue to be encouraged by new project opportunities within our
existing client base, as well as seeing incoming opportunities with
new potential customers as a result of additional investment in our
marketing activities.
As noted
throughout the year. we have been particularly active delivering
projects for a number of our key customers. In FY24 we saw the
continued roll-out of digital signage solutions for
Pets
at Home, with our
solutions now in place in over 100 stores across the UK. We also
completed installation for Lululemon
Athletica within the
UK as well as in new stores in Oslo, Stockholm and Berlin. Both Hyundai
and
Kia
are major
clients within the automotive industry and we have installed new
digital signage for the former across dealerships in the UK and
with the latter in three territories across Europe.
Shortly
after the end of the financial year, we announced the completion of
a "proof of concept" project with First
Rate Exchange Services ("FRES")
whereby we installed digital currency boards across 50 UK Post
Office locations. These boards offer customers daily live exchange
rates, supporting marketing materials and offers relating to the
Post Office's foreign currency exchange services.
Our
European subsidiary in the
Netherlands continues to deliver strong revenue growth
driven by automotive customer demand and other projects.
Outlook
As a Board
we continue to believe that the outlook for the new financial year
is encouraging. We have returned to year-on-year revenue growth and
we see this momentum continuing into FY25. We have good visibility
on ongoing long-term project roll-outs with existing customers,
with several confirmed substantial projects in the new financial
year.
Going into
2025, recurring revenue streams have been robust with growth
expected to continue in FY25.
Initial
feedback from the "proof of concept" contract with FRES is that the
project has been successful, demonstrating that digital currency
boards are an effective alternative to the current static displays.
We believe this could present a significant opportunity for
MediaZest, given that FRES provides rate boards to approximately
1,500 Post Office branches and supplies currency exchange services
to a range of clients including John
Lewis, Hays Travel, and TUI.
We
continue to seek new opportunities in Europe and our Dutch subsidiary continues to
perform well and attract client interest.
As
previously stated, we believe that adding scale to the current
operational business via potential M&A activity would unlock
shareholder value. The Board therefore continues to evaluate
potential acquisition targets that would further enhance the
Group's business.
The Board
remains confident in the outlook for the business, and we will
target further year-on-year growth and a return to profitability at
the pre-tax level in FY25, having already recorded a positive
EBITDA performance in FY24.
The new
financial year has started well and we remain very positive about
the Group's future.
Lance O'Neill
Chairman
6 March 2025
Consolidated
Statement of Profit or Loss
for
the Year Ended 30 September 2024
|
|
2024
|
2023
|
|
|
£'000
|
£'000
|
|
|
|
|
|
CONTINUING
OPERATIONS
|
|
|
|
Revenue
|
3,074
|
2,335
|
|
Cost of
sales
|
(1,479)
|
(1,073)
|
|
|
|
|
|
GROSS
PROFIT
|
1,595
|
1,262
|
|
Administrative
expenses
|
(1,655)
|
(1,554)
|
|
|
|
|
|
OPERATING
LOSS BEFORE EXCEPTIONAL ITEMS
|
(60)
|
(292)
|
|
|
|
|
|
Exceptional
items
|
-
|
(97)
|
|
|
|
|
|
OPERATING
LOSS
|
(60)
|
(389)
|
|
|
|
|
|
Finance
costs
|
(151)
|
(164)
|
|
|
|
|
|
LOSS
BEFORE INCOME TAX
|
(211)
|
(553)
|
|
|
|
|
|
Income
tax
|
(3)
|
-
|
|
|
|
|
|
LOSS
FOR THE YEAR
|
(214)
|
(553)
|
|
|
|
|
|
Loss
attributable to:
|
|
|
|
Owners of
the parent
|
(214)
|
(553)
|
|
|
|
|
|
Earnings
per share expressed in pence per share:
|
|
|
|
|
|
|
|
Basic
|
(0.0133)
|
(0.0396)
|
|
Diluted
|
(0.0133)
|
(0.0396)
|
Consolidated
Statement of Profit or Loss and Other Comprehensive
Income
for
the Year Ended 30 September 2024
|
|
2024
|
2023
|
|
|
£'000
|
£'000
|
|
|
|
|
|
LOSS
FOR THE YEAR
|
(214)
|
(553)
|
|
|
|
|
|
OTHER
COMPREHENSIVE INCOME
|
-
|
-
|
|
|
|
|
|
TOTAL
COMPREHENSIVE INCOME FOR THE YEAR
|
(214)
|
(553)
|
|
|
|
|
|
Total
comprehensive income attributable to:
|
|
|
|
Owners of
the parent
|
(214)
|
(553)
|
Consolidated
Statement of Financial Position
30 September 2024
|
|
2024
|
2023
|
|
|
£'000
|
£'000
|
|
ASSETS
NON-CURRENT
ASSETS
|
|
|
|
Goodwill
|
2,772
|
2,772
|
|
Owned:
Property, plant and equipment
|
56
|
60
|
|
Right-of-use:
Property, plant and equipment
|
355
|
37
|
|
|
3,183
|
2,869
|
|
CURRENT
ASSETS
|
|
|
|
Inventories
|
76
|
97
|
|
Trade and
other receivables
|
649
|
406
|
|
Cash and
cash equivalents
|
64
|
40
|
|
|
789
|
543
|
|
TOTAL
ASSETS
|
3,972
|
3,412
|
|
|
|
|
|
EQUITY
SHAREHOLDERS'
EQUITY
|
|
|
|
Called up
share capital
|
3,686
|
3,656
|
|
Share
premium
|
5,331
|
5,244
|
|
Share
option reserve
|
146
|
146
|
|
Retained
earnings
|
(8,572)
|
(8,358)
|
|
|
|
|
|
TOTAL
EQUITY
|
591
|
688
|
|
|
|
|
|
LIABILITIES
NON-CURRENT
LIABILITIES
|
|
|
|
Financial
liabilities - borrowings
|
|
|
|
Interest
bearing loans and borrowings
|
492
|
195
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Trade and
other payables
|
1,412
|
1,308
|
|
Financial
liabilities - borrowings
|
|
|
|
Interest
bearing loans and borrowings
|
1,477
|
1,221
|
|
|
2,889
|
2,529
|
|
TOTAL
LIABILITIES
|
3,381
|
2,724
|
|
|
|
|
|
TOTAL
EQUITY AND LIABILITIES
|
3,972
|
3,412
|
Consolidated
Statement of Changes in Equity
for
the Year Ended 30 September 2024
|
|
Called
up
Share
capital
|
Retained
earnings
|
Share
premium
|
Share
option
reserve
|
Total
equity
|
|
|
£'000
|
£'000
|
£'000
|
£'000
|
£'000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at 1 October 2022
|
3,656
|
(7,805)
|
5,244
|
146
|
1,241
|
|
|
|
|
|
|
|
|
Changes
in equity
|
|
|
|
|
|
|
Total
comprehensive income
|
-
|
(553)
|
-
|
-
|
(553)
|
|
|
|
|
|
|
|
|
Balance
at 30 September 2023
|
3,656
|
(8,358)
|
5,244
|
146
|
688
|
|
|
|
|
|
|
|
|
Changes
in equity
|
|
|
|
|
|
|
Issue of
share capital
|
30
|
-
|
87
|
-
|
117
|
|
Total
comprehensive income
|
-
|
(214)
|
-
|
-
|
(214)
|
|
|
|
|
|
|
|
|
Balance
at 30 September 2024
|
3,686
|
(8,572)
|
5,331
|
146
|
591
|
Consolidated
Statement of Cash Flows
for
the Year Ended 30 September 2023
|
|
2024
|
2023
|
|
|
£'000
|
£'000
|
|
|
|
|
|
Cash
flows from operating activities
|
|
|
|
Cash
generated from operations
|
(108)
|
162
|
|
|
|
|
|
Net cash
(used in)/generated from operating activities
|
(108)
|
162
|
|
|
|
|
|
Cash
flows from investing activities
|
|
|
|
Purchase
of tangible fixed assets
|
(28)
|
(47)
|
|
Sale of
tangible fixed assets
|
-
|
16
|
|
|
|
|
|
Net cash
used in investing activities
|
(28)
|
(31)
|
|
|
|
|
|
Cash
flows from financing activities
|
|
|
|
Other
loans receipt/(repayment)
|
13
|
30
|
|
Shareholder
loan net receipt
|
84
|
131
|
|
Bounce
back loan (repayment)
|
(8)
|
(10)
|
|
Payment of
lease liabilities
|
(7)
|
(50)
|
|
Proceeds
of share issue
|
120
|
-
|
|
Share
issue costs
|
(3)
|
-
|
|
Invoice
financing (repayment)
|
-
|
(154)
|
|
Interest
paid
|
(39)
|
(83)
|
|
|
|
|
|
Net cash
from/(used in) financing activities
|
160
|
(136)
|
|
|
|
|
|
Increase/(decrease)
in cash and cash equivalents
|
24
|
(5)
|
|
Cash
and cash equivalents at beginning of
year
|
40
|
45
|
|
|
|
|
|
Cash
and cash equivalents at end of year
|
64
|
40
|
Notes
to the Consolidated Financial Statements
for
the Year Ended 30 September 2024
The
financial information set out in this announcement does not
constitute statutory accounts as defined in section 435 of the
Companies Act 2006.
The
financial information for the period ended 30
September 2023 is
derived from the statutory accounts for that year which have been
delivered to the Registrar of Companies. The
auditors reported on those accounts; their report
was (i)
unqualified, (ii) did not contain a statement under section 498(2)
or 498(3) of the Companies Act 2006 and (iii) drew attention by way
of emphasis to a material uncertainty related to going
concern.
The
statutory accounts for the year ended 30
September 2024 have
not yet been delivered to the Registrar of Companies. The auditors
reported on those accounts; their report was (i) unqualified, (ii)
did not contain a statement under section 498(2) or 498(3) of the
Companies Act 2006, and (iii) did not draw attention by way of
emphasis to any matters.
The 2024
accounts will be delivered to the Registrar of Companies following
the Company's Annual General Meeting, details of which will be
announced shortly.
-
Going
concern
The Group
made a loss after tax of £214,000 and has net current liabilities
of £2,100,000. The financial statements are prepared on a going
concern basis which the Directors believe to be appropriate for the
following reasons:
The
Directors have considered financial projections based upon known
future invoicing, existing contracts, the pipeline of new business
and the increasing number of opportunities it is currently working
on in 2025, the expected macroeconomic environment and prior year
trading.
Several
substantial new contracts have been won during the new financial
year, ongoing roll out projects with existing clients continue
apace, and recurring revenues have grown significantly in the
second half of calendar year 2024.
Management
has engaged with clients where possible to understand their plans
for the coming year and the likely timing of those plans. Several
have indicated substantial projects which they expect to work with
the Company to deliver in the next 12 months, however as always,
timing remains difficult to predict.
The
Directors have received written confirmation from the holders of
the shareholder loans that these liabilities will not be called
within 12 months of signing these financial statements unless the
company has sufficient cash resources with which to make such
payments.
These
forecasts indicate that the Company will generate sufficient cash
resources to meet its liabilities as they fall due over the
12-month period from the date of the approval of the accounts. As a
result the Directors consider that it is appropriate to draw up the
accounts on a going concern basis. The financial statements do not
include any adjustments that would result from the basis of
preparation being inappropriate.
-
Segmental
reporting
Revenue
for the year can be analysed by customer location as
follows:
|
|
2024
|
2023
|
|
|
£'000
|
£'000
|
|
|
|
|
|
UK and Channel Islands
|
2,652
|
1,979
|
|
Rest of Europe
|
422
|
356
|
|
|
3,074
|
2,335
|
|
|
|
|
|
An
analysis of revenue by type is shown below:
|
|
|
|
|
2024
|
2023
|
|
|
£'000
|
£'000
|
|
|
|
|
|
Hardware
and installation
|
2,529
|
1,686
|
|
Support
and maintenance - recurring revenue
|
453
|
595
|
|
Other
services (including software solutions)
|
92
|
54
|
|
|
3,074
|
2,335
|
|
Analysis
of revenue recognition:
|
|
|
|
|
2024
|
2023
|
|
|
£'000
|
£'000
|
|
|
|
|
|
Recognised
at a point in time
|
2,573
|
1,688
|
|
Recognised
over time
|
501
|
647
|
|
|
3,074
|
2,335
|
|
Analysis
of future obligations:
|
|
|
|
|
2024
|
2023
|
|
|
£'000
|
£'000
|
|
|
|
|
|
Performance
obligations to be satisfied in the next year
|
402
|
439
|
|
Performance
obligations to be satisfied in later years
|
-
|
-
|
|
|
402
|
439
|
Segmental
information and results
The Chief
Operating Decision Maker ('CODM'), who is responsible for the
allocation of resources and assessing performance of the operating
segments, has been identified as the Board. IFRS 8 requires
operating segments to be identified on the basis of internal
reports that are regularly reviewed by the Board. The Board have
reviewed segmental information and concluded that there is only one
operating segment.
The Group
does not rely on any individual client, however there is one client
who has contributed over 10% of total revenue. The following
revenues arose from sales to the Group's largest client:
|
|
2024
|
2023
|
|
|
£'000
|
£'000
|
|
|
|
|
|
Goods and
services
|
503
|
332
|
|
Service
and maintenance
|
168
|
116
|
|
Other
services
|
-
|
25
|
|
|
671
|
473
|
-
Earnings
per share
|
|
2024
|
2023
|
|
|
£'000
|
£'000
|
|
|
|
|
|
Loss
|
|
|
|
Loss for
the purposes of basic and diluted earnings per share being net loss
attributable to equity shareholders
|
(214)
|
(553)
|
|
|
|
|
|
|
2024
|
2023
|
|
|
Number
|
Number
|
|
Number
of shares
|
|
|
|
Weighted
average number of ordinary shares for the purposes of basic
earnings per share
|
1,615,055,911
|
1,396,425,774
|
|
Number of
dilutive shares under option or warrant
|
-
|
-
|
|
|
|
|
|
Weighted
average number of ordinary shares for the purposes of dilutive loss
per share
|
1,615,055,911
|
1,396,425,774
|
Basic
earnings per share is calculated by dividing the loss after tax
attributed to ordinary shareholders of £214,000 (2023 loss:
£553,000) by the weighted average number of shares during the year
of 1,615,055,911 (2023: 1,396,425,774).
The
diluted loss per share is identical to that used for basic loss per
share as the options are "out of the money" and therefore
anti-dilutive.
-
Reconciliation
of Loss before income tax to cash generated from
operations
|
Group
|
2024
|
2023
|
|
|
£'000
|
£'000
|
|
|
|
|
|
Loss
before income tax
|
(211)
|
(553)
|
|
Taxation
|
(3)
|
-
|
|
Depreciation
charges
|
74
|
67
|
|
Profit on
disposal of fixed assets
|
-
|
(16)
|
|
Finance
costs
|
151
|
164
|
|
|
11
|
(338)
|
|
|
|
|
|
Decrease
in inventories
|
21
|
24
|
|
(Increase)/decrease
in trade and other receivables
|
(244)
|
268
|
|
Increase
in trade and other payables
|
104
|
208
|
|
Cash
(used in)/generated from operations
|
(108)
|
162
|
-
Cash and
cash equivalents
|
|
2024
|
2023
|
|
|
£'000
|
£'000
|
|
|
|
|
|
Cash and
cash equivalents
|
64
|
40
|
