12 November 2020
("MediaZest", the "Company” or the “Group”; AIM: MDZ)
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.
0845 207 9378
David Hignell/Adam Cowl
020 3470 0470
020 3764 2341
Notes to Editors:
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