REG - Zinc Media Group PLC - Trading Update

Zinc MediaAnnouncement

07/02/2024 07:00

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RNS Number : 2492C  Zinc Media Group PLC  07 February 2024

 

 

07 February 2024

 

 

Zinc Media Group plc

 

("Zinc" or the "Group")

 

Trading update

 

 

 

Zinc Media Group plc (AIM: ZIN), the award-winning television and content
production group, is pleased to announce that, subject to audit, it expects to
deliver a record year of revenue and profitability in line with market
expectations for FY23, and is starting FY24 with the highest level of forward
bookings.

 

Financial highlights:

 

·      Full year revenue in FY23 increased over 30% to £40m (FY22:
£30m) driven by 20% organic growth in television revenues and the impact of a
full year of recognition of The Edge which was acquired in August 2022.

 

·      Adjusted EBITDA is expected to be £1m (FY22: £0.1m), the
highest for over 10 years and in line with market expectations.

 

·      Strong forward order book for FY24:

 

·      £17m of revenue secured for FY24, which is £2m more than at the
same point last year and reflects a further £3m since the trading update on
27 November 2023.

 

·      £5m of revenue in highly advanced stages of discussion for
recognition in FY24, with a substantial pipeline of opportunity for the year
ahead in earlier stage discussions.

 

·      Robust balance sheet with cash of £4.9m as at 31 December 2023
(31 December 2022: £3.6m), a £1.3m increase in cash driven by a positive
trading performance and working capital inflows.

 

Key operational highlights

 

The investments made over the past three years have created a diversified
content creation company, and now produce high quality television, brand and
audio content for a range of end markets and customers.  As a result,
television production now accounts for approximately 60% of Group revenues,
with production for brands and businesses approximately 40%, and
 approximately 30% of revenues now come from outside the UK. This diversified
production revenue base reduces the risk associated with exposure to any one
market or territory.

 

There are currently 40 television programmes produced by Zinc companies
available to view in the UK, either on terrestrial channels, on-demand or via
subscription TV platforms. These include the critically acclaimed series Putin
vs The West, currently premiering on the BBC and iPlayer, series two of Con or
Cure currently on BBC ONE every weekday morning, Bargain Loving Brits in the
Sun on Channel 5, and Sunday Morning Live! on BBC ONE on Sunday Mornings. A
full list of all Zinc produced programmes currently available to watch is on
the Group's website:
https://zincmedia.com/news/latest-news/what-s-on-tv-from-zinc-media-group
(https://zincmedia.com/news/latest-news/what-s-on-tv-from-zinc-media-group)

 

The Edge Picture Company, which was acquired in August 2022, continues to
perform ahead of acquisition expectations. It has recently won new
international business from a global petrochemical company and has started the
year doing extensive work in the UK for Network Rail. The Group is investing
further in the success of The Edge with a new venture targeting FTSE 100
companies in the UK and two ventures in international markets where it already
secures significant revenues and has a long term client base.

 

 

Outlook

 

The Group is starting FY24 in an excellent position with record levels of
forward bookings. Revenue already booked and anticipated to be recognised in
FY24 is £17m, which is £2m more than at the same point last year. Recently
announced new series include Defending Europe for National Geographic, Chasing
Glory: The Road to Paris 2024 for Warner Bros. Discovery, and Top Gun: The
Next Generation (working title) for National Geographic Channel, a joint
venture between The Walt Disney Company and the National Geographic Society,
which includes direct to consumer platforms Disney+ and Hulu.

 

The total pipeline across the Group is also strong with a further £5m of
potential revenue in highly advanced stages of discussion. This is less than
at the same time last year reflecting the fact that more revenue has already
been secured than at this time last year. The Group also has a strong pipeline
of opportunitites in earlier stages of discussion.

 

The Group expects the wider UK content production market to continue to remain
challenging, especially among the UK television public service broadcasters
(PSBs). Despite this, the quality of the Group's content production including
its recent success winning business from global streamers has enabled the
Group to outperform expectations in FY23, and enter FY24 in a strong position.
Furthermore, the Group's diversified revenue base and increasing international
presence puts it in a good position to weather these latest market headwinds
and deliver further profitability in the current financial year.

 

 

Mark Browning, Chief Executive Officer, Zinc Media Group, says:

 

"We are delighted with the progress made in FY23. Our performance has bucked
wider market trends and our organic investments have delivered excellent
growth which is reflected in our significantly improved EBITDA position. The
Edge continues to perform well and the Group has a strong pipeline of
opportunities. Zinc's highly diversified portfolio of companies and excellent
organic growth performance continues to provide a significant long-term
opportunity as it continues to grow its market share.  Whilst market
conditions remain challenging, we are confident in the strength of our
business and our ability to continue delivering profit growth."

 

 

 

This announcement contains inside information for the purposes of the UK
Market Abuse Regulation.

 

 

For further information, please contact:

 Zinc Media Group plc                                   +44 (0) 20 7878 2311

 Mark Browning, CEO / Will Sawyer, CFO

 www.zincmedia.com (http://www.zincmedia.com)

 Singer Capital Markets (Nominated Adviser and Broker)  +44 (0) 20 7496 3000

 James Moat / Sam Butcher

 IFC Advisory Ltd (Financial PR)                        +44 (0) 20 3934 6630

 Graham Herring / Zach Cohen

 

 

About Zinc Media Group

Zinc Media Group plc is a premium television and content creation group.

 

The award-winning and critically acclaimed television labels comprise Brook
Lapping, Red Sauce, Supercollider, Tern Television, Rex and Atomic, along with
Bumblebee Post Production, and produce programmes across a wide range of
factual genres for UK and international broadcasters.

 

Zinc Communicate specialises in developing cross-platform content for brands,
businesses and rights holders.

The Edge Picture Company produces film content for brands and corporates in
the UK, Qatar and other international markets.

 

For further information on Zinc Media please visit www.zincmedia.com
(http://www.zincmedia.com/) .

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