MediaZest reports improvement in first-half revenue, losses

28th Jun 2024 12:21

(Sharecast News) - Creative audio-visual specialist MediaZest reported a significant improvement in both revenue and its losses in its first-half results on Friday.

The AIM-traded company reported a revenue increase to £1.173m for the six months ended 31 March. from £1.054m year earlier, with gross profit rising to £0.7m from £0.6m.

Its gross margin also improved, to 60% from 57%.

The EBITDA loss narrowed to £0.03m, a notable improvement from the £0.15m loss in the first six months of the 2023 financial year.

MediaZest said its loss after tax decreased to £0.14m from £0.26m, with a corresponding reduction in losses per share to 0.009p from 0.02p.

The company's cash position also saw a slight increase to £14,000 from £10,000.

Operational highlights for the period included successful long-term project rollouts with key customers such as Hyundai and Pets at Home, consistent recurring revenue streams, and completion of projects for Lululemon Athletica across Europe.

Additionally, MediaZest delivered its first LED video wall for Arc'Teryx in Covent Garden.

Looking ahead, MediaZest said it had started the second half of the 2024 financial period strongly, securing new orders from several well-known brands and expanding its project pipeline in Europe, including installations in the Netherlands, Germany, and France.

The company also announced a follow-on contract to supply digital signage for a global automotive client in the EU.

With strong long-term demand for audio-visual technology in the retail, automotive and corporate office sectors, MediaZest said it was aiming to build on its first-half progress, targeting a return to profitability for the full financial year ending 30 September.

The company said it was also evaluating potential 'buy-and-build' acquisitions to further enhance growth.

"With an improvement in the first half results compared to 2023 and a strong start to the second half, we remain confident that this momentum will continue and result in an improved overall performance for the year," said group chief executive officer Geoff Robertson.

"We were delighted to announce a follow-on contract with a large global automotive client last month, which will provide additional revenues of around €0.15m in the short to medium term and which will contribute to recurring revenue streams.

"Our project pipeline continues to grow and we expect further contract confirmations before the financial year end."

Reporting by Josh White for Sharecast.com.