TIDMZIN

RNS Number : 8872A

Zinc Media Group PLC

28 September 2022

28 September 2022

Zinc Media Group plc

("Zinc Media", the "Group" or the "Company")

Interim results for the six months ended 30 June 2022

Zinc Media Group plc, the award-winning television, brand, content and audio production group, is pleased to announce its unaudited interim results for the six months to 30 June 2022 ("H1 2022").

Headlines

The Group is pleased to report excellent progress in H1 2022 and continues to trade in line with market expectations for the current financial year. The first half of 2022 includes the following highlights:

   --      Revenue of GBP10.8m (H1 2021: GBP7.0m), an increase of 54% year-on-year. 

-- Adjusted EBITDA[1] loss of GBP0.65m (H1 2021: loss of GBP1.1m), an improvement of GBP0.45m over the prior year period.

-- Gross margins in the period were 33% (H1 2021: 34%), which remain significantly up on 2019 and 2020 when they were 25% and 30% respectively.

-- The acquisition of The Edge Picture Company ("The Edge") post period-end, announced in August, will add scale to the existing Group, supporting long-term profitability. The Edge is one of the largest brand and corporate film making production companies in the UK. It closely aligns with the Group's other film-based production businesses and is a fantastic fit for Zinc Media.

-- The Group completed a fundraise of GBP5m (before expenses) alongside the acquisition of The Edge. This was supported by several new and existing institutional shareholders. The proceeds of the placing were used to finance the acquisition and will also provide additional growth capital for the Group.

-- As at 26 September 2022 the enlarged group has booked GBP27m of revenue which has or is expected to be delivered in 2022, representing an increase of GBP10m since the last trading update in May 2022 and an improvement of GBP10m compared to the same point in 2021 in relation to that financial year.

-- The Group has a strong pipeline of potential new business for 2022 and 2023 and is confident of trading in line with market expectations.

Operational Highlights

-- There were a number of significant programme successes in the first half of the year, which included:

o Being awarded the weekly BBC ONE series Sunday Morning Live for an initial two year term in a competitive tender process;

o The recommission of the Group's largest ever series with Channel 5;

o The recommission from the Warner Bros. Discovery Group of Spooked Scotland;

o A landmark programme for BBC ONE titled Tom Daley: Illegal to be me;

o Afghanistan: Getting Out , a major production for the BBC; and

o Nominations for prestigious industry awards including a BAFTA, an RTS award and two Emmys in recognition of the Group's quality and impactful content.

Outlook

-- The outlook for the Group is positive, with the recent period of new business conversion underpinning the Board's confidence in meeting market expectations for the financial year, including being profitable in the second half of the year.

-- The Edge are performing very well: they are having their best ever year and expect to post record revenues in 2022.

-- The acquisition of The Edge will further strengthen and provide significant scale to the Group, resulting in annualised proforma Group revenues for FY22 of over GBP35m.

Mark Browning, Chief Executive, commented: "We are delighted with the current performance of the Group which has seen a considerable increase in turnover whilst maintaining an attractive margin, with good visibility of sustainable profitability. The organic growth, coupled with the acquisition of The Edge, provides initial scale and the Board is optimistic about the Group's outlook and views the future with confidence."

A copy of the interim results will be made available on the Company's website , zincmedia.com.

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 (NOMAD and Broker to Zinc Media Group plc)     +44 (0) 20 7496 3000 

Mark Taylor / George Tzimas

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

Graham Herring / Zach Cohen

CHAIRMAN'S STATEMENT

The first six months of 2022 demonstrate the Group has largely recovered from the Covid pandemic with revenues up over 50% compared to the same period last year and is trading in line with market expectations for the full year. With the acquisition of The Edge, which was completed in August, and the scale this brings, we look forward to sustained profitability in 2023.

The Edge is synergistic with our current portfolio and was priced at a sensible valuation multiple. The level of support from new and existing shareholders for this acquisition has been overwhelming, and we thank all investors for their ongoing support. Together with our employees and clients, we are building a premium content creation Group with the ambition and financial backing to operate at significant scale.

The Group continues to deliver outstanding programmes and content across all divisions. The award of the BBC ONE series Sunday Morning Live demonstrates that the Group is ambitious to enter new markets; the renewal of the Group's largest ever series commission, Bargain Loving Brits in the Sun for Channel 5, demonstrates sustained creative and commercial firepower; and the brilliant Tom Daley: Illegal to be me for BBC ONE shows the Group continues to produce some of the most talked about factual television in the UK. With Zinc Communicate also growing by almost 80% in the period, this is a Group that is attracting the right kind of attention.

September 2022 concludes the Group's initial three year strategic plan which was announced in 2019, with all aspects successfully delivered, including the Group's latest acquisition. This is a phenomenal achievement given the significant headwinds encountered due to the Covid pandemic and current global economic conditions.

Notwithstanding inflationary pressures and the impending economic downturn, the future of Zinc Media is looking very positive. Current strong trading and the acquisition of The Edge post period end allows for the return of market forecasts. The Group is on course for a period of steady organic growth and sustainable profitability, with the Board focussed on providing returns and 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 strong with organic growth seeing revenues increase 54% to GBP10.8m (H1: 2021 GBP7.0m) with an adjusted EBITDA loss of GBP0.65m, an improvement of GBP0.45m over the same period in the prior year.

Following the acquisition of The Edge in August, market estimates were reinstated, and the Group is trading in line with market expectations and expecting to be profitable at EBITDA level in H2 2022.

As at 26 September 2022 the enlarged group has booked GBP27m of revenue which has or is expected to be delivered in 2022, representing an increase of GBP10m since the last trading update in May 2022, and an improvement of GBP10m on the same point in 2021 in relation to that financial year. The Edge's financial performance will be consolidated in the Group's results from 23 August 2022 (the date of acquisition).

The strategy for 2023 and beyond is to deliver organic growth at both the revenue and EBITDA level while maintaining healthy cash reserves and continuing to strengthen the balance sheet. As the Group delivers these objectives, it will also seek further growth through selective acquisitions. These may accelerate growth in existing business areas, further diversify Group revenues in new content genres in either television or Zinc Communicate or further build the Group's non-UK business. It remains our ambition to be a listed content producing Group operating at substantial scale.

The first six months of 2022 have seen a number of editorial highlights and new business launches in the Group.

The television labels continue to produce some of the UK's most watched television. H1 2022 saw Red Sauce win the Group's largest ever volume series, a recommission of the now highly successful Bargain Loving Brits in the Sun for Channel 5. This label was launched in 2020. This was recommissioned for 54 episodes and is now running in a daytime slot as well as a peak time slot and delivering excellent ratings for the channel. It has the added benefit to the buyer in that it can also run on some of the other channels owned by Viacom, making it a strong commercial proposition. Brook Lapping continues to produce highly reputable television. This includes the excellent Afghanistan: Getting Out which explored the chaotic withdrawal of western forces from Afghanistan, a prime-time BBC ONE documentary titled Tom Daley: Illegal to be me, which was broadcast to coincide with the Commonwealth Games and shone a light on the plight of many LGBTQ+ athletes from countries where it is illegal to be gay. The first half of the year also saw the launch of the Group's latest television production label, Rex, which aims to diversify television revenues into the large market for factual entertainment, which can deliver long running series and commercially valuable IP and formats.

Tern TV's Belfast based division delivered another successful series of the daytime series Critical Incident for BBC ONE. Tern TV Glasgow delivered their first series for Really (part of Warner Bros. Discovery) with a programme titled Spooked Scotland, exploring the paranormal activity north of the border. H1 2022 saw the launch of the Group's new weekly BBC ONE series Sunday Morning Live, which is produced in partnership with Green Inc who are based in Northern Ireland and have live television expertise. Tern TV also delivered one of the BBC's masthead Easter programmes, Jill Halfpenny's Easter Walks, for BBC ONE. Tern continues to be a trusted supplier to BBC Scotland, producing many programmes for the channel including Addicted which is presented by Darren McGarvey.

Zinc Communicate continues to grow rapidly with revenues up 78% on the same period last year. It has diversified its digital publishing revenues off the back of new products focusing on sustainable energy and producing content for the home renovation market championing green initiatives. The video marketing business, which sells and produces corporate films, secured an enviable list of new partners in the reporting period including The London Institute of Banking and Finance, Sustainable Travel International and the Association for UK Interactive Entertainment, and films are being made for blue chip companies including Shell, American Express and Easyjet. Revenues in this division are on course to double in 2022. The branded entertainment and audio division grew audio revenues with new business from the BBC, and brand partnerships with the likes of Universal Music, The Independent and The Evening Standard.

Post period end, and off the back of outstanding technical innovation in the market of post-production, the Group has launched a new UK wide business called Bumblebee Post Production. Bumblebee is led by Olly Strous, the Group's CTO, who joined Zinc Media in the summer of 2021. It offers the television and branded content market a highly automated, fully remote technical solution for uploading content and post producing programmes and aims to be carbon neutral. It will make use of Zinc Media's existing technical hubs in London, Manchester, Glasgow and Belfast, and has already secured clients including Avalon Television and the BBC.

The Group continues to be recognised within its industries for producing market leading, high-quality content, with nominations for prestigious awards including a BAFTA award, an RTS award, two Emmy's and a Broadcast Digital Award.

The market for premium factual television along with content for brands and media owners remains strong. 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. While there will now be some recessionary headwinds, particularly in the UK, which may well impact speed of growth, the Group remains confident of delivering further organic growth and profitability in the years ahead.

Mark Browning

Chief Executive Officer

CFO'S REPORT

INCOME STATEMENT

Group revenues in the reporting period were up by over 50% year-on-year to GBP10.8m (H1 2021: GBP7.0m). All divisions increased revenues year-on-year in the period, with London TV up 62%, Tern TV up 37% and Zinc Communicate up 78%.

Gross margins in the period were 33% (H1: 2021 34%), which remain significantly up on 2019 and 2020 when they were 25% and 30% respectively.

Gross margins were lower in the period than the full year 2021, when they reached 38%, as a result of the Group deciding to invest in winning certain lower margin contracts in order to gain a foothold in new television markets, including live TV, that can provide the Group with high volume commissions in more diverse areas. This includes multi-million pound contracts for the BBC and Channel 5.

The Group has continued to invest in anticipation of further growth in H2. It has invested in new business winning talent in television, including launching a new television label called Rex in March, in sales and production teams in Zinc Communicate, and in technology, which has led to the launch of the post-production business, Bumblebee.

These initiatives suppressed the full impact of the healthy uplift in revenue during the period, resulting in an Adjusted EBITDA loss of GBP0.65m. This is a GBP0.45m improvement year-on-year, and improved profitability is anticipated in H2 2022 in line with market expectations.

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 2022 was GBP2.6m, having decreased by GBP3.0m during the period as a result of working capital required to service the increase in activity and due to the unwinding of working capital held at December 2021 where broadcasters had funded some large productions up front. Conversely trade and other receivables have increased by GBP3.0m since December 2021 as a result of the volume of commissions increasing markedly.

As at the end of August 2022 the Group's cash position had risen to GBP5.4m, driven by the proceeds from the capital fundraise in August.

Equity and Liabilities

The GBP0.8m reduction in equity and liabilities results from the loss for the period and a GBP1.0m increase in trade and other payables as a result of the increased working capital requirement in the period.

The Group had an outstanding balance on long-term debt of GBP3.5m as at 30 June 2022 which has remained almost unchanged (2021: GBP3.4m), held by two of the Company's shareholders and with no financial covenants relating to the debt. During the period the long-term debt holders agreed to extend the term of the debt by two years, such that the repayment of the debt is now due on 31 December 2024.

Post balance sheet events

The Company announced in August 2022 that it had acquired The Edge Picture Co Limited, one of the largest brand and corporate film making production companies in the UK, for an initial consideration of GBP1.56 million in cash and GBP0.54 million satisfied by the issue of 540,000 new ordinary shares in the Group, and deferred consideration of up to a further GBP3.875 million to be satisfied by a combination of cash and ordinary shares in the Company.

The Company also announced in August 2022 that it had raised GBP5.0 million (before expenses) by way of a placing of 5,037,059 ordinary shares.

The proceeds of the placing were used to finance the initial cash consideration due in respect of the acquisition and will also provide additional growth capital for the enlarged business.

Will Sawyer

Chief Financial Officer

 
 Zinc Media Group plc consolidated income statement 
 For the six months ended 30 June 2022 
                                          Unaudited   Unaudited       Audited 
                                          Half Year   Half Year 
                                                 to          to       Year to 
                                            30 June     30 June   31 December 
                                               2022        2021          2021 
                                 Note       GBP'000     GBP'000       GBP'000 
------------------------------  -----  ------------  ----------  ------------ 
 
 Revenue                          3          10,775       6,975        17,491 
 Cost of sales                              (7,263)     (4,628)      (10,759) 
------------------------------  -----  ------------  ----------  ------------ 
 Gross Profit                                 3,512       2,347         6,732 
 Operating expenses                         (5,118)     (4,295)       (9,097) 
 Operating loss                             (1,606)     (1,948)       (2,365) 
------------------------------  -----  ------------  ----------  ------------ 
 Depreciation & amortisation                    737         727         1,486 
 Share based payment charge                      92          40           122 
 (Profit)/loss on disposal 
  of tangible assets                              -         (1)             4 
 Exceptional items                4             132          85           141 
 Adjusted EBITDA                              (645)     (1,097)         (612) 
                                -----  ------------  ---------- 
 Finance costs                                (154)       (121)         (241) 
 Finance income                                   -           -             - 
------------------------------  -----  ------------  ----------  ------------ 
 Loss before tax                            (1,760)     (2,069)       (2,606) 
 Taxation credit                                 63          61            86 
 Loss for the period                        (1,697)     (2,008)       (2,520) 
 Attributable to: 
 Equity holders                             (1,701)     (2,016)       (2,544) 
 Non-controlling interest                         4           8            24 
 Retained loss for the period               (1,697)     (2,008)       (2,520) 
------------------------------  -----  ------------  ----------  ------------ 
 
 Earnings per share 
 Basic Loss per Share             5        (10.48)p    (12.61)p      (15.80)p 
 Diluted Loss per Share           5        (10.48)p    (12.61)p      (15.80)p 
------------------------------  -----  ------------  ----------  ------------ 
 
 
 
 Zinc Media Group plc consolidated statement of financial position 
 As at 30 June 2022 
 
 
                                   Unaudited   Unaudited           Audited 
                                     30 June     30 June       31 December 
                                        2022        2021              2021 
                           Note      GBP'000     GBP'000           GBP'000 
------------------------  -----  -----------  ----------  ---------------- 
 Assets 
 Non-current 
 Goodwill and intangible 
  assets                      6        3,464       4,153                  3,800 
 Property, plant and 
  equipment                   7          850         842                     904 
 Right-of-use assets          9          943       1,269                   1,159 
                                       5,257       6,264                   5,863 
------------------------  -----  -----------  ----------  ---------------------- 
 Current assets 
 Inventories                              63         154               226 
 Trade and other 
  receivables                 8        6,327       3,505             3,887 
 Cash and cash 
  equivalents                          2,596       5,460             5,608 
                                       8,986       9,119             9,721 
------------------------  -----  -----------  ----------  ---------------- 
 Total assets                         14,243      15,383            15,584 
------------------------  -----  -----------  ----------  ---------------- 
 Equity and liabilities 
 Shareholders' equity 
 Called up share capital     11           20          20                20 
 Share premium account                 4,785       4,785             4,785 
 Merger reserve                           27          27                27 
 Share Based payment 
  reserve                                369         195               277 
 Retained earnings                   (3,087)       (858)           (1,386) 
------------------------  -----  -----------  ----------  ---------------- 
 Total equity 
  attributable 
  to equity holders of 
  the 
  parent                               2,114       4,169             3,723 
 Non-controlling 
  interests                               28          18                24 
------------------------  -----  -----------  ----------  ---------------- 
 Total Equity                          2,142       4,187             3,747 
 Liabilities 
 Non-current 
 Borrowings                            3,471       3,433                 - 
 Deferred tax                            128         218               190 
 Provisions                              250         101               250 
 Lease liabilities            9          530         931               735 
                                       4,379       4,683             1,175 
------------------------  -----  -----------  ----------  ---------------- 
 Current 
 Trade and other 
  payables                   10        7,300       5,987             6,799 
 Current tax liabilities                   4          10                 4 
 Lease liabilities            9          418         516               431 
 Borrowings                                -           -             3,428 
                                       7,722       6,513            10,662 
------------------------  -----  -----------  ----------  ---------------- 
 Total equity and 
  liabilities                         14,243      15,383            15,584 
------------------------  -----  -----------  ----------  ---------------- 
 
 
 
 
   Zinc Media Group plc consolidated statement of cash flows 
 For the six months ended 30 June 2022 
 
                                                                          Unaudited      Unaudited       Audited 
                                                                       Half year to   Half year to       Year to 
                                                                            30 June        30 June   31 December 
                                                                               2022           2021          2021 
                                                                            GBP'000        GBP'000       GBP'000 
--------------------------------------------------------------------  -------------  -------------  ------------ 
 Cash flows from operating activities 
 Loss for the period before tax                                             (1,760)        (2,069)       (2,606) 
 Adjustments for: 
 Depreciation                                                                   385            375           782 
 Amortisation and impairment of intangibles                                     352            352           704 
 Finance costs                                                                  154            121           241 
 Share based payment charge                                                      92             40           122 
 (Gain)/Loss on disposal of assets                                                -            (1)             4 
 Consideration paid in shares                                                     -            131           131 
--------------------------------------------------------------------  -------------  -------------  ------------ 
                                                                              (777)        (1,051)         (623) 
 Decrease/(increase) in inventories                                             164             30          (42) 
 (Increase)/decrease in trade and other receivables                         (2,440)            774           392 
 Increase/(decrease) in trade and other payables                                501          (784)            28 
--------------------------------------------------------------------  -------------  -------------  ------------ 
 Cash (used in)/generated from operations                                   (2,552)        (1,031)         (245) 
 Interest on leases                                                               -           (33)             - 
 Net cash flows (used in)/generated from operating activities               (2,552)        (1,064)         (245) 
--------------------------------------------------------------------  -------------  -------------  ------------ 
 Investing activities 
 Purchase of property, plant and equipment                                    (115)           (42)         (273) 
 Purchase of intangible assets                                                 (16)              -             - 
 Net cash flows used in investing activities                                  (131)           (42)         (273) 
--------------------------------------------------------------------  -------------  -------------  ------------ 
 Financing activities 
 Interest paid                                                                (111)           (83)         (241) 
 Principal elements of lease payments                                         (218)          (160)         (432) 
 Net cash flows generated used in financing activities                        (329)          (243)         (673) 
--------------------------------------------------------------------  -------------  -------------  ------------ 
 Net decrease in cash and cash equivalents                                  (3,012)        (1,349)       (1,191) 
 Translation differences                                                          -              4           (6) 
 Cash and cash equivalents at beginning of period                             5,608          6,805         6,805 
 Cash and cash equivalents at end of period                                   2,596          5,460         5,608 
--------------------------------------------------------------------  -------------  -------------  ------------ 
 
 
 
 
                                                                            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 2021        20       4,654        155         27        1,158        6,014             12           6,026 
----------------  ---------  ---------  ----------  ---------  ----------  -------------  ----------------  -------- 
 Total 
  comprehensive 
  income for the 
  year                -          -           -          -        (2,544)      (2,544)            24          (2,520) 
 Equity-settled 
  share-based 
  payments            -          -          122         -           -           122               -            122 
 Consideration 
  paid in shares      -         131          -          -           -           131               -            131 
 Dividends paid       -          -           -          -           -            -              (12)          (12) 
----------------  ---------  ---------  ----------  ---------  ----------  -------------  ----------------  -------- 
 Total 
  transactions 
  with owners of 
  the Company         -         131         122         -        (2,544)      (2,291)            12          (2,279) 
----------------  ---------  ---------  ----------  ---------  ----------  -------------  ----------------  -------- 
 Balance at 31 
  December 2021       20       4,785        277         27       (1,386)       3,723             24           3,747 
----------------  ---------  ---------  ----------  ---------  ----------  -------------  ----------------  -------- 
 
 Balance at 1 
  January 2021        20       4,654        155         27        1,158        6,014             12           6,026 
 Total 
  comprehensive 
  income for the 
  year                -          -           -          -        (2,016)      (2,016)             8          (2,008) 
 Equity-settled 
  share-based 
  payments            -          -          40          -           -            40               -            40 
 Consideration 
  paid in shares      0         131          -          -           -           131               -            131 
 Dividends paid       -          -           -          -           -            -               (2)           (2) 
----------------  ---------  ---------  ----------  ---------  ----------  -------------  ----------------  -------- 
 Total 
  transactions 
  with owners of 
  the Company         0         131         40          -        (2,016)      (1,845)             6          (1,839) 
----------------  ---------  ---------  ----------  ---------  ----------  -------------  ----------------  -------- 
 Balance at 30 
  June 2021           20       4,785        195         27        (858)        4,169             18           4,187 
----------------  ---------  ---------  ----------  ---------  ----------  -------------  ----------------  -------- 
 
 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 
----------------  ---------  ---------  ----------  ---------  ----------  -------------  ----------------  -------- 
 

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 2022 have been prepared on the basis of the accounting policies expected to be used in the 2022 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 2021.

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 2022, 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 2021 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: Zinc TV and Zinc Communicate. These divisions are the basis upon which the management reports its primary segmental information. The activities undertaken by the TV segment include the production of television. The Zinc Communicate unit includes content production for brands and businesses, publishing and audio production.

 
                                                             Unaudited      Unaudited       Audited 
                                                          Half Year to   Half Year to       Year to 
                                                           30 Jun 2022    30 Jun 2021   31 Dec 2021 
 Revenues by Business Division (continuing operations)       GBP'000's      GBP'000's     GBP'000's 
-------------------------------------------------------  -------------  -------------  ------------ 
 Zinc TV                                                         9,135          6,054        14,565 
 Zinc Communicate                                                1,640            921         2,926 
 Total                                                          10,775          6,975        17,491 
-------------------------------------------------------  -------------  -------------  ------------ 
 
   4)   EXCEPTIONAL ITEMS 

Exceptional 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 2022    30 Jun 2021   31 Dec 2021 
                                              GBP'000's      GBP'000's     GBP'000's 
----------------------------------------  -------------  -------------  ------------ 
 Reorganisation and restructuring costs            (52)           (85)          (81) 
 Other exceptional items                           (80)              -          (60) 
 Total                                            (132)           (85)         (141) 
----------------------------------------  -------------  -------------  ------------ 
 
   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 2022    30 Jun 2021   31 Dec 2021 
                                                              GBP'000        GBP'000       GBP'000 
------------------------------------------------------  -------------  -------------  ------------ 
 Weighted average number of shares used 
  in basic and diluted earnings per share calculation      16,200,919     15,989,252    16,095,991 
 Potentially dilutive effect of share options               1,467,502        788,342     1,117,890 
------------------------------------------------------  -------------  -------------  ------------ 
 
 
 Basic Loss per Share      (10.48)p   (12.61)p   (15.80)p 
 Diluted Loss per Share    (10.48)p   (12.61)p   (15.80)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 2022            3,055          64                279        37                29      3,464 
------------------------  -------  ----------  -----------------  --------  ----------------  --------- 
 At 30 June 2021            3,055         161                743        77               117      4,153 
 At 31 December 2021        3,055         111                511        50                73      3,800 
------------------------  -------  ----------  -----------------  --------  ----------------  --------- 
 
 
   7)   PROPERTY, PLANT AND EQUIPMENT 
 
                           Land and buildings   Office and computer equipment      Total 
                                     GBP000's                        GBP000's   GBP000's 
------------------------  -------------------  ------------------------------  --------- 
 Net book value 
------------------------  -------------------  ------------------------------  --------- 
 As at 30 June 2022                       222                             628        850 
------------------------  -------------------  ------------------------------  --------- 
 As at 30 June 2021                       274                             568        842 
 As at 31 December 2021                   237                             667        904 
------------------------  -------------------  ------------------------------  --------- 
 
   8)   TRADE AND OTHER RECEIVABLES 
 
                                    Unaudited     Unaudited       Audited 
                                  30 Jun 2022   30 Jun 2021   31 Dec 2021 
                                      GBP'000       GBP'000       GBP'000 
-------------------------------  ------------  ------------  ------------ 
 Current 
 Trade receivables                      4,380         2,507         2,609 
 Less provision for impairment          (467)         (487)         (549) 
-------------------------------  ------------  ------------  ------------ 
 Net trade receivables                  3,913         2,020         2,060 
 Prepayments                              526           497           325 
 Contract assets                        1,888           988         1,502 
 Total                                  6,327         3,505         3,887 
-------------------------------  ------------  ------------  ------------ 
 

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 administration 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 2021                                     1,111                             158     1,269 
 Additions                                                        188                               -       188 
 Depreciation                                                   (260)                            (36)     (296) 
--------------------------------  -----------------------------------  ------------------------------  -------- 
 Balance as at 31 December 2021                                 1,039                             122     1,161 
 Depreciation                                                   (172)                            (46)     (218) 
--------------------------------  -----------------------------------  ------------------------------  -------- 
 Balance as at 30 June 2022                                       867                              76       943 
 

Lease liabilities

Lease liabilities are presented in the statement of financial position as follows:

 
                  Unaudited     Unaudited       Audited 
                30 Jun 2022   30 Jun 2021   31 Dec 2021 
                   GBP000's      GBP000's       GBP'000 
-------------  ------------  ------------  ------------ 
 Current                418           516           431 
 Non-current            530           931           735 
                        948         1,447         1,166 
-------------  ------------  ------------  ------------ 
 

10) TRADE AND OTHER PAYABLES

 
                                      Unaudited     Unaudited       Audited 
                                    30 Jun 2022   30 Jun 2021   31 Dec 2021 
                                        GBP'000       GBP'000       GBP'000 
---------------------------------  ------------  ------------  ------------ 
 Current 
 Trade payables                           1,297           945           764 
 Other payables                              67           657           133 
 Other taxes and social security            770           296         1,348 
 Accruals                                 3,296         2,989         3,486 
 Contract liabilities                     1,870         1,100         1,068 
 Total                                    7,300         5,987         6,799 
---------------------------------  ------------  ------------  ------------ 
 

The Directors consider that the carrying amount of trade and other payables approximates to their fair value. The Group's payables are unsecured.

11) SHARE CAPITAL

 
                                         Unaudited Half Year          Unaudited Half Year           Audited Year 
                                             to 30 Jun 22                 to 30 Jun 21             To 31 Dec 2021 
                                                           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                    16,200,919             20    15,963,039             20   15,963,039        20 
 Shares issued                                  -              -       237,880            0.3      237,880       0.3 
 At end of period                      16,200,919             20    16,200,919             20   16,200,919        20 
-----------------------------------  ------------  -------------  ------------  -------------  -----------  -------- 
 
 Total called up share capital         16,200,919             20    16,200,919             20   16,200,919        20 
-----------------------------------  ------------  -------------  ------------  -------------  -----------  -------- 
 
 

12) POST BALANCE SHEET EVENTS

Acquisition of The Edge Picture Company and capital fundraise

The Company announced in August 2022 that it had acquired The Edge Picture Co Limited, one of the largest brand and corporate film making production companies in the UK, for an initial consideration of GBP1.56 million in cash and GBP0.54 million satisfied by the issue of 540,000 new ordinary shares in the Group, and deferred consideration of up to a further GBP3.875 million to be satisfied by a combination of cash and ordinary shares in the Company.

The Company also announced in August 2022 that it had raised GBP5.0 million (before expenses) by way of a placing of 5,037,059 ordinary shares.

The proceeds of the placing were used to finance the initial cash consideration due in respect of the acquisition and will also provide additional growth capital for the enlarged business.

[1] Adjusted EBITDA defined as EBITDA before share based payment charge, profit/loss on disposal of fixed assets and exceptional items.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR LRMATMTMTBLT

(END) Dow Jones Newswires

September 28, 2022 02:00 ET (06:00 GMT)

Zinc Media (AQSE:ZIN.GB)
過去 株価チャート
から 11 2024 まで 12 2024 Zinc Mediaのチャートをもっと見るにはこちらをクリック
Zinc Media (AQSE:ZIN.GB)
過去 株価チャート
から 12 2023 まで 12 2024 Zinc Mediaのチャートをもっと見るにはこちらをクリック