Mark Browning of Zinc Media: H1 revenue up 68% and H2 pipeline looks good
Episode 1651, Oct 04, 2023, 10:35 AM
Mark Browning, CEO of Zinc Media Group #ZIN discusses their interim results, which saw revenue increase by 68% (12% organically) and says they are confident of hitting market expectations for the year with a strong pipeline of work already contracted.
Highlights
The Group is pleased to report excellent progress in H1 2023 and continues to trade in line with market expectations for the current financial year. The first half of 2023 includes the following highlights:
· Revenue of £18.1m (H1 2022: £10.8m), an increase of 68% year-on-year.
o Organic revenue growth (i.e. all businesses excluding The Edge) of 12% and a strong customer base providing continuing high net revenue retention
o Growth in both TV and Content Production revenue
o The Edge continues to perform ahead of acquisition expectations
· Adjusted EBITDA1 profit of £0.2m compared to an Adjusted EBITDA profit of £0.1m in the whole prior financial year (H1 2022: loss of £0.6m).
· Gross margins in the period were significantly up at 41% (H1 2022: 33%).
· Cash of £5.8m at 30 June 2023 is £2.2m higher than at 31 December 2022 due to working capital inflows.
· As at 25 September 2023, total revenue won and expected to be recognised in FY23 is £35m. This is an increase of £4m since the last trading update in July 2023 and an improvement of £8m compared to the same point in 2022 in relation to that financial year.
· With £35m of revenue already won and expected to be recognised this year, revenue for the whole year will significantly exceed the £30m of revenue generated in FY22.
· The Group's pipeline remains strong with a further £7m of revenue that can be recognised in FY23 in highly advanced discussions.
· Loss before tax in the period of £1.6m (H1 2022: £1.8m) is mainly driven by costs relating to the acquisition of The Edge (revaluation of deferred consideration due to The Edge's strong performance, amortisation, unwinding of discounted deferred consideration), depreciation and finance costs resulting from The Edge being in the Group this period, plus depreciation and finance costs.
TO READ THE FULL RNS CLICK HERE
Highlights
The Group is pleased to report excellent progress in H1 2023 and continues to trade in line with market expectations for the current financial year. The first half of 2023 includes the following highlights:
· Revenue of £18.1m (H1 2022: £10.8m), an increase of 68% year-on-year.
o Organic revenue growth (i.e. all businesses excluding The Edge) of 12% and a strong customer base providing continuing high net revenue retention
o Growth in both TV and Content Production revenue
o The Edge continues to perform ahead of acquisition expectations
· Adjusted EBITDA1 profit of £0.2m compared to an Adjusted EBITDA profit of £0.1m in the whole prior financial year (H1 2022: loss of £0.6m).
· Gross margins in the period were significantly up at 41% (H1 2022: 33%).
· Cash of £5.8m at 30 June 2023 is £2.2m higher than at 31 December 2022 due to working capital inflows.
· As at 25 September 2023, total revenue won and expected to be recognised in FY23 is £35m. This is an increase of £4m since the last trading update in July 2023 and an improvement of £8m compared to the same point in 2022 in relation to that financial year.
· With £35m of revenue already won and expected to be recognised this year, revenue for the whole year will significantly exceed the £30m of revenue generated in FY22.
· The Group's pipeline remains strong with a further £7m of revenue that can be recognised in FY23 in highly advanced discussions.
· Loss before tax in the period of £1.6m (H1 2022: £1.8m) is mainly driven by costs relating to the acquisition of The Edge (revaluation of deferred consideration due to The Edge's strong performance, amortisation, unwinding of discounted deferred consideration), depreciation and finance costs resulting from The Edge being in the Group this period, plus depreciation and finance costs.
TO READ THE FULL RNS CLICK HERE