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Zinc Media Expects To Return To Profit After Restructuring Business

LONDON (Alliance News) - Zinc Media Group PLC, a television and multimedia content producer, ...

Alliance News 17 July, 2017 | 12:53PM
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LONDON (Alliance News) - Zinc Media Group PLC, a television and multimedia content producer, said it expects to report a swing to full-year profit after restructuring its business.

Shares in Zinc were up 13% to 0.98 pence on Monday.

The television and multimedia content company said for the “first time in recent years” Zinc Media has returned to profitability and expects to report an adjusted earnings before interest, tax, depreciation and amortisation for the year ended June 30 of GBP300,000.

For the financial year ended June 30, 2016 Zinc Media reported adjusted Ebitda loss of GBP430,000, a pretax loss of GBP3.7 million and revenue of GBP22.6 million.

During the financial year, Zinc Media exited the majority of its publishing businesses, which as a division was operating unprofitably, to enable the company to focus on the television production and digital communications divisions.

Zinc Media said restructuring has positioned the business "strongly" for the current financial year and beyond and it believes that profitability will increase "substantially".

The television division is continuing to win commissions, Zinc Media said, with longer running series, bigger budgets and new international broadcaster relationships. The division recently gained a 2017 BAFTA nomination for 'Inside Obama's White House' and five awards at the EVCOM Screen Awards for a short form film.

The division also has a "strong" order book and since the start of the new financial year on July 1 Zinc Media has had GBP6.5 million worth of content commissioned, 76% higher than GBP3.7 million at the beginning of the previous financial year.

Zinc Media added that all ongoing divisions traded profitably during the last financial year and this is expected to continue in the current year.

By Maryam Cockar; maryamcockar@alliancenews.com; @MaryamCockar

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Zinc Media Group PLC 0.83 GBX 0.00 -
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