MediaZest performs 'well' in second half

20th Oct 2022 17:14

(Sharecast News) - Audio-visual specialist MediaZest said in a trading update on Thursday that its operations performed "well" in its second half, and that it expected results for the year just ended would show a "significant" year-on-year improvement.

The AIM-traded firm said year-end cash levels as at 30 September were "consistent" with the end of the first half on 31 March.

It said demand across key sectors including retail, automotive and corporate office spaces was "encouraging", with many long-term clients including Pets at Home, Lululemon, Hyundai, Ted Baker and HMV progressing roll-out programmes and ongoing works.

Recent new installations, events and several upcoming opportunities within the EU had been "consummated", the board reported, with several delivered during the financial year, including projects in Spain, the Netherlands, France and Germany.

As referenced in its interim results, in order to deliver solutions and services more efficiently to those clients, MediaZest had started the process of establishing an EU-based subsidiary, which was expected to be finished in the current quarter.

Recurring revenue contracts were performing "well", and the group said it had continued to build on success in that area in recent years.

"The board is pleased with recent progress as the Group bounced back from the challenges of Covid-19, and is encouraged by the outlook for the short term," the directors said in their statement.

"Looking further ahead, the board remains vigilant for signs of a slow-down in client activity due to macro-economic uncertainty in the UK coupled with global financial headwinds, and maintains flexibility in its cost base where possible whilst balancing its ambitions for further growth."

MediaZest said differentiating its offering by emphasising new revenue streams such as data collection and analysis, alongside its "high standards" of project delivery it was known for, was considered "key" to building on its recent progress.

"The board continues to evaluate the potential for acquisitions to grow the group, should an appropriate opportunity arise.

"Management remains active in this area whilst remaining committed to pursuing such a transaction only should tha be sufficiently attractive to shareholders in the current environment."

MediaZest said it expected to complete its year-end audit in December and January, and would announce its final results for the year ended 30 September shortly after that.

At 1537 BST, shares in MediaZest were up 3.85% at 0.07p.

Reporting by Josh White at Sharecast.com.