Zinc Media expects better than forecast revenues following lockdown

27th Jul 2020 08:06

(Sharecast News) - TV and multimedia content producer Zinc Media said on Monday that it had experienced continued good progress on its transformation plan and better than previously forecast revenues since Downing Street's coronavirus-related lockdown.
While Zinc said £2m worth of TV production had been halted as a result of Covid-19, the group said previously paused work was now resuming faster than initially forecast.

The AIM-listed group added that it had won a further £2.7m of new business since 21 May and had implemented a programme of permanent cost reductions, generating savings of £700,000 per year compared to pre-Covid-19 levels.

Revenues between July and December were also now expected to be better than forecast.

Chief executive Mark Browning said: "With TV production activity resuming and stronger sales in June in our new Zinc Communicate division we are in a better position than we had anticipated two months ago.

"There remain significant challenges ahead, and forecasting is exceptionally challenging, but we continue to win new business, improve our margins, attract new talent, and reduce our costs. The changes and improvements we said we would make in our transformation plan are firmly on track."

As of 1030 BST, Zinc shares had surged 24.29% to 52.82p.