Zinc Media - Full Year Update 

 


New transformation plan announced by highly experienced management team to grow revenues to £100m in the long-term

- 2019 financial year sees new heavyweight management team join In October 2018

Will Sawyer joined as Chief Financial Officer and in April 2019 Mark Browning joined as CEO. Sawyer and Browning have a proven track record of transforming underperforming TV businesses into highly profitable companies, working together for many years at ITN Productions which they helped grow to one of the top 5 independent TV productions companies in the UK.

- New strategic plan to create a sustainably profitable content creation company and scale to turnover of £100 million in the long-term

To transform the business in the long-term a new strategic plan will focus on four factors: improving the gross margins of television production, revenue growth and diversification, cultural & creative renewal and investment in operational excellence.

- Potential for significant increase in value

At the current time we are not putting forecasts into the market for Zinc Media but expect to do so in due course once the finer elements of the strategic plan are finalized. Until then, we note that the track record of the new management team is highly impressive and if Mark Browning and Will Sawyer can repeat their success at ITN with Zinc then we believe the current market cap of just under £5 million could be many multiples of that in the coming years.

Table: Financial Overviev

Year to Jun

2016A

2017A

2018A

2019A

Revenue (£m)

22.62

19.76

21.68

24.63

Pre-tax (£m)

(0.43)

0.44

0.49

0.13

EPS (p)

(0.91)

(0.01)

(0.17)

(0.20)

Source: Company accounts

 

UPDATE

 

Key data

Share price

0.335p

52 week high/low

0.5p/0.235p

Exchange

AIM

EPIC

ZIN

Shares in issue

1,429,113,435

Market Cap

£4.8m

Sector

Media

IMPORTANT: Zinc Media is a research client of Align Research. Align Research owns shares in Zinc Media. For full disclaimer information please refer to the last page of the full document.

Click to Download Full Report

 

 

T.+44 (0)203 609 0910
E. info@alignresearch.co.uk

Align Research, 7 Moorhead Lane, Shipley, BD18 4JH

www.alignresearch.co.uk

This is a marketing communication and cannot be considered independent research. Nothing in this report should be construed as advice, an offer, or the solicitation of an offer to buy or sell securities by us. As we have no knowledge of your individual situation and circumstances the investment(s) covered may not be suitable for you. You should not make any investment decision without consulting a fully qualified financial advisor.

Your capital is at risk by investing in securities and the income from them may fluctuate. Past performance is not necessarily a guide to future performance and forecasts are not a reliable indicator of future results. The marketability of some of the companies we cover is limited and you may have difficulty buying or selling in volume. Additionally, given the smaller capitalisation bias of our coverage, the companies we cover should be considered as high risk.

This financial promotion has been approved by Align Research Limited. Align Research has made every reasonable effort to ensure the accuracy of the information in our research reports although this cannot be guaranteed. Align Research is authorised & regulated by the Financial Conduct Authority. FRN No - 768993.