Business
Pre-close trading update
Pre-close trading update.
About this update from Mediazest Plc
[{"type":"text","content":"\n \nMediaZest Plc\n\n(\"MediaZest\", the \"Company†or “Group\"; AIM: MDZ)\n\nPre-close trading update\n\nMediaZest, the creative audio-visual company, is pleased to provide shareholders with a pre-close trading update including an update in respect of ongoing and new business.\n\nFinancial update\n\nThe Group finished the year ended 31 March 2016 with its best ever financial performance. A number of significant projects were delivered in that period, many of which the Board expects will continue and develop into the current financial year, along with other projects which have been rescheduled into the current financial year.\n\nThe Board expects turnover for the financial year of not less than £3.14 million (prior year £2.48 million) and, as a result of improvements in margins and reductions in overhead costs, a maiden positive full year EBITDA of approximately £50,000 (prior year EBITDA loss of £625,000) and a reduced retained loss of approximately £100,000 (prior year loss of £656,000).\n\nThese figures are subject to audit and do not yet include an accounting adjustment under IFRS2 (Share based payments) as a result of the Employee Share Option Scheme which was implemented during the year ended 31 March 2016. Whilst this item does not have any cash implications, it will adversely affect the year end result.\n\nCash in hand at 31 March 2016 was similar to the prior year end and the Group retains its banking facilities, including an invoice discounting arrangement of up to £500,000 (amount in use as at 31 March 2016, approximately £230,000).\n\nThe Board expects to announce final audited results in July 2016.\n\nTrading performance\n\nThe final quarter of the last financial year, January to March 2016, was as anticipated quieter than the previous three quarters. The rescheduling of several projects into the current financial year meant that full profitability for the year ended 31 March 2016 was not reached. However, current clients did continue to place business with us, and new customers including Estée Lauder and Mamas & Papas were signed up.\n\nRecurring revenues have grown strongly in the last 12 months, nearly doubling in that period. The Board’s intent is to continue to grow such revenues to provide greater predictability of income.\n\nThe Group has now deployed a further two face recogni...