Business
Align Research Initiation of Coverage
Align Research Initiation of Coverage.
About this update from Zinc Media Group Plc
[{"type":"text","content":"\n \nRNS Number : 2908X Zinc Media Group PLC 23 November 2017 \n\nZinc Media - Initiation of Coverage. Conviction Buy. Price target 1.32p\nFactual TV production specialist set to become a \"super-indie\"\n Zinc Media is an AIM listed TV production and multimedia communications content business which is focusing on becoming one of the UK's leading independent factual TV producers.\nRe-structured and re-focused\nOver the past two years Zinc has restructured its operations via the appointment of a new senior management team, closure of loss making publishing operations and restructuring of debt. The corporate strategy is now focused upon growing the business, organically and by acquisition, into one of the UK's leading independent factual TV producers.\nConsolidation under way via two complementary acquisitions\nIn line with its strategy to consolidate the fragmented UK TV production industry, Zinc completed the reverse takeover of Reef Television in July 2015. This was followed in November 2017 by the acquisition of Tern Television Productions. Based in Scotland & Northern Ireland, Tern is expected to benefit from growth in regional programming, with the deal forecast to be earnings enhancing in FY2018.\nResults for 2017 highlight the benefits of the restructure and point towards strong growth in 2018\nFor FY2017 the company achieved profitability at the EBITDA level on an annual basis for the first time since 2010. With the order book being 76% higher in the TV division compared to the end of 2016, significantly increased profits are expected in FY2018.\n Transaction based valuation multiple suggests minimum upside of 60%\nBased on recent industry transactions we set an end 2019 fair value price target of 1.32p per share, 60% higher than the current price. We see this as a base case scenario, with potential for further value to be derived. We therefore initiate coverage of Zinc Media with a Conviction Buy stance and a 1.32p price target.\nTo read the full note visit http://www.alignresearch.co.uk/cpt-company/zinc-media/\n\nThis information is provided by RNSThe company news service from the London Stock Exchange END NRAFMMZMGZLGNZZ\n ","length":2768,"tagName":"div"}]