Business
Trading and COVID-19 Update
Trading and COVID-19 Update.
About this update from Zinc Media Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 0941U\n Zinc Media Group PLC\n 27 July 2020\n \n \n \n \n 27th July 2020\n \n \n \n \n \n Zinc Media Group plc (\"Zinc Media\" or the \"Company\")\n \n \n \n \n \n Trading and COVID-19 Update\n \n \n \n \n \n Zinc Media Group plc (AIM: ZIN), the TV and multimedia content producer, is pleased to announce continued good progress on its transformation plan and better than previously forecast revenues since lockdown.\n \n \n \n \n \n In May the Group announced:\n \n \n \n \n \n · \n £2m of TV production had been paused due to Covid; \n \n \n · \n £2.5m of new production won during lockdown (April/May); and \n \n \n · \n £6m of new business opportunities were highly advanced with clients\n \n \n \n \n \n The Group today reports:\n \n \n \n \n \n · \n It is resuming previously paused production faster than forecast\n \n \n · \n It has won a further £2.7m of new business since the last update on 21st May\n \n \n · \n It has implemented a programme of permanent cost reductions which will generate annualised savings of £0.7m per annum compared to pre-Covid levels which, when combined with the ongoing improvements in television margins currently of 4.7%, further positions the Group to be profitable from 2021 and cash generative in the second half of 2021 \n \n \n · \n It has closed the loss making CSR business, which accounts for a substantial amount of the Group's losses\n \n \n · \n It is increasingly likely revenues in July to December 2020 will be better than forecast on 21st May\n \n \n · \n It has launched a new branded content division which provides timely opportunities in bigger, more resilient markets as well as being synergistic with the TV business and providing opportunity for efficiencies through shared resources\n \n \n · \n Cash is currently £3.7m and the completion of a capital reduction process will enable the Group to pursue the possibility of a government backed loan to help fund the Group's transformation plan\n \n \n \n \n \n The Group's transformation plan remains on track with good progress being made on all the strategic KPIs underpinning the plan. \n \n \n \n \n \n Resumption of production and new business won\n \n \n \n \n \n Across the Group there are more than 20 programmes in pre-production or production. These...