Zinc Media Group PLC - Trading and COVID-19 Update
Trading and COVID-19 Update
The health and safety of our staff is our utmost priority and from the start of lockdown in March, staff were working remotely in line with government advice. Production filming has been paused during lockdown, but post production continues with editors working from home, and pre-production continues. New pitches and commissioner meetings continue via online video meetings.
The Group has continued with it transformation plan announced in
1. Revenue Growth and Diversification
The Group continues to win new commissions during the lockdown (which remains more strict in
The Group is steadily rebuilding its pipelines across all its TV labels with programmes that can be produced under social distancing measures. It has a further
Broadcasters' commissioning budgets have been reduced as a result of Covid-19, with drama and sport most impacted. Unscripted factual television has also been impacted but is likely to be more Covid-19 resilient and will help meet demand in television schedules. The Group is anticipating revenues to be 40% down on pre-Covid levels in the period July-
In April and May
2. Margin improvement in
Margin improvements continue to be maintained despite lockdown and social distancing restrictions.
Gross production margins of
3. Cultural and Creative renewal
Critical new business hires have been made across the Group, and additional recruitment is well advanced in TV and the newly enlarged Zinc Communicate which now includes the former publishing business,
A new business winning Creative Director has been hired in Blakeway London and starts in June with a remit to continue to diversify revenues across the division having previously won business from Sky, YouTube and Vice, none of which are currently customers of Zinc.
A new business winning hire in B2B video started in April and a new business winning hire to lead a new Branded Content division is being recruited. Both these markets continue to see spend as brands redirect their reduced budgets away from traditional advertising.
4. Investment in operational excellence
The move to new headquarters, on a lower cost base, has been completed and it is eady for occupation as lockdown is eased. This will provide a vastly improved creative environment and a new post production facilities to enhance future margin improvement. The initial rent free period has the advantage of helping with short term cash flow.
The recent investments in Group HR and improved finance systems have also greatly assisted management in the Covid-19 crisis.
The Group's cash balance at 30 April was
"I am pleased that the transformation plan for the Group remains on track. Despite the Covid-19 pandemic having forced us to change our planned route in some of our businesses, the end destination remains the same. Forecasting is exceptionally challenging given the economic uncertainty but we continue to win business across the Group, margins are improving and we have reduced costs. This gives us the best possible chance of delivering success in highly unpredictable times."
For further information, please contact:
N+1 Singer (NOMAD and Joint Broker to Zinc Media) +44 (0) 20 7496 3000
Notes to Editors
The six award winning and critically acclaimed television production labels include: Blakeway,
Zinc Communicate specialises in creating B2B communications strategies and behaviour change programmes, campaigns and resources for partners, businesses and government departments.
For further information on Zinc Media please visit: http://www.zincmedia.com/
This information is provided by RNS, the news service of the
Quick facts: Zinc Media
Market Cap: £4.69 m
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