Zinc Media Group PLC - Trading and COVID-19 Update
Trading and COVID-19 Update
In May the Group announced:
The Group today reports:
· It is resuming previously paused production faster than forecast
· It has won a further
· It has implemented a programme of permanent cost reductions which will generate annualised savings of
· It has closed the loss making CSR business, which accounts for a substantial amount of the Group's losses
· It is increasingly likely revenues in July to
· 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
· Cash is currently
The Group's transformation plan remains on track with good progress being made on all the strategic KPIs underpinning the plan.
Resumption of production and new business won
Across the Group there are more than 20 programmes in pre-production or production. These include the resumption of a major new series for the Smithsonian Channel, The curious life and death of…, the ongoing series Police Code Zero: Officer Under Attack for
Futher to this, the
In addition, the Group's pipeline continues to rebuild with
Transformation of Zinc Communicate
Further progress is being made in the transformation of the Group's content production division Zinc Communicate:
· The loss making CSR business, which accounted for a substantial amount of the Group's losses in the 12 months to
· The publishing business is re-building sales faster than previously forecast with revenues for June at over 90% of pre-Covid levels; and
· Zinc has launched a new branded content business which will create programmes and content for advertisers and brands, and support the Group's traditional TV business with potential new revenue models.
The branded content business will leverage all the experience within Zinc's TV businesses to deliver high quality, brand-funded, unscripted film and audio content across television and digital platforms. In times of economic contraction brands and advertisers look to make their spend go further, and brand-led content, content marketing, and advertiser funded programmes are coming to the fore again.
Cost savings and cash management
Costs continue to be managed by reduction in hours and furloughing, with costs in June 20% lower than pre-Covid levels. Previously the Group reported costs in April and May that were 31% lower than pre-Covid levels. Non-executive Directors took no pay between April and June and senior management, including the CEO, took pay cuts of up to 40% during the same period. A programme of permanent cost savings of
The Group's cash balance at 20 July was
In February shareholders approved a capital reduction. This process, which requires court approval and was delayed by Covid-19, is now expected to conclude in August. This will result in the Group having distributable profits, which is an eligibility criterion for government backed loans.
The Group will report its interim results for the six month period ending
"The progress since the 21st May has been encouraging. With TV production activity resuming and stronger sales in June in our new Zinc Communicate division we are in a better position than we had anticipated two months ago. I would like to thank all our staff and freelancers who have been so resilient through lockdown. There remain significant challenges ahead, and forecasting is exceptionally challenging, but we continue to win new business, improve our margins, attract new talent, and reduce our costs. The changes and improvements we said we would make in our transformation plan are firmly on track."
For further information, please contact:
Will Sawyer, CFO
N+1 Singer (NOMAD and Broker to Zinc Media) +44 (0) 20 7496 3000
Mark Taylor / Harry Mils
Notes to Editors
The six award winning and critically acclaimed television production labels include: Blakeway, Brook Lapping, Films of Record, Blakeway North, Reef Television and Tern Television, whose brands produce television and radio programmes for both UK and international broadcasters.
The Zinc Communicate division comprises all the Groups content making divisions outside its TV labels. This includes the former Ten Alps Communication division now known as Zinc Communicate - Publishing which also houses a new video marketing division, and Zinc Communicate - Branded Content which produces content for brands, advertisers, agencies and media owners.
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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