Zinc Media Group PLC (AIM:ZIN), the TV production group behind 'Putin vs The West' and 'Bargain Loving Brits', has seen its share price gently tick up in the wake of last week's trading statement in which it revealed both revenues and the order book were at record levels.
Showing resilience in the face of some stiff industry headwinds, Zinc delivered sales to be recognised in the current year of around £38 million (with still a few weeks left), surpassing last year's £30 million and exceeding the September forecast by £3 million.
At the same time, it has already secured £14 million in revenue for FY24, a £6 million increase from the same period last year, indicating robust growth. And it's sitting on a record order book.
Ahead of the 27 November trading statement, consensus revenue and adjusted EBITDA forecasts for FY23 were £35.7 million and £1.0 million, respectively.
Despite industry pressures, including budget constraints from streaming platforms and advertisement-funded broadcasters and disruptions such as the industrial actions in the US, Zinc has maintained its growth trajectory and it has a record order book.
The company, established in 1981, has diversified its portfolio over the years, producing high-quality content across various genres and expanding into corporate films, podcasts and other media.
The company's ungeared balance sheet and an EV/EBITDA multiple of around 9 times for FY24F reflect its solid financial position and market appeal, Shore Capital said.
"We are encouraged to read another positive update from Zinc Media, which continues to forge ahead despite a degree of pressure on commissioning budgets across streaming platforms and ad-funded broadcasters and the industry-wide disruption caused by industrial action by US actors and screenwriters," the broker said in a note to clients.
"We regard this progress as testament to the group’s ability to secure and deliver high-quality commissions from global broadcasters and platforms across multiple genres and formats – all of which should underpin attractive medium-term growth."
The shares, up 5% at 92p in the last week, remain "modestly" priced "given the momentum", according to Shore.