Shares in MediaZest PLC (LON:MDZ) received a boost in early trading as it reported a swing to profit in a trading update for the first quarter.
The AIM-listed audio-visual company reported a net profit of £75,000 for the period, up from a £127,000 loss a year ago, while turnover climbed to £990,000 from £563,000.
READ: MediaZest plunges as project delays cause massive drop in earnings
As a result, the firm added that it expected half-year net profits to be around £90,000 compared to a £149,000 loss the previous year, with revenues expected to rise to around £1.8mln from £1.3mln.
MediaZest said the results reflected increasing levels of recurring revenues in addition to a number of “significant new clients and projects” that had been secured since the end of the previous year.
The update will come as a relief to investors following a disappointing set of full-year results in August when the group’s underlying (EBITDA) loss ballooned to £113,000 from £2,000 in 2017 while revenues declined 6% to £2.8mln.
At the time, the firm said delays to three of its “substantial projects” to the 2019 financial year had caused the widened loss, although this wasn’t enough to stop the share price dropping 11% on the day.
In early morning trading, MediaZest shares were up 15% at 0.12p.