Zinc Media Group plc (LON:ZIN) has announced its audited results for the year ended 31 December 2021.
Headlines
The Group has reported significant progress in 2021, including the following highlights:
· Revenues for the year to 31 December 2021 (“FY21”) of £17.5m (18 months ended 31 December 2020: £30.6m), with H2 2021 revenues increasing by 50% to £10.5m (H1 2021: £7.0m).
· Adjusted EBITDA1 loss for the year of £0.6m (18 months ended 31 December 2020: £0.8m loss), with H2 2021 Adjusted EBITDA[1] profit of £0.5m (H1 2021 : £1.1m loss).
· The Group generated Free Cash Flow[2] of £0.5m in H2 2021.
· The balance sheet has remained strong with cash of £5.6m at the end of the year, and £4.2m as of 14 April 2022. There was a net cash outflow of £1.2m during the year (18 months ended 31 December 2020: net inflow of £3.6m).
· As of 14 April the Group has booked £13m of revenue which is expected to deliver in 2022, an increase of £4m since February.
· The Group has a healthy pipeline of potential new business for 2022 totalling £35m which could deliver in 2022, of which £8m is at a highly advanced stage. Within the highly advanced opportunities is a potential multi-million pound commission for a global streamer for which the Group has already received £0.4m of funding.
· TV production gross margins increased by a further 7.6% to 37.2% in the 12 months to December 2021. This is 12.5% higher than when the current management joined the Group in FY19 and equates to a £2m improvement in profitability based on pre-Covid-19 revenues.
· The Group delivered a number of significant programme successes during the year, which included:
o a multi-million pound 52-episode returning series with Channel 5
o the Group’s first major new series for the Discovery Group
o the Group’s first Advertiser funded TV series
o the Group’s first Advertiser funded podcast series
o the Group’s first audio commission from Amazon Audible
o the Group’s first funded development for one of the world’s biggest SVoD (subscription video on demand) platforms; and
o the launch of new TV label Supercollider which won new business from Red Bull and Lego
· The Group has continued to diversify its revenue base. Five new businesses have been launched during 2020 and 2021 to propel the Group into new content creation areas which collectively have generated £5m, or 29%, of Group revenue in the year.
· Zinc Communicate accounted for 17% of Group revenue in the year, almost double the proportion in FY20.
· The biggest TV division, in London and Manchester, made a profit at the Adjusted EBITDA level for the first time since 2017.
Mark Browning, CEO of Zinc Media Group, said:
“We are very encouraged by the Group’s performance this year which positions it well for sustained growth and profitability in the years ahead. Revenue is growing again, our margin performance is outstanding, we are diversifying into new content markets, the business was cash generative in H2 2021 and our pipeline shows the largest amount of advanced business in the last three years. Our balance sheet is strong, which will allow us to make further investments for long term growth. Our teams throughout the UK have worked exceptionally hard to achieve these results and we can look forward to future years with confidence and ambition.”
Copies of the annual report and accounts
The annual report and accounts is available on the company’s website at www.zincmedia.com and a hard copy will be posted to those shareholders registered to receive one.
Notice of annual general meeting
Accompanying the accounts is notice of the Company’s 2022 annual general meeting (the “AGM”), which will take place at 10.00am on 26 May 2022 at Singer Capital Markets’ offices at 1 Bartholomew Lane, London, EC2N 2AX.
For those shareholders intending to attend the AGM please be mindful of any UK Government Covid-19 guidance in place prior to the meeting. If circumstances should change materially before the date of the meeting, the Company may adapt the proposed arrangements, working in accordance with UK Government guidelines and mindful of public health concerns. If there are material changes, the Company will provide updates as early as possible before the date of the meeting through a Regulatory Information Service and the Company’s website at www.zincmedia.com/investors. Shareholders are advised to check the Company’s website regularly for updates.
