Zinc Media Group (LON:ZIN), a leader in the media production industry, has demonstrated resilience amidst a challenging year, with exciting prospects for the future. Despite a quieter first half (H1), the company is well-positioned to close out 2024 on a strong note, thanks to recent commission wins and an optimistic outlook for H2.
Zinc’s H1 results reflect wider industry trends, with sales down by 20% year-on-year, a consequence of budget delays across the media sector. This caused a dip in EBITDA, moving from a positive £0.6m to a loss of £0.9m. However, this should not overshadow the company’s growth potential. In fact, Zinc’s position is improving, with new business significantly boosting visibility for both this year and next. According to Harold Evans, “Zinc’s current direction of travel is very positive.”
Despite the setbacks in H1, Zinc Media’s sales forecast for the second half is expected to grow by 13%, driven by the improved market environment. A number of key productions, including Top Gun and Paid in Full, were delayed rather than cancelled, shifting revenues from H1 to H2. This positions the company for a much stronger performance in the latter half of the year.
Looking ahead, Zinc’s revenue visibility has improved significantly. As of June, visibility stood at £28m, but by the time of this report, it had increased to £33m, with a further £5m in a highly advanced pipeline that could raise the total to £38m. This growing pipeline highlights the company’s potential to hit its sales and profit targets for the full year. James Musker commented on this, stating that, “if Zinc delivers on the top-line, the company should also hit target profits.”
Beyond the immediate financials, Zinc Media Group’s longer-term prospects remain solid. The company is strategically well-positioned, with strong execution that has allowed it to outperform the broader media sector. The longer-term growth trajectory is encouraging, with FY25 expected to return to growth, backed by a robust foundation and a clear vision for continued profitability.
On a Final Note, Zinc Media Group’s ability to navigate a challenging year with minimal disruption to its longer-term strategy is a testament to the company’s resilience and growth potential. The second half of 2024 holds significant promise, and with a strong pipeline in place, Zinc is ready to finish the year on a high, building momentum for 2025 and beyond.
