Zinc Media Group plc (LON:ZIN), the award-winning television, brand and audio production group, has announced its audited results for the year ended 31 December 2022.
The Group is pleased to report excellent progress for FY22, including the following highlights:
Financial highlights
• Revenue and Adjusted EBITDA ahead of market expectations, with the Group profitable at Adjusted EBITDA level
• Revenue increased 72% to £30.1m (FY21: £17.5m) and marks the highest revenue the Group has generated in the last ten years
• Organic revenue growth of £6.8m or 39% year-on-year, reflecting the investment in new businesses and contracts
• H2 revenues increased 83% to £19.2m (H2 2021: £10.5m)
• Approximately 80% of revenue was delivered from existing customers, up from 69% in FY21
• Adjusted EBITDA of £0.1m, compared to a loss of £0.6m in FY21
• Strong H2 2022 performance with Adjusted EBITDA of £0.7m
• £3.6m of cash at 31 December 2022 and £4.6m as at 19th April 2023
• Loss before tax of £3.3m (FY21: £2.6m) is largely driven by acquisition costs related to The Edge acquisition in the year and amortisation related to previous acquisitions
Operational highlights
• The successful acquisition of The Edge in August 2022 has brought a quality, high margin business with significant repeat revenue
• The Edge is performing ahead of acquisition expectations, having achieved its best ever trading performance last year, generating £13m of revenue and £1.3m of profit before tax (of which £5.8m of revenue and £0.7m of profit before tax has been included in the Group’s consolidated results)
• The acquisition of The Edge has added considerable scale to the Group, with pro-forma revenues for the enlarged group of £37m in FY22
• The Group has been awarded “Production Company of the Year” at the prestigious New York Festival Film and Television Awards
Delivering a number of significant programme successes during the year
• Highly acclaimed documentaries that led the news agenda and got the nation talking include Putin vs The West, Tom Daley: Illegal to be me and Afghanistan: Getting out for the BBC
• Zinc’s largest ever volume commission, Bargain Loving Brits for Channel 5
• Programming with fresh talent and from new buyers such as Unprecedented for Discovery+, Space Jump for Red Bull, Martin Compston’s Scottish Fling for BBC, Spooked Ireland for Really, Naughty Tories for Channel 5 and Sunday Morning Live for the BBC
Current trading and outlook
• The Group is trading strongly with £26m of revenue already booked and expected to be recognised in FY23 (7 February 2023: £15m)
• In addition the Group’s pipeline remains strong with a further £6m of revenue at a highly advanced stage
• Together this provides the Board with confidence in delivering FY23 market expectations
• Integration of The Edge is progressing well: cross-divisional business development opportunities have been identified and the planned co-location with Zinc’s other London businesses later this year will enable cost savings and further synergies
Mark Browning, CEO of Zinc Media Group, commented:
“We are delighted to report a strong set of results for FY22: exceeding market expectations and revenues at a 10-year high. This is a great achievement and has been testament to the breadth and depth of our creative output. Performance in FY23 is very encouraging and there is a feeling of momentum and optimism around the Group. Zinc has a considerable pipeline of business and has already booked £26m of revenue to be recognised this year. As a result, the Board is positive for the outlook of the business and views the remainder of the year with confidence.”
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 annual report and accounts is notice of the Group’s 2023 annual general meeting, which will take place at 10.00am on 25 May 2023 at Singer Capital Markets’ offices at 1 Bartholomew Lane, London, EC2N 2AX.
