Zinc Media Group - Update
New transformation plan announced by highly experienced management team to grow revenues to £100m in the long-term
Zinc Media is an AIM listed TV production and multimedia communications content business specializing in factual production. The company operates through the three divisions of television production, communications content and publishing.
2019 financial year sees new heavyweight management team join
In October 2018 Will Sawyer joined as Chief Financial Officer and in April 2019 Mark Browning joined as CEO. Sawyer and Browning have a proven track record of transforming underperforming TV businesses into highly profitable companies, working together for many years at ITN Productions which they helped grow to one of the top 5 independent TV productions companies in the UK.
New strategic plan to create a sustainably profitable content creation company and scale to turnover of £100 million in the long-term
To transform the business in the long-term a new strategic plan will focus on four factors: improving the gross margins of television production, revenue growth and diversification, cultural & creative renewal and investment in operational excellence.
Potential for significant increase in value
At the current time we are not putting forecasts into the market for Zinc Media but expect to do so in due course once the finer elements of the strategic plan are finalized. Until then, we note that the track record of the new management team is highly impressive and if Mark Browning and Will Sawyer can repeat their success at ITN with Zinc then we believe the current market cap of just under £5 million could be many multiples of that in the coming years.
RISK WARNING & DISCLAIMER
Zinc Media is a research client of Align Research. Align Research holds an interest in the shares of Zinc Media. Full details of our Company & Personal Account Dealing Policy can be found on our website http://www.alignresearch.co.uk/legal/
For full disclaimer information please refer to the last page of the full document. This investment may not be suitable for your personal circumstances. If you are in any doubt as to its suitability you should seek professional advice. This note does not constitute advice and your capital is at risk. This is a marketing communication and cannot be considered independent research.
| Year to June | 2016A | 2017A | 2018A | 2019A |
|---|---|---|---|---|
| Revenues (£m) | 22.62 | 19.76 | 21.68 | 24.63 |
| Adj. EBITDA (£m) | (0.43) | 0.44 | 0.49 | 0.13 |
| EPS (p) | (0.91) | (0.01) | (0.17) | (0.20) |