New management, fully in place since May’19, have announced an ambitious new two-phase strategy aimed at turning Zinc Media into a sustainably profitable business generating >£100m in revenues in the long-term. (FY’19: £24.6m). The Group has strong industry relationships, quality brand reputation across Premium and Popular unscripted Factual content and a new proven management team in place since May’19. FY’19 results to June show positive sales momentum building which has rolled into FY’20 (Sept’19: £4.8m commissions won), yet EBITDA margins contracted (0.5%; FY’18: 2.3%; industry: 5-10%). We are highly encouraged by new management and the transformation agenda which makes margins improvement core to culture and strategy. With implementation at an early stage however we are not reintroducing forecasts at this time. Current valuation reflects historic performance but not future positive optionality and represents an opportunity for those with higher risk appetite.
