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Chris Satterthwaite's Chime Communications was taken over for £374M. in 2015, compared to its 2014 revenue of about 386M., i.e. a valuation multiple of nearly one times revenues.
So a future valuation of about £100M. for ZIN is quite possible.
ZIN's annual revenue is already well over £20M., compared to a market cap. of a fraction of that.
And there's no reason why they can't move to making a good profit on that sort of revenue, if margins return to a level more in-line with industry norms.
That's the target, and good progress is already being made in that regard.
From Align Research, 30.9.19:
" ¦ 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."
http://www.alignresearch.co.uk/cpt-company/zinc-media/
New management is the key to a successful turnaround, so ZIN's new CEO and Chairman are key to the investment case here.
8th Feb 2019 7:00 am RNS Zinc Media Group PLC - Board Changes
"Further to the announcement on 7 December 2018 of the intended appointment of Mark Browning as Chief Executive Officer, the Company confirms that Mark will join the board and commence his role as CEO with effect from 23 April 2019. ..."
https://www.lse.co.uk/rns/ZIN/zinc-media-group-plc-board-changes-amisrrg7y8wjz5d.html
13th Jun 2019 7:00 am RNS Zinc Media Group PLC - Directorate Change
"The Board of Zinc Media is pleased to announce, following a comprehensive search, the appointment of Christopher Satterthwaite as Non-Executive Chairman of the Group. Christopher will join the Board of the Company with effect from 1 July 2019 and will facilitate an orderly transition with Peter Bertram, who retires from the Board and leaves the Group after over eight years as Chairman. The Board would like to thank Peter for his contribution to the business and wish him every success for the future.
Christopher has a wealth of experience in the media and communications space working with both private and listed businesses. Until 2017 Christopher was group CEO of Chime Communications, overseeing its sale to Providence Equity in 2015 for £374 million, having grown the business to a global sports entertainment and communications group employing over 2,500 people in 27 countries and delivered £250 million in shareholder value during his tenure. ..."
https://www.lse.co.uk/rns/ZIN/zinc-media-group-plc-directorate-change-imce76ktocl5aka.html
ZIN's recovery transition is being led by a new management team with a proven and very recent track record of transforming underperforming TV businesses into highly profitable companies.
That's a very important ingredient for a successful recovery situation.
And while the full benefit will probably not show until the next financial year, if there are clear signs of progress then the share price should start moving up much earlier in anticipation.
Especially from the current lowly valuation of 82.5p, a near 10% discount to the 90p placing price.
ZIN's interim results for July-December 2019 are due next month (announced on the 15th. March last year), and the signs are that they will be positive.
ZIN has already announced £9.3M. of new business wins for that period, and the December RNS was confident of improved margins:
10th Sep 2019 7:01 am RNS Zinc Media Group PLC - £4.8 million of New Commissions
"Zinc Media announces £4.8 million of new commissions for new financial year
Zinc Media Group plc (AIM: ZIN), the leading TV and multimedia content producer, is pleased to announce new commissions, contributing to the current financial year totalling £4.8m, including three returning series, across its portfolio of TV companies. ...
Mark Browning, Chief Executive Officer, commented:
"These commissions represent a strong start to the new financial year for our TV businesses. I am particularly pleased with the performance of Reef TV in the last few months, while Tern, Brook Lapping and Blakeway London continue to deliver strong commissions and build healthy pipelines for the rest of the year." ..."
https://www.lse.co.uk/rns/ZIN/zinc-media-group-plc-48-million-of-new-commissions-eiedw2hqd13ehgz.html
10th Dec 2019 7:00 am RNS £4.3m of new TV commissions
"Zinc Media announces £4.3 million of new TV commissions and improving gross TV margins
Zinc Media Group plc (AIM: ZIN), the leading TV and multimedia content producer, is pleased to announce new commissions secured since its 10 September 2019 announcement totalling £4.3m across its portfolio of television production labels, with new commissions anticipated to deliver improved margins more in-line with industry standards. ...
Mark Browning, Chief Executive Officer, commented:
"It's good to see the bulk of our TV labels booking steady revenues but more importantly I am pleased to see that new commissions are now anticipated to deliver improved margins which are more in-line with industry norms. Improving gross margins on TV commissions in London and Manchester is the first priority in our transformation plan and early signs show demonstrable progress, which is critical for our longer term profitability." ..."
https://www.lse.co.uk/rns/ZIN/43m-of-new-tv-commissions-6u5pkd6akyw6ecq.html
Strange time to release the rns . Details some info about directors share options. Lots of action unfortunately no action on the dead sp
Thanks to KMann on ADVFN for this excellent recent summary:
kMann 29 Jan '20 - 13:50 - 652 of 665 0 5 0
"net result of restructure, zero debt, funding, earn out paid on full.
£25-30 mil turnover, increasing margins.
looking at recent events in the sector, it looks like the right management took over at the right time.
time for a proper re rate"
https://uk.advfn.com/cmn/fbb/thread.php3?id=43847547&from=652
And at 81p mid, ZIN is now trading a a 10% discount to the placing price of 90p (0.18p pre-consolidation equivalent).
The directors also invested over £80K. in the placing.
This looks to me like an extremely good value recovery play, and this buy opportunity may not last long.
It's not uncommon for there to be a slight, temporary dip below a placing price, which then rapidly disappears once the extra available shares have been absorbed.
1 for 500
Placing at 0.18p opd money or 90p post consolidation
this has been a long term disaster for shareholders. Share consolidations tend to have a negative effect on the sp. Having said that I'm cautiously optimistic about new managements prospects for 2020 and will hold on for better times (hopefully)
Bought these sh*t at 3p.What a waste. However I sold motif at 60p. Long ago!
Don't blame you BMR, it's been a rough ride with this over the past few years. This is probably one of my biggest ever losers and there were a few large holders. Always had a nagging doubt it, considering the 10Alps days. As you say, might come good in the long term.GL
Yeah, predicted 5 weeks early and I sold out 5 days later... To be honest, a placing had been on the cards for a while. I think all the debt had to be repaid this year, so it was likely they would need to raise cash for this, or possibly an acquisition.
I didn’t see the SP going anywhere in a hurry and with a potential placing looming I decided to sell. One of the main reasons for selling though was wanting to buy more shares in another company, which I think will grow nicely over the next 6 months.
Reading from the RNS, the placing is likely to be at a 20% discount to the closing price. Minimum dilution will be circa 100% with a maximum of 165%. This is quite a lot, hence they also want to consolidate the shares which could possibly help attract institutional buyers in the future.
I’ve not got any plans to re-invest in the immediate future, but if they get the placing and consolidation done, I might look to buy some when the SP has settled. It should do well over the longer term, but this could mean holding 3-5 years for a decent return. Hope it all works out for those still in.
Heading back to the 52 week low... Could be a placing on the way?
Did anyone attend the AGM today? Anyone know what all the resolutions were? I looked on the website for a circular, but couldn't find one.
Hi Sbuild, Its frustrating allright, & yes David Galan did'nt really have the right knowledge to grow Zinc in this industry, surely the current CEO must be given a chance, His history in growing ITNproductions proved he has ability. Why join Zinc when he was doing so well, surely he has seen Zinc's potential, He must have a vision & contacts to achieve results, maybe deals are going on behind the scenes, (lets hope) Some new CEO's often let the sp fall a bit, Its going to be of more benefit to have a lower sp when they start negotiating share options.
Absolutely disgusting the company has allowed the stock to drop to an almost valuless level. David galan the ex ceo's blatant lies and misleading rns 's about growing big and quick were just completely fraudulent statements. Also what is frustrating for genuine shareholders is there's such strange spikes and volumes just before rns's announced, has always been very leaky ship. No idea where they go from here, I don't think they do either.
Is that friend Jar Jar Binks?
mitch, please get help, you are not well.
Yes jenashon, he really does need help.
So why are you now foreign?
sausageface - Posted in: UJO
this profile person is MAD 17 Oct 2019 17:11
"TakeAimFire
YES, me is new on LSe. YES english not my 1st language. Soomthing wrong with mind on this person - not so meny people liking this profile person. How DARE make me out as soom other person! !
YOU is rude to lot people on here, much rude person"
mitch, please get help. You are not well.
Your command of the English language seems 'okay' on this post mitch.
Hi Guys, Sounds like Sausageface needs some help here - well have a look here http://zincmedia.com/about-us/television/
there's lots going on - there is also Zincs Facebook page https://www.facebook.com/zincmediagroupplc/
& also the twitter page https://twitter.com/zinc_media?lang=en
Also Tern are casting for a new Dating Show "Are you single?Love to sing?" which sounds like a winner - could this be the new "Blind date & Britains got Talent, Love Island etc" - rolled into one show, sounds like a winning formula - are we heading for "Bake Off" sorry i meant "Take Off" if this, single new show takes off as did "Bake Off , Blind Date & Britains Got Talent" we are soon going to be at Shenners party.
So back to you Sausageface, have a look at Blakeway, ReefTV, Films Of Record, Brook Lapping & Tern TV. I am glad you asked the question as i was just checking the chat here & saw your question so had a quick look at what was going on & finding this info about Tern Casting for a new "Dating & Singing" show really made me think yes that should have mass market appeal. Good Luck all & if you research a bit you may find a potential "Love Productions" which was bought by Sky after having a lot of success with Bake Off , Is it now Zincs turn ???
Hi sausageface, Zinc has made a lot of repeatable series including the 'From Hell' strand for Channel 4 made by Tern Belfast, and includes Holidays from Hell, Roads from Hell, etc. Also The Secret Lives Of Puppies for Channel 5, which got recommissioned for a third series. They also do a lot of one offs which is good for building quick revenue and profit. Have a flick through the final results RNS and you'll see more examples.
The biggest winners for us are international commissions, and Zinc Media haven't even begun to tap into this market, particularly within the international SVOD market. I think this is an area that will be strongly in focus for the business going forward.
****************************/articles/broker-note-6bbd351/
maybe it will work this time
****************************/articles/broker-note-6bbd351/
Now that the past years results are out, This new Team can maybe start to reveal their plans, (i would expect them to start buying into the company soon & then Things may start to get interesting, i feel quite positive - content is going to be in demand, from all the new On-demand TV Channels + all the existing broadcasters, Zinc have proved that they can produce quality productions & with this new experienced TV production management team doors should start to open, they have contacts & have shown what they can do at ITN productions.
Good Luck all - patience may pay off for the brave !!
Well the SP reaction could have been worse... I figured the SP would drop after reading the results RNS so I sold 500k first thing. I Managed to get over 0.3p. There has been a strong bit of buying today and I decided to buy a few back just before the bell, it was a struggle to buy any more than 150k so I just took 146k to round my number of shares up. I thinks it's a positive sign that selling has dried up pretty quickly.
The results were disappointing, particularity because we had increased revenues yet profits were down. Although Tern has been an excellent performer it's also costing us a lot in earn-out fees. The margins are not going to improve much so the only way to make more profit from TV production will be to expand, and that will take a lot of time and money. Failing that we just need to win more commissions that are highly profitable, these will likely be commissions from the big SVOD providers etc. We need a very large deal from the likes of Netflix to get the SP moving again, but how long will that take?
It seems that the only way to make bigger profits quickly will be to diversify the business. This will probably involve a placing in order to buy other businesses to add to the group... I'll continue to hold for now and might add more if it dips back into the low 0.2's again. Over the next few months I'm expecting an acquisition and hopefully some much larger commission wins.