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(Alliance News) - Shares in MediaZest PLC surged Wednesday after it reported its maiden annual profit amid strong revenue growth, with more expected despite a tough economic backdrop.
Shares in MediaZest were 17% higher at 0.088 pence in London on Wednesday.
For the financial year ended March, the audio-visual technology firm swung to a pretax profit of GBP6,000 from a loss of GBP256,000 the year prior. This was after revenue rose 18% to GBP3.3 million from GBP2.8 million the year before.
MediaZest Chair Lance O'Neill said the company was "pleased" it had reached profitability for the "first time, with considerable year-on-year improvement in financial performance, beating market expectations comfortably."
O'Neill added that the first half of the year was "particularly pleasing as activity in the retail sector provided opportunities for growth and new client acquisition, in line with the group's strategy.
"The second half of the financial year, however, was markedly more difficult," O'Neill continued. "This was due, in part, to the deterioration in macroeconomic trading conditions that has been evident since November 2018 as a consequence, initially, of uncertainty surrounding Brexit and then latterly, an overall slowdown in the sector as a whole."
"In light of these circumstances," O'Neill added, "the achievement in reaching profitability this year has been particularly encouraging."
MediaZest does not pay a dividend.
"Despite the business environment, renewal rates on recurring revenue contracts for 'already-deployed' stores continue to be strong," O'Neill added. "This, coupled with both anticipated revenue and other new business wins, along with the reduction in the cost base means the board believes the group has an opportunity to build on this maiden profit during the coming year."
