(Alliance News) - MediaZest PLC on Friday said it swung to a loss as tough business conditions combined with the Covid-19 pandemic to drag down revenue.
Separately, MediaZest said its shares have been restored to trading on AIM following publication of its second interim report. Its shares were suspended on Monday. Having resumed trading Friday, they were down 35% at 0.031 pence.
As announced in April, the company extended its current accounting year to September 30 so as to defer audit costs until later in the year and conserve cash in the lockdown period. As such, all comparisons are against its audited result for its previous financial year ended March 2019. MediaZest will publish audited results for the 18 months ended September 30 by the end of March 2021 at the latest.
London-based audio visual services firm MediaZest made a GBP311,000 pretax loss for the 12 months ended March 31, swinging from a GBP6,000 profit the year before as revenue dropped 27% to GBP2.4 million from GBP3.3 million.
MediaZest said its results were hurt by "difficult business conditions encountered at the beginning of the current financial year and secondly by the Covid-19 pandemic", with February and March especially hurt as clients started to defer some projects and then began closing stores and other places of businesses amid lockdowns. MediaZest made use of the UK government's furlough scheme with all employees back at work in some form since July.
Chair Lance O'Neill said: "At this time, it remains difficult to fully assess the extent to which the pandemic will affect the group's forthcoming trading and financial performance as the situation continues to evolve rapidly.
"In response to this, as well as the various cost cutting measures, the group has been investigating several new lines of business, all associated with the audio-visual market, which are aimed at meeting client's changing needs after the pandemic."
O'Neill noted that the firm is still receiving enquires from potential new clients but at a lower level than would be expected for the time of year. Several of its long-term roll out projects have restarted with demand from ongoing clients still strong.
"The board is working on the assumption that the disruption caused by the pandemic will have an impact deep into 2021 and continues to plan accordingly, searching for new revenue streams whilst managing costs carefully," the chair said.
By Anna Farley; annafarley@alliancenews.com
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Mediazest (MDZ)