MediaZest flags return to full-year profitability, restructures debt

(Sharecast News) - MediaZest said in an update on Tuesday that it expected to report a return to profitability for the year ended 30 September, adding that it had completed a major restructuring of its debt, giving the business greater financial flexibility as revenues continued to grow. The AIM-traded audio-visual solutions provider said it anticipated annual revenues of about £4m, up 30% from £3.07m the prior year, along with a substantial EBITDA profit and a modest profit after tax.

Year-end cash was expected to rise to about £0.1m from £64,000 a year earlier.

The company said the final four months of the period were particularly strong, with installations for key long-standing clients including Pets at Home, First Rate Exchange Services, Lululemon Athletica, Arc'teryx and Kia generating around £1.8m in revenue and delivering a low six-figure net profit.

MediaZest also reported continued expansion in recurring income, with annualised contracted revenues now exceeding £1.2m, compared with about £0.9m at the end of September 2024.

MediaZest said it had restructured its borrowing arrangements after negotiations with its lenders.

Under the agreement, debt holders had written off £0.53m of interest, leaving a principal balance of £0.79m to be repaid over six years to the 2031 financial year, with no further interest accruing.

The group said it had also fully repaid its invoice discounting facility during the year.

City and Claremont Capital Assets, a substantial shareholder, agreed to write off £0.46m of accrued interest, reducing its outstanding balance to £0.45m, while loans owed to former director Lance O'Neill and to the estate of his mother, Yvonne O'Neill, would be repaid in full by mid-2026.

The restructuring was deemed a related-party transaction under the AIM rules, and MediaZest's independent directors said the terms were fair and reasonable.

"I am extremely pleased with the progress MediaZest has achieved in the period, delivering a strong year in the 12 months to September; illustrating growth in revenues and continual success delivering installations with our key customers," said chief executive Geoff Robertson.

"We are extremely thankful to the debt holders for their support and willingness to enable us to restructure our debt facility, allowing the group more operational flexibility to build on this years' growth."

He added that trading in the new financial year had made "an encouraging start", with full-year results due in February 2026.

At 1245 GMT, shares in MediaZest were up 49.66% at 0.11p.

Reporting by Josh White for Sharecast.com.