Zinc Media reported for the first time in recent years, it returned to profitability at an adjusted EBITDA level and expected to report an adjusted EBITDA profit for the full year in excess of £0.3m.
As detailed in the interim results, the year was characterised by a restructuring of the business, involving an exit from the vast majority of the publishing businesses, which as a division was operating unprofitably, to enable the group to focus on its TV production and digital communications divisions.
The expectation of increased profitability in the current financial year is supported by a strong order book in the TV division.
At the start of the new financial year the TV division had a commissioned slate (to be delivered during the financial year) of £6.5 million. This is 76% higher than at the beginning of the previous financial year, when the commissioned slate stood at £3.7 million.
All ongoing divisions traded profitably during the last financial year and this is expected to continue in the current financial year.
The restructuring positioned the business strongly for the current financial year and beyond. The Directors believed the group's profitability will increase substantially during the current financial year.
Progress continues to be made in each of the divisions. The TV division continues to win commissions, with the programming mix characterised by longer running series, bigger budgets and new international broadcaster relationships.
With several senior management hires having been made in the last financial year, the group believes it has the right team of talented executives to drive sustained growth.