18th Aug 2014 08:28
LONDON (Alliance News) - MediaZest PLC Monday posted a widened loss for the year to the end of March despite seeing revenue rise, on higher costs and administrative expenses.
The company posted a pretax loss of GBP675,000, widened from GBP551,000 in the previous year, despite seeing revenue rise to GBP2.9 million from GBP1.9 million, as cost of sales more than doubled and administrative expenses rose.
The company said the rise in administrative expenses was due to a much largest investment in its sales and marketing process.
MediaZest said that a GBP865,000 fund raising in January enabled it to strengthen and de-gear its balance sheet to redeem around GBP300,000 of debt.
It secured a FIFA World Cup Trophy Tour contract with The Coca-Cola Company, as well as a eduction and corporate sector contract, which helped to offset the loss of its largest contract with HMV Retail Ltd after it went into administration.
The company said that it had spent a larger amount of time on developing its retail analytics product in the latter part of the year and the first quarter. Which, combined with time and resources taken up by delivering the Coca-Cola project, has not improved its performance in the first quarter of the new year, it said.
However, it saw a "substantial improvement" in the second quarter on new business wins. The company said its core strategy remains transitioning its revenue base to ongoing contractual business and away from large scale products.
It believes this strategy is "starting to pay dividends in the current quarter with the future pipeline in the full year 2015 and beyond looking much improved."
Shares in MediaZest were trading down 3.3% at 0.145 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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