Mediazest Share Discussion Threads

[unluckymouse] 06/9/2017 22:42

This is a big concern.

The directors have obtained a letter of support from a shareholder who has
provided a loan to the Group totalling GBP250,000 at 31 March 2017 (2016: GBP
250,000) stating that they will not call for repayment of the loan within the
12 months from the date of approval of these financial statements or, if
earlier, until the Group has sufficient funds to do so.
---------------

What happens if this changes? Massive dilution, its almost half the market cap!

[frjdnverijtnhj8568934] 06/9/2017 21:13

The results are £40,000 better off because the finance director left in the middle of the year and they did not replace him.

CCCAL are getting 12% interest on their loan. Sure beats a bank account. Have the interest payments exceeded the principal yet? This loan has been going for many years now. Thanks placees for making this possible.

Regarding the letter from the shareholder stating the loan will not be called for repayment within 12 months of the accounts. It's noticeable the words "legally binding" are not mentioned. Is this letter worth the paper it's printed on?

Despite them trying to highlight overseas revenues these are only 4% of turnover and are down since last year!

2017
UK and Channel Islands 2,885
Rest of Europe 55
Rest of World 74
3,013

2016
UK and Channel Islands 3,001
Rest of Europe 112
Rest of World 31
3,144

[ochs] 06/9/2017 14:27

That's easily rectified by splitting their share capital, so not really much of a safeguard. Plenty of companies have done similar before...

[knicol46] 06/9/2017 11:31

annual report.. hxxp://www.mediazest.com/wp-content/uploads/2017/09/MediaZest-Plc-Consolidated-accounts-31.03.17-final-signed.pdf

interesting to note any placings will be at a minimum price of 0.1p which is premium to current sp

[russman] 06/9/2017 09:24

Annual Report is on the website.
Take a while to digest.
Could not see cccal's current shareholding.
In the last placing it was 15.5%
On the website it says 12.82%.

[russman] 05/9/2017 12:06

25k interest paid.

[russman] 04/9/2017 14:15

Whack the figures in an extended trial balance.

[michaelmouse] 04/9/2017 12:33

Prelims say £222,000 cash generated from operations with £16,000 cash used on investing activities? FCF = approx. £206,000.

Appreciate that invoice discounting facility is in play.

Just interested in how you've arrived at £70,000 cash burn. TIA.

[michaelmouse] 04/9/2017 12:27

How did you get £70,000 cashburn? Thanks.

[russman] 04/9/2017 12:24

If I get an Annual Report.

[michaelmouse] 04/9/2017 12:12

Russman - "About 70k cashburn at the moment."

Do you have a breakdown of your figures? TIA.

If that's for the year then second six months must have generated cash?

Not easy to get head around invoice discount/loans etc as you say.

[russman] 04/9/2017 11:55

Awaiting the Annual Report.Still to get my head around other shareholder loans/ invoice discount facility/ cashflow.About 70k cashburn at the moment.

[michaelmouse] 04/9/2017 11:06

Yep balance sheet isn't great.

However, it's not all doom and gloom. Excellent client list. Recurring revenues are building nicely. Gross margins are improving and they're edging closer to profitability and cash generation.

As I said, might go t*ts up or multi-bag in a day.

[frjdnverijtnhj8568934] 04/9/2017 10:42

Net current liabilites are nearly equal to the current market cap so I wouldn't go by market cap alone. They also require a letter from the major shareholder each year promising not to call in the loan. That's how bad the situation is. I'd invest in this at your peril.

[michaelmouse] 04/9/2017 10:17

Market cap has dipped under £1m. One of those that is either going to disappear in a puff of smoke or multi-bag in a day I suspect?

Oh for a crystal ball eh?

[michaelmouse] 04/9/2017 07:32

frdj - The £250,000 is accounted for in the cashflow from financing activities.

Prelims suggest £222,000 of operating cashflow.

As Russman says probably need to look at the full Annual Report because of the invoice discount facility, although they certainly look as if they generated cash in the second half since the cash positon at bank improved from £137,000 to £160,000? There was a significant drop in the invoice discounting facility.

Anyway, I'll wait for more clarity on the finals (Annual Report) and the next trading update.

[frjdnverijtnhj8568934] 03/9/2017 20:04

michaelmouse
No you are way out and need to do a bit more research. They raised £250,000 in a placing remember. Take that into account when you work out the cash flow.

[russman] 01/9/2017 14:10

I cannot tell the cashflow without the full Annual Report.This invoice discout facility is a shareholder loan.

[michaelmouse] 01/9/2017 13:13

You've piqued my interest ladies/gentlemen. Mediazest has been a serial disappointer for many years, but can it turn itself around?

Your observations on the accounts are interesting.

However, I would have thought that cashflow is the crucial measure for Mediazest, and if I'm correct they actually generated good cashflow in the second six months of the year and for the full year as a whole? Looking at past accounts they normally guzzle through cash.

In fact, given it's such a minnow with a market cap. just a little over £1m, the market cap. is surely only around 5 times FCF which, if sustainable, makes it quite interesting doesn't it? Two major contracts have fallen into the current year as well.

Just a couple of thoughts to consider perhaps?

[ochs] 01/9/2017 12:49

Good spot - so the actual loss this year is worse than last year (not including the 'one-off, non-cash income statement charge of £139,000').

Nothing to make the shares go up at present. Seems more downside/placing risk.

[russman] 01/9/2017 12:43

Goodwill is circa 2.7m.It cannot have an infinite life.10 yrs considering the business.It should have been written off by now.

[frjdnverijtnhj8568934] 01/9/2017 12:23

This from last years results

"There was a one-off, non-cash income statement charge this year of £139,000 relating to the issue of share options under the MediaZest Group Enterprise Management Incentive Scheme in accordance with International Financial Reporting Standard 2 “Share Based Payment”. The Group made a profit at EBITDA level for the first time of £58,000 (2015: loss £625,000) before this one-off non-cash adjustment. The Group loss for the year after taxation, adjusted for this non-cash entry, was £109,000 (2015: £656,000)."

[frjdnverijtnhj8568934] 01/9/2017 12:14

"The combined effect of improved margins and reduced administrative expenses resulted in a substantial reduction in loss after tax to £142,000 (2016: £248,000)."

Is this statement misleading? Looking at last years results the loss of £248,000 included a non cash item of £139,000 which was due to the issue of stock options. So operationally the loss was only £109,000 compared to £142,000 in the latest results. Can someone double check this.

[clocktower] 01/9/2017 10:25

Goodwill is worth next too Zero these days imo - there is no customer goodwill anymore. Regardless if your shopping for goods or services you buy because the price is right or the service offers you what you think they provide, not that either always live up to your expectations, much in the same way as investments/gambles.

[russman] 01/9/2017 10:11

Looking at Goodwill today.
MediaZest Ventures has goodwill of circa 113k; has been for a decade.
MediaZest Ventures Ltd was dissolved in March 2012.
There is a new MediaZest Ventures Ltd but it is dormant and the Plc is not a shareholder.
If Ventures was rolled into International, it would be extremely difficult to test whether 113k was a true current figure.
It is pretty amazing that the total goodwill figure has not moved (in years) considering the business sector MDZ operates in.