MediaZest (LSE:MDZ) delivered a strong first-half performance for the six months ended 31 March 2026, with revenue increasing 40% to £2.67 million and gross profit rising 20% to £1.35 million. Growth was driven by a number of large-scale audio-visual deployments for clients including First Rate Exchange Services, Arc’Teryx, Hyundai, KIA, Lululemon and Pets at Home.
While gross margins eased slightly due to a greater proportion of hardware-related revenue and increased investment in engineering resources, the company reported EBITDA of £120,000 and a significantly improved profit before tax of £754,000.
Major Projects Drive Growth
The company benefited from continued demand for digital signage and audio-visual solutions across multiple sectors, including retail, automotive and corporate environments. Management said the successful delivery of large roll-out programmes across the UK and Europe was a key contributor to the improved financial performance.
MediaZest continues to focus on building long-term customer relationships and expanding its recurring revenue streams through ongoing support, maintenance and content services.
Balance Sheet Strengthened Through Restructuring
During the period, the company significantly improved its financial position through a restructuring of its debt facilities. The agreement resulted in the write-off of £529,000 of accrued interest and converted the remaining borrowings into interest-free loans.
MediaZest also completed a £215,000 equity fundraising, attracting new institutional investors and further strengthening the balance sheet. Management believes these measures provide a more stable platform for future growth.
Positive Outlook for Second Half
The company expects trading momentum to continue during the second half of the financial year, supported by ongoing client roll-outs and sustained demand across its target markets. Growing recurring revenues and a healthy project pipeline are expected to underpin performance.
Management is targeting full-year revenue of more than £5 million and continues to evaluate acquisition opportunities as part of a broader buy-and-build strategy designed to accelerate growth.
Market Considerations
The company’s outlook is supported by improving profitability and stronger free cash flow generation, although leverage levels and a history of earnings volatility remain considerations for investors. Technical indicators remain positive, with the shares continuing to trade within a strong upward trend. However, overbought momentum signals may increase the risk of short-term share price volatility. Valuation appears relatively balanced, with a price-to-earnings ratio of around 13 and no dividend yield currently available.
More About MediaZest Plc
MediaZest Plc is a UK-based provider of creative audio-visual and digital signage solutions. The company works with leading retailers, automotive manufacturers and corporate clients, delivering services ranging from content creation and system design to installation, maintenance and technical support.
Listed on AIM since 2005, MediaZest focuses on helping businesses enhance customer engagement and communication through innovative visual and audio technologies.
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