PRICE 3.75-4.25 PENCE.

Publication Date:May 14 2007

MediaZest

Internal changes allow for capitalisation of product suite

* Provides technical and creative digital media solutions
* Well positioned to take advantage of changes in advertising market
* Acquisition of Touch Vision broadens the customer base
* Share price overshadowed by misconception that they are dependant on the advertising revenue cycle.
http://www.equitydevelopment.co.uk/from-sponsor/mediazest/413

Mediazest Half-yearly Report

MediaZest Plc

Interim results for the six months ended 30 June 2007

CHAIRMAN'S STATEMENT

Introduction

The results for MediaZest Plc ("MediaZest", the "Company", and collectively with the Subsidiary Companies, the "Group") reflect the six-month period to 30 June 2007. They incorporate the results of its subsidiaries, all of which are wholly owned.

Results for the Period

Turnover for the period was 1,806,000 (2006 - 1,325,000) and the Group made a loss for the period, after taxation, of 223,000 (2006 - 447,000) after finance costs of 3,000 (2006 - 2,000) and having paid administrative expenses of 1,003,000 (2006 - 955,000). The basic and fully diluted loss per share was 1 pence (2005 - 2 pence). The Group had cash in hand of 251,000 (2006 - 963,000) at the period end.

Overview

The Group has made considerable progress in revenue generation during the period in both operational subsidiaries, MediaZest Ventures Limited ("MediaZest Ventures") and Touch Vision Limited ("Touch Vision"). Revenues in the Group grew by 36% versus the comparative period, reflecting increased interest in the products and services we offer and the developing digital out-of-home advertising market. The programme of cost containment measures begun in 2006 has given the business a more tenable cost base going forward and the full effect of these changes is expected to be felt during the second half of 2007.

Despite these positive developments, the Group recorded a loss in the period of 223,000, albeit half that of the comparative period in 2006. The largest proportion of these losses was incurred during a difficult start to the year in January and February.

MediaZest Ventures

In order to increase our revenue we pursued a new marketing strategy during the period, which has been successful in generating business from new clients.

These continue to be, predominantly, advertising agencies, media agencies and brand owners looking for both creative and innovative ways to increase sales or reinforce branding messages.

Our efforts have been aided by increasing acceptance of the use of digital media in out-of-home advertising. Industry intelligence puts the number of out-of-home screens capable of carrying advertising at over 120,000 in the UK alone. Although the Group does not currently operate such national media networks, it is indicative of the growing interest in the services that we offer.

During the first half of 2007 we undertook projects for blue chip companies such as Mizuno, Sony, Famous Grouse and 20th Century Fox, amongst others.

Repeat business with clients such as Chivas has also been encouraging.

Touch Vision

The improvement in Touch Vision results since we took ownership in 2005 has continued. This has been due, largely, to the reforms made to loss making areas, the winning of new contracts and an increasing volume of business being passed through from other Group companies.

In addition to the three-year framework agreement for the provision of sales, installation, and maintenance of audiovisual equipment to London South Bank University and London Metropolitan University, won last year, we have been appointed as one of four audiovisual installation suppliers to another large university for a four year period with effect from 1 August 2007. Furthermore, we have recently won our first piece of business under this tender agreement, which will be completed by the end of September 2007. Other significant wins have allowed our Education department to continue to grow and we have spent considerable time honing our high quality offering in this area, with encouraging results. Since the majority of work for these organizations occurs during holiday-periods, this work has proven counter-cyclical to our retail business and hence reduces our operational risk.

As the Christmas period approaches, orders across our retail clients have increased. We were pleased to have been involved in the HMV Store of the Future project, which has recently opened to much media interest. As well as providing audio-visual design, integration and installation services to this project, we have also supplied content management to a range of passive and interactive screens. The Company continues to provide maintenance services to all HMV UK stores. In the first half of 2007, we completed a range of exciting new audio-visual installations for a shopping centre in the North West of England, which included the deployment of Panasonic's 103" Plasma Screen for the first time in a UK retail environment and the implementation of a wide range of content management solutions.

In the Corporate sector, the Company completed two significant orders - providing audiovisual solutions for the new UK headquarters of both Electronic Arts, a major international computer games manufacturer, and Dunnhumby, a leading database manager and analytical services provider.

Outlook

The growing demand for digital out-of-home media coupled with our improved positioning and awareness of our services in the marketplace gives us grounds for optimism in the future. The second half of 2007 has begun with the Group's strongest ever quarter and in addition to a wide range of work in the education sector we have a good order book going forward with a number of well known blue-chip clients.

The impact of the rationalisation programme that was begun in 2006, is anticipated to be fully realised in the second half of 2007, with cost benefits occurring, primarily, in salary and administrative costs. Although headcount has increased, we have recruited more chargeable engineering resource whilst reducing non-revenue producing staff costs resulting in a net saving in salaries and employment overhead.

As part of our revised strategy in the market, we have begun developing closer ties with traditional Point-of-Sale suppliers as we believe that the future of in-store Point-of-Sale lies in the amalgamation of our technology with more traditional methods; the common ground being creativity in the crafting and delivery of the message.

Lance O'Neill Chairman 17 September 2007

1 YEAR CHART

good consolidation happening here...lots of good news to come (imho)

Still time to get in at ground level on this one lot's of good news to come! (imo, dyor)


.."Revenue for the current financial year ending 31 March 2014 is already
significantly in excess of last year's turnover. The Company expects to build
on that in the remaining months of the period."

Stick with it folks!... and top up when you can! (imho & dyor)

Top riser on the board.

Yep, looking good. I'm staying in!

Typical MDZ though...always end up down/level after good news! one day it'll be different!

Down 10% today.

I'm still in!

more tomorrow one would expect
gla

the next fitb, wrn.........................

Further to whispering windows and CEO

One entrepreneur who is busily engaged in building up his London-based business on the back of alliances with world-famous brands is Sean Reel. A former executive of Boots’ healthcare division, he re-launched its Optrex brand 20 years ago and put the red spot on packets of Strepsil throat lozenges. He is now managing director of Mediazest, a young company that provides innovative digital in-store devices and events to grab the attention of a generation of shoppers growing blasé about TV and radio ads, poster displays and magazine promotions.

Mediazest has the worldwide licence for ‘whispering windows’, which reinforce digital displays with voice and music apparently not coming from speakers but seeping from the windows themselves. Reel claims this device achieved a 40 per cent sales increase when introduced into parts of London department store Peter Jones.

Over Christmas, shoppers at German branches of troubled C&A retail chain could use the Mediazest kit to vote for what the lingerie models would do next. Another product is ‘directional talking cardboard’, used in one application for printed menus that can talk to restaurant customers about the special dishes of the day.

The company has formed two types of alliance. With clients such as Motorola, HMV, Nike, Pernod, Sainsbury and Apple, Reel argues Mediazest can boast a string of formidable ‘brand champions’, whose own promotional activities are sufficiently original to focus attention on Mediazest as supplier.

Many smaller companies are in the position of having to follow the lead of much larger brands, he maintains. But, thanks to the efficacy and innovative nature of Mediazest’s technology, Reel contends it is not dependent on any one of these champions and can ally its brand with theirs on more equal terms.

He says this has resulted in several business propositions from the likes of his old company Boots, Procter & Gamble and others, ‘without us having to do any business-to-business marketing at all’. On the other hand, Mediazest has forged formal alliances with 3M UK, a leading technological group in the fields of consumer and commercial display and graphics. This gives it access to content management, helping to tailor its displays more exactly to different stores and localities.

Reel believes allying the company’s brand with such a prominent player has enhanced Mediazest’s credibility as a ‘one-stop shop’ in the sector.

- See more at: http://www.growthbusiness.co.uk/growing-a-business/marketing-strategies-and-research/25335/part_2/the-appliance-of-brand-alliance.thtml#sthash.AO16gtMQ.dpuf

onwards and upwards

good steady buying - fitb mk2 :-)

moving - could multi bag like fitb

Looking good... shame the sp is dropping off a bit but medium and long term should be positive (imho)

yep good day - can only see mdz heading north now - fantastic products and highest quality clients - next rns should be more contract wins imo
gl

The product provides highly advanced reporting analysis for the retail sector, building on the Cognitec FaceVacs Videoscan platform. Using this face recognition platform, the system can provide anonymous data for the retailer and previously unavailable information to enable them to better understand their store dynamics, trading patterns and improve their customer offering and operational efficiencies. Despite only soft launching in October 2014, the Company has already made its first sale of, and deployed, the product to a global retailer for an initial site. It expects to announce further similar deals in the next quarter. Chief Executive, Geoff Robertson, said "This development is of tremendous significance for the Group. Recent high profile audio visual integration projects show how well the Group delivers its work but are by their nature longer term opportunities and timing can be difficult to predict. The MediaZest Retail Analytics system provides us with a product that in its very nature delivers constant information and reports to clients and as such will give us better ongoing monthly fees and much greater revenue visibility moving forward. We have seen a huge amount of interest in the product when showing existing and prospective clients and we expect it to have a big impact on the business over the next 12 months and beyond. By providing anonymous but genuine `big data' information to retailers we believe we are leading the market in the information currently available in bricks and mortar retail stores. The product is highly complementary to our existing services and indeed is helping us to measure the success of those services for the client whilst adding an additional revenue stream. We foresee existing customers using the system to ascertain success of audio-visual installations and a whole new set of customer using the system purely to provide data to help them run their businesses better.

It even helps us prove our other offerings add real value thus allowing cross selling of our products to further improve revenues.

onwards and upwards! :-D

following the same trend as fitb - nice

hmmm cheap as chips right now
gla

some mdz clients:

* Samsung

* NHS

* Top Shop

* Coca Cola

* Sony Ericsson

* Nintendo

* Microsoft

* Motorola

* Sony

* Proctor & Gamble

* Shell

* Chivas Regal

* Vodafone

* Mizuno

* Adidas

* Nokia

* Boots

* O2

* Musgraves

* Intel

* Arsenal FC

* Candy & Candy

* Unicredit

* HMV

* C&A

* Estee Lauder

* Dunnhumby

* Modus Properties

* London South Bank University

* London Metropolitan University

* The Co-Operative Group

* Ebay

* Hyundai

* Rockar