LONDON (ShareCast) - MediaZest shares plunged by almost a fifth on Monday after the group posted a loss for the year ended March 31st, hit by falling revenue and despite reduced sales costs.

The group, which operates two divisions through its wholly-owned subsidiary, said the results were reflective of a "disappointing year", and blamed much of the decreases in earnings of the rescheduling of a large project, which had been expected to generate revenues of in excess of £4.0m.

It also suffered after HMV, one of its long-standing customers, went into administration at the start of the year.

However, the group was keen to unline a "significant" contract win in April, which is expected to deliver revenues in excess of £1.0m over the subsequent 18 months, and offers the company "significant future business opportunities".

Revenue for the period decline to £1.85m (2012: £2.5m), with the loss for the period climbing to £0.55m (2012: £0.42m).

The cost of sales declined from £1.4m to £0.94m. Losss per share edged 0.01p lower to 0.15p.

In a statement the company said: "The group has continued to add to its client base of blue chip retailers and brands and has an enviable record of client retention. In view of this and with the objective of expanding the group's business further the company has taken on new business premises in Woking, moving from its current location in Farnham. It has also set up a demonstration showroom in Shoreditch in close proximity to the City of London.

"There has been a successful start to the financial year ending March 31st 2014. The group won its single largest piece of business in April 2013 and this along with several other substantial contracts have given the company a strong business base for this financial year. It has already booked revenue within the first five months of the current financial year significantly in excess of the corresponding period in the financial year."

NR

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