Market's view on Mediazest
Published on April 2024
- MDZ’s financial instability is noted with a recent £550,000 loss on £2.35M revenues and warnings of potentially more losses despite projected revenue increases.
- Concerns are raised over MDZ’s ongoing need for more “working” capital and the risk of further dilution due to potential fund raises.
- Speculation about MDZ needing to extend the repayment of their debts, with suggestions that a merger with EP&F might be necessary.
- It’s remarked that MDZ’s share price being 50% higher than its recent fundraising price is unrealistic.
- Observations made that despite a positive trading update, the actual financial figures and fundamentals remain unimpressive, leading to a lack of investor interest and low share price movements.
- There’s an indication that MDZ might be vulnerable to financial manipulation or mismanagement, as suggested by the need to tidy up family interests through corporate restructuring.
- Comments underline the minimal cash reserves and the impractical reliance on intangible assets valued at 95m, which the market does not recognise as having real value.