Sparks

Post its recent disposal of its non-core publishing business, Zinc Media has burnished its credentials as a supplier of quality factual programming  with the acquisition of Raw Cut, which specialises in ‘Blue Light’ programming and documentaries.  The initial purchase price of £1m is being funded through the issue of shares (with suitable lock-in arrangements), with up to £5.5m of contingent consideration payable if Raw Cut builds its EBITDA from the current £0.5m to £1.3m on average in FY25 and FY26 (the ‘earn out’), to be paid in either Zinc shares and/or in non-interest bearing loan notes. In FY23, Raw Cut generated revenue of £4.4m and PBT of £0.4m and for FY24 expects revenue of £4.6m and PBT of £0.5m. For context, consensus forecasts for Zinc (year to June 2025) are for revenue of £41.4m and PBT of £1.4m, so this is a significant transaction for the scale of the group and will increase Zinc Media’s profile with commissioners across broadcasters, streaming platforms and digital channels.