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(Alliance News) - Zoo Digital Group PLC on Tuesday reported a swing to loss for financial 2020 but said trading in the first three months of the new financial year has been strong.
Shares in the company - which provides cloud-based localisation and digital distribution services to the entertainment industry - were trading 1.5% lower at 67.00 pence each on Tuesday afternoon in London.
For the financial year that ended March 31, Zoo Digital posted revenue of USD29.8 million, up 3.5% from USD28.8 million recorded for financial 2019. However, it swung to a pretax loss of USD47,000 from USD1.3 million profit.
The Sheffield-based company said the deterioration was a result of a non-cash write-down of the value of embedded derivatives.
Turning to the current financial year, Zoo Digital said it has made a strong start to financial 2021, and it expects to benefit from future tailwinds in the entertainment industry. It said trading in the first quarter was "robust", adding that it expects revenue to be at least 15% ahead of the first quarter of financial 2020.
Looking ahead, Chief Executive Stuart Green said: "The market has shown considerable resilience during this challenging period and we are confident of continued momentum. We are satisfied we have enough visibility, and sufficient opportunities in our pipeline, to enable us to resume market forecasts, and look to the future with optimism."
As at the end of March, the company had cash of USD700,000.
By Ife Taiwo; ifetaiwo@alliancenews.com
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