Last checked at 26 Jan 2017 07:00
ZOO DIGITAL GROUP PLC
("ZOO", the "Group" or the "Company")
Trading Update
ZOO Digital Group plc, the provider of subtitling and digital distribution services for the global entertainment industry, today provides an update on current trading for the year ending 31 March 2017.
The Company is pleased to announce that the momentum seen in the first half of the financial year has continued and, as such, expects the second half performance to show less seasonal variation than in previous years in terms of both Revenue and EBITDA, with reported EBITDA for the full year expected to be at least $1.8m. This, in turn, means that the Company expects to deliver a significant improvement for the full year when compared to the financial year ended 31 March 2016.
Cash flow has improved month on month and continues to do so, but the overall working capital position is currently constraining the volume of new business that the Company can take on. The Company's net current liabilities (unaudited) at 31 December 2016 were $4.3m which includes $3.8m in convertible unsecured loan stock held predominantly by major shareholders with whom the Company is currently discussing an extension of the term.
The Company will provide a further trading update for the year ending 31 March 2017 in April, prior to the release of its audited final results.
Stuart Green, Chief Executive of ZOO, commented:
"The fact that our second half performance will show an improvement over prior years is a significant factor for ZOO. The business has been typically weighted to the first half due to our reliance on a small number of customers and on the seasonality of the home entertainment market. This performance demonstrates our success to date in diversifying our revenue streams but also points to the transformational change that the entertainment industry has undergone and the strength of our offering for digital distribution."
The information communicated in this announcement includes inside information for the purposes of Article 7 Regulation 596/2014.
For further enquiries please contact:
ZOO Digital Group plc | 0114 241 3700 |
Stuart Green - Chief Executive Officer | |
Helen Gilder - Group Finance Director | |
FinnCap |
020 7220 0500 |
Ed Frisby / Emily Watts (corporate finance) Camille Gochez (corporate broking) |
About ZOO Digital Group plc:
ZOO Digital is a provider of services allowing quality TV and movie content to be subtitled in any language and prepared for sale with all major online retailers. ZOO's clients are some of the best-known brands in the world including major Hollywood studios, global broadcasters and independent distributors.
ZOO's point of difference in the marketplace is its development and use of innovative cloud technology. This ensures that content is subtitled in any language and delivered to all the major online platforms such as Amazon, iTunes, Google and Hulu with reduced time to market, higher quality and lower costs. ZOO's agile, cloud-based business model enables clients to respond to market trends, scale easily with business growth and capitalise on new routes to market in the fast moving and evolving digital industry.
ZOO operates from the entertainment hubs of Los Angeles and London with a development and production centre in Sheffield. Its full-service proposition includes digital distribution, subtitling & captioning, metadata creation & localisation, dubbing, artwork localisation, workflow and asset management.
www.zoodigital.com