ZOO Digital Group plc (LON:ZOO), 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.”