ZOO Digital Group plc (LON:ZOO),the provider of subtitling and digital distribution services for the global entertainment industry, is pleased today to provide further details on trading for the year ended 31 March 2017 ahead of the announcement of its audited final results in July 2017.
The Company is pleased to report that results for the full year are expected to be in line with the optimistic outlook presented in its trading update of 26 January 2017 and that these will be significantly ahead of results of the previous two years. The Company expects to report revenue of at least $16 million, reported EBITDA of $1.8 million and to be profitable before tax on the same basis. Furthermore, the Company is pleased that the diversification of its client base has continued and the Company has a strong pipeline of projects as it enters the new financial year.
The Company is also pleased to report certain recent and forthcoming operational achievements:
· Launch at the NAB Show in Las Vegas on 22nd April 2017 of the entertainment industry’s first cloud-based dubbing platform, ZOOdubs, which is intended to improve the dubbing workflow for premium TV and movie content owners by reducing the likelihood of delays and additional costs in a process which is essential for fulfilling regional consumer expectations across the world;
· Appointment of Tony Ferkranus as VP of Sales for the Americas to focus on developing ZOO’s customer base in key territories across U.S, Canada and South America, having previously held the same position at Visual Data Media Services and Deluxe; and
· ZOO was in February 2017 named by the organisers of TVConnect, a leading industry event for the entertainment industry, as one of the top ten innovators of 2016 alongside major global brands such as Amazon, Sky, Google, BBC and Apple and was the only company involved in localisation amongst the 25 names recognised.
Further to the trading update of 26 January 2017, cash flow has continued to improve month on month, but the overall working capital position has continued to constrain the volume of new business that the Company can take on. The Company is in discussions with potential new investors and existing shareholders with respect to a placing of new shares to raise between £1 million to £2 million at a discount to the current share price. The proceeds from the placing of new shares would be used to strengthen the Company’s balance sheet, allow the Company to capitalise on the progress made in the past year and to take advantage of new market opportunities, including its dubbing service. The Company intends in parallel also to announce an extension in the term of its convertible unsecured loan stock. The timing of any such transaction has yet to be confirmed and shareholders should note that there can be no certainty that such a transaction will be completed. Further announcements in this regard will be made in due course.
Dr Stuart Green, Chief Executive Officer, ZOO Digital said: “ZOO has made good progress and trading has been in line with expectations with a second half that has shown much less seasonal variation than in previous years. We are making progress in developing existing revenue channels and remain confident that the Group is well positioned for continued strong growth.”