Zoo Digital confident in meeting full-year expectations

By Josh White

Date: Monday 13 May 2024

Zoo Digital confident in meeting full-year expectations

(Sharecast News) - Entertainment localisation and media service provider Zoo Digital Group said in an update on Monday that it has renewed its debt facilities with HSBC for an additional 12 months, amounting to $3m.
The AIM-traded firm said that although the facilities remained untapped, they bolstered its financial flexibility for working capital requirements in a progressively improving market environment.

As of 31 March, the company's net cash position stood at $5.3m, surpassing previous expectations due to stronger collections in March than initially anticipated.

Customer demand had continued its upward trajectory, with March recording the highest invoicing since April last year, driven by an accelerated pipeline.

Zoo said the expansion of work had persisted through March and April, with visibility extending up to September.

Revenue projections for the first quarter of the 2025 financial year indicated a 36% increase compared to the fourth quarter of 2024, supported by recent cost-saving measures, positioning the company to achieve break-even EBITDA in the first quarter.

Zoo Digital said it had secured dubbing and subtitling orders from a major film and television distributor, for which it was recently appointed as a primary vendor, as announced on 26 March.

The company said it was focussed on its strategy to leverage innovative technology, including artificial intelligence (AI), to enhance its end-to-end services.

That approach, coupled with a capital-efficient model involving production hubs in strategic locations to ensure a 24/7 service offering, was expected to drive profitable revenue growth.

Despite the significant industry disruptions in the 2024 financial year, the board said it was optimistic about revenue rebuilding opportunities, particularly with market commentators forecasting a return to 2022 levels of entertainment output by 2025.

As a result, the directors said they were confident in at least meeting 2024 market expectations.

Zoo Digital said it expected to announce its full-year results for the period ending March in early August.

At 1148 BST, shares in Zoo Digital Group were up 12.6% at 61.93p.

Reporting by Josh White for Sharecast.com.


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