Good evening/morning, it's Paul & Jack here with the SCVR for Wednesday.

I'm starting this report early, on Tuesday evening, with some catch up sections from my backlog.

Agenda -

Zoo Digital (LON:ZOO) - Interim results from yesterday (Paul, done)

Marks And Spencer (LON:MKS) - interesting interim results webinar (Paul holds a long position) - (Paul, done)

Water Intelligence (LON:WATR) - interesting news on a new product (Paul, done)

Ricardo (LON:RCDO) - trading update and share placing (Jack, done)

Renold (LON:RNO) - Half year results (Paul holds a long position) - (Paul, done)

Mccarthy & Stone (LON:MCS) - Trading update (Paul, done)


Timing - today's report is now finished.


Zoo Digital (LON:ZOO)

Share price: 53.5p (down 3.6%, at market close)
No. shares: 74.6m
Market cap: £39.9m

Interim Results

ZOO Digital Group plc (LON: ZOO), a world-leading provider of cloud-based localisation and digital media services to the global entertainment industry, today announces its unaudited financial results for the six months ended 30 September 2020 ("H1 FY21").

I’ve been following this company for several years now, and it never seems to manage to live up to the expectations created. As you can see from the graphs below, at times it’s been valued at a high PER, despite lumpy and overall rather unimpressive profits, and it doesn't pay any divis;




I covered the trading update from ZOO here on 23 Sept 2020 where it indicated H1 (to 30 Sept 2020) should deliver double digit revenue growth. Nothing was said about profitability.

Interim results today;

  • H1 revenue growth of 15%, to $16.4m, consistent with the last trading update
  • Lower gross profit though, due to increased costs
  • Loss before tax of $(710)k vs. $374k profit in H1 LY - not very impressive
  • Balance sheet - quite weak, with NTAV negative, at $(2.0)m. Receivables look rather high at $9.2m

Outlook comments seem quite positive, especially the bits I’ve applied the wonky highlighter to below;



My opinion - I‘ve not seen anything in these interim results to make me want to buy this share.

To be fair to ZOO, the TV/film sector has been struggling this year, due to social distancing,…

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