REG - Zoo Digital Group - Trading Update <Origin Href="QuoteRef">ZOO.L</Origin>

Zoo DigitalAnnouncement

07/04/2017 11:45

RNS Number : 9489B
Zoo Digital Group PLC
07 April 2017
ZOO DIGITAL GROUP PLC
("ZOO", the "Group" or the "Company")
Trading Update
Further to the Trading Update of 26 January 2017, ZOO Digital Group plc, 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." 
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
Henrik Persson / 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

This information is provided by RNS
The company news service from the London Stock Exchange
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