REG - Zoo Digital Group - Year End Trading Update and Notice of Results

Zoo DigitalAnnouncement

23/04/2018 07:05

RNS Number : 7030L
Zoo Digital Group PLC
23 April 2018
 

 
ZOO DIGITAL GROUP PLC
("ZOO", the "Group" or the "Company")
 
Year End Trading Update and Notice of Results
 
ZOO Digital Group plc, the provider of localisation and digital distribution services for the global entertainment industry, is pleased to provide an update on trading for the year ended 31 March 2018.
As previously indicated, the growth experienced in the business continued through the second half of the financial year. The Group expects to report full year revenue of at least $28.0m (31 March 2017: $16.5m), leading to Adjusted EBITDA* of at least $2.3m (31 March 2017: $1.8m). Gross cash as at 31 March was $2.4m (30 September 2017: $0.7m), with no other material borrowings other than its long-term convertible loan notes. Localisation services (being subtitling and dubbing) have continued to be the main driver of this growth and will represent in the region of 74% of overall revenue (31 March 2017: 52%).
The demand for localisation services continues to grow and, in order to satisfy this demand, ZOO has been steadily increasing the number of quality voice actors and dubbing professionals with whom it engages. Pleasingly, the Group's growing reputation in the market is helping to engage with these professionals, enabling services to be fulfilled across a growing number of languages.
The Group was also encouraged by the level of industry feedback and acclaim that ZOOdubs and the associated dubbing service achieved at the NAB show in Las Vegas, held between 7 - 12 April 2018. The level of interaction with senior individuals from major players within the industry and the resulting enquiries underlines the confidence that the Board has in the Group's long-term opportunity, particularly in respect of its localisation services.
Given the importance of localisation services, the Group intends to re-classify the costs of the internal staff responsible for fulfilling client projects as a cost of sale rather than as a central overhead as previously, for the purpose of reporting its final results and on an ongoing basis. The Board believes that this will be more representative of the Group's trading and will have no effect on the reporting of its overall profitability.  
ZOO expects to publish its full year results in the week commencing 2 July 2018.
The Company notes that the process for appointing a new Chief Finance Officer is ongoing.
 
Stuart Green, Chief Executive of ZOO, commented:
"We are pleased to confirm guidance for the full year results. We continue to see momentum in the business, driven by our localisation services, and remain optimistic for the future."
 
* Adjusted for share-based payments.
 
This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR").
 
 
For further information please contact:
 




ZOO Digital Group plc
Stuart Green, Chief Executive Officer
Helen Gilder, Chief Finance Officer
 


+44 (0)114 241 3700




FinnCap
Henrik Persson / Emily Watts (corporate finance)
Camille Gochez (corporate broking)
 


+44 (0)20 7220 0500




Alma PR
Josh Royston / Caroline Forde / Helena Bogle
 


+44 (0)20 8004 4218




 
About ZOO Digital Group plc:
ZOO Digital is a provider of services allowing TV and movie content to be subtitled and dubbed 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 localised 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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