TIDMZOO
RNS Number : 3377D
Zoo Digital Group PLC
06 July 2016
6 July 2016
ZOO DIGITAL GROUP PLC
("ZOO" or "the Group")
FINAL RESULTS FOR THE YEARED 31 MARCH 2016
ZOO Digital Group plc, the provider of cloud-based media
production software and services to global creative organisations,
today announces its audited financial results for the year ended 31
March 2016.
HIGHLIGHTS
Operational highlights
-- 29% increase in customer numbers
-- Small increase in total revenues with a 25% increase in adjusted* revenues
-- Introduced new services for captioning of TV advertisements and enriched metadata creation
-- Raised GBP500,000 in new working capital by way of the issue of a new convertible loan note
-- Established as a preferred vendor for two of the largest
online entertainment retailers in the industry
-- Appointed two new senior sales positions for Europe and Asia
* excluding revenue attributable to the service delivery arm of
one of our largest customers that was disrupted during a change of
ownership
Key Financials
-- Revenues of $11.6m (2015: $11.5m)
-- EBITDA profit of $0.2m (2015 loss of: $0.7m)
-- Gross margin 79% (2015: 78%)
Copies of the Report and Accounts for the year ended 31 March
2016 are available to view on the Group's website
www.zoodigital.com.
Stuart Green, CEO of ZOO Digital, commented,
"The changes due to new consumer technologies and
internet-delivered services that have disrupted the entertainment
supply chain in the last five years have been profound. To meet the
new challenges of the industry requires high quality entertainment
products to be created for more languages, on more digital
platforms and more quickly than ever before. These factors combine
to create a significant opportunity for ZOO.
"We have entered our 2017 year with a stronger pipeline, a
broader range of services and a greater sales capability. The board
is optimistic about the Company's potential for growth."
For further enquiries please contact:
ZOO Digital Group plc 0114 241 3700
Stuart Green - Chief Executive Officer
Helen Gilder - Group Finance Director
FinnCap Ltd 020 7220 0500
Ed Frisby / Emily Watts (corporate finance)
Camille Gochez (corporate broking)
The Company further wishes to draw attention to the posting on
its website (www.zoodigital.com) of a presentation to shareholders
regarding its final results.
CHAIRMAN'S STATEMENT
The Board is pleased to report on a year of good progress in
firmly establishing our subtitling and other localisation services,
powered by our proprietary software, with all six of the major
Hollywood studios and with an increasing number of other large
content owners and distributors. The industry-leading quality that
our platforms deliver has led to their adoption as the favoured
systems for localisation data in a growing number of our customers.
The enrolment of ZOO as a preferred vendor for one of the leading
online entertainment retailers in May 2016 is the latest indicator
of the significant progress made by the Group in diversifying its
customer base.
Annual revenue of $11.6m (2015: $11.5m) was achieved despite
major disruption during the year that resulted from the disposal of
the service delivery arm of one of our largest customers. The Board
is encouraged that the Group was able to cope with this disruption
and still return to a significant improvement at EBITDA level of
$0.2m (2015: EBITDA loss of $0.7m), with gross margin remaining
strong at 79% (2015: 78%).
The Group continues to invest heavily in its software, in
service delivery and in its sales capacity, and is working to
conclude long term partnership arrangements with a number of global
content owners and distributors.
We are grateful once more for the support of our stakeholders
who continue to provide us with working capital to enable the
development of the business, and for the excellent work done by our
staff in the USA and the UK, upon whom our success depends.
Roger D Jeynes
Chairman
CHIEF EXECUTIVE'S STATEMENT
Introduction
At the time of our final results for the year ended 31 March
2015 we indicated that sales were impacted by organisational
changes in a major client that, during that year, accounted for 24%
of revenue. This disruption continued throughout the year ended 31
March 2016 by which time the client was under new ownership.
Despite this significant loss of business, we are pleased to report
sales of $11.6m (2015: $11.5m). When sales to this client are
excluded, underlying growth was 25%. We delivered EBITDA of $0.2m
(2014: EBITDA loss of $0.7m).
This underlying growth has been primarily due to the addition of
new clients during the period when customer numbers increased by
29%. ZOO's clients now include all of the six major Hollywood
studios as well as other leading producers of feature film and
episodic TV programmes in North America and Europe.
Working Capital
On 17 December 2015 we announced that we had raised GBP500,000
in new working capital support by way of the issue of a new
convertible loan note. The key terms of this financing are
identical to the Company's pre-existing Unsecured Convertible Loan
Notes of GBP2,750,500, namely interest of 7.5 per cent. per annum
(payable half-yearly) and a conversion price of 48 pence per
ordinary share of 15 pence each.
Software and Services
The Company has continued to invest in its cloud computing
platforms, including ZOOcore and ZOOsubs, which are increasingly
sought in the market to enable quality TV and movie content to be
delivered in a greater number of languages to many online retailers
more quickly, reliably and at higher quality. ZOOsubs, which is
being adopted as the subtitle system of record by a growing number
of ZOO's clients, recently passed the milestone of 120 million
subtitles stored for leading content producers.
In response to client demand, ZOO has introduced a number of new
products and services in the period:
-- The first is a subtitling service for TV advertising - an
area of growth as legislation around the world increasingly
requires broadcasters to make more programmes accessible to viewers
with disabilities.
-- Using services enabled through its cloud technology, ZOO is
now able to improve significantly the discoverability of video
materials on the internet by the preparation of contextual
information that reveals what is happening in each scene. Although
currently in its infancy, we expect this enriched metadata will
become increasingly important to online retailers.
-- To assist in the management of media assets for delivery to
the growing number of digital platforms, the Company has developed
ZOOvault to provide secure cloud storage and simplify ordering of
new languages and formats.
-- At the North American Broadcasters (NAB) show in Las Vegas in
April 2016 the Company unveiled ZOOscreen - a new digital service
to deliver screeners (viewing copies) for Academy Awards and other
film festivals. Currently screeners are distributed on DVD;
ZOOscreen provides a higher quality, more economical and secure way
to deliver content to Academy Members and other recipients. NAB
2016 has been the Company's best ever tradeshow in terms of
visitors and meetings.
Growth Opportunities
The entertainment industry continues to evolve rapidly with
online retailers, such as Apple, Netflix, Amazon, Google and Hulu,
playing an increasingly significant role. According to the Digital
Entertainment Group, overall electronic sell-through (EST) spending
rose 18% in calendar 2015. Research from Adobe and The Diffusion
Group indicates that US consumers are now spending 42% of their TV
viewing time watching streaming video services.
ZOO continues to build on its relationships with leading online
retailers, and in February 2016 was approved by Apple to offer
iTunes aggregation services for TV series, in further recognition
of its consistent delivery of outstanding quality content to the
iTunes store.
More recently in May 2016 ZOO was awarded the status of
preferred vendor for one of the largest online entertainment
retailers in the industry. This status is an elite industry
standard and seen to be awarded for excellence. According to this
online retailer, preferred vendors make up the top 3% of its
fulfilment partners and represent the highest calibre in Digital
Supply Chain capabilities via best practices, technologies, and
infrastructure.
The ongoing changes in the industry are the result of demand for
wider availability of entertainment content around the world,
delivered in more languages by a growing number of online
retailers. This calls for a new breed of service provider, offering
more agile and efficient services. Through its development and use
of innovative cloud technology, ZOO is uniquely placed to
capitalise on the growing market opportunity. Despite continuing
flux within the industry, ZOO is now securing traction from content
owners and online retailers, resulting in greater diversification
of the client base, reduced client concentration and a stronger
sales pipeline.
To capitalise on the growth market, ZOO has expanded its
commercial team through two key appointments. Syed Ahmed has joined
to focus on international business development, opening up
opportunities for customers in the Middle East, South Asia and Asia
Pacific. Syed previously held the position of Managing Director for
the Middle East with Deluxe. European sales will also be expanded
following the appointment of Mazin Al-Jumaili who joins as Director
of Business Development for Europe. Mazin was previously VP
Localisation Europe at Deluxe and most recently Managing Director
UK at BTI Studios.
Staff
I continue to be delighted by the accomplishments of ZOO's
talented staff, from the innovativeness of our product development
team that continues to enhance the competitive advantages of our
cloud computing platforms, through to the excellent quality
standards maintained by our production team which, for the first
calendar quarter of 2016, achieved a perfect 0% redelivery rate to
a leading online retailer. I should like to extend my thanks to all
ZOO staff for their contribution, dedication and ambition.
Current Trading and Outlook
The changes due to new consumer technologies and
internet-delivered services that have disrupted the entertainment
supply chain in the last five years have been profound. To meet the
new challenges of the industry requires high quality entertainment
products to be created for more languages, on more digital
platforms and more quickly than ever before. These factors combine
to create a significant opportunity for ZOO.
We have entered our 2017 year with a stronger pipeline, a
broader range of services and greater sales capability. The board
is optimistic about the Company's potential for growth.
Stuart A Green
Chief Executive Officer
FINANCIAL REVIEW
Year ended 31 March 2016
During the year ended 31 March 2016 the Group reported sales of
$11.6m (2015: $11.5m). As in previous years, turnover in the second
half was lower at $5.0m compared to the first half of $6.6m,
however the impact of seasonality has lessened compared to prior
years and the turnover for the second half of 2015/16 is the
strongest such period for several years.
We are pleased to be reporting a significant improvement in
profitability with EBITDA of $0.2m compared to a loss of $0.7m in
the prior year, despite only a modest rise in turnover. The
improvement in profitability is due to meticulous cost controls in
place across the business and the drive to improve production
processes with the use of technology whenever possible. The total
operating expenses for 2015/16 were $10.5m compared to $11.1m in
the prior year.
The year included two large claims under the UK R&D tax
credit scheme where a total of $0.7m was received under the cash
repayment scheme. These claims related to the periods 2013/14 and
2014/15 and the expectation is that a cash repayment will be
available under the same scheme for 2015/16, however no financial
benefit has been accrued in these results in relation to the
expected 2015/16 cash repayment.
Working capital continues to be funded through invoice financing
facilities in the UK and US with total facilities of $3.2m
available, of which $0.6m was drawn down as at 31 March 2016. In
addition, the loan from the wife of Dr Stuart Green, the CEO, and
the convertible unsecured loan notes remain in place.
Additionally, the Company refers to the results of the vote on
23 June 2016 in the United Kingdom on the referendum for Britain to
leave the European Union and the weakening of the British pound
following the results of the vote. The Group incurs the majority of
its revenue and costs in US dollars and reports in US dollars,
therefore the Directors do not anticipate any immediate negative
impact on the Group's business as a consequence.
Helen Gilder
Group Finance Director
FINANCIAL INFORMATION
The financial information set out here for the year ended 31
March 2016 does not constitute full statutory financial statements
as defined in section 434 of the Companies Act 2006 but has been
extracted from the Group's financial statements for that period.
Statutory financial statements for the year ended 31 March 2016
were approved by the directors on 5 July 2016, but have not yet
been delivered to the Registrar of Companies. Those financial
statements were reported upon without qualification by the
independent auditor and did not contain a statement under section
498 (2) or (3) of the Companies Act 2006.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 March 2016
2016 2015
Note $000 $000
========================================================= ========= =========
Revenue 11,638 11,465
Cost of sales (2,399) (2,483)
========================================================== ========= =========
Gross Profit 9,239 8,982
Other operating income 115 -
Other operating expenses (9,198) (9,669)
========================================================== ========= =========
Profit/(Loss) before interest, tax, depreciation
and amortisation 156 (687)
========================================================== ========= =========
Depreciation (181) (214)
Amortisation and impairment (1,078) (1,200)
========================================================== ========= =========
Total operating expenses (10,457) (11,083)
========================================================== ========= =========
Operating loss (1,103) (2,101)
========================================================== ========= =========
Exchange gain on borrowings 206 561
Finance cost (559) (584)
========================================================== ========= =========
Total finance cost (353) (23)
========================================================== ========= =========
Loss before taxation (1,456) (2,124)
Tax on loss 669 66
========================================================== ========= =========
Loss and total comprehensive income for
the year attributable to equity holders
of the parent (787) (2,058)
========================================================== ========= =========
Loss per share 3
================ ============= =============
basic (2.41) cents (6.30) cents
================ ============= =============
diluted (2.41) cents (6.30) cents
================ ============= =============
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 March 2016
2016 2015
Note $000 $000
======================================= ===== ========= =========
ASSETS
Non-current assets
Property, plant and equipment 433 421
Intangible assets 7,382 7,967
Deferred income tax assets 486 486
======================================= ===== ========= =========
8,301 8,874
======================================= ===== ========= =========
Current assets
Trade and other receivables 2,531 1,918
Cash and cash equivalents 4 314 325
======================================= ===== ========= =========
2,845 2,243
======================================= ===== ========= =========
Total assets 11,146 11,117
======================================= ===== ========= =========
LIABILITIES
Current liabilities
Trade and other payables (3,096) (3,031)
Borrowings 6 (142) (105)
======================================= ===== ========= =========
(3,238) (3,136)
======================================= ===== ========= =========
Non-current liabilities
Borrowings 6 (6,142) (5,453)
======================================= ===== ========= =========
Total liabilities (9,380) (8,589)
======================================= ===== ========= =========
Net assets 1,766 2,528
======================================= ===== ========= =========
EQUITY
Equity attributable to equity holders
of the parent
Called up share capital 5 7,236 7,236
Share premium reserve 37,014 37,014
Other reserves 12,320 12,320
Share option reserve 317 296
Convertible loan note reserve 42 42
Foreign exchange translation reserve (992) (992)
Accumulated losses (54,151) (53,364)
======================================= ===== ========= =========
1,786 2,552
======================================= ===== ========= =========
Interest in own shares (20) (24)
======================================= ===== ========= =========
Attributable to equity holders 1,766 2,528
======================================= ===== ========= =========
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2016
Foreign
Share exchange Convertible Share Interest
Ordinary premium translation loan note option Other Accumulated in own
shares reserve reserve reserve reserve reserves losses shares Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
=============== ========= ======== ============ ============ ======== ========= ============ ========= ========
Balance at
1 April 2014 7,236 37,014 (992) 42 302 12,293 (51,306) (23) 4,566
Share based
payments 24 24
Forfeited
share options (30) 27 (3)
Lapsed share
warrants
Purchase of
own shares (1) (1)
Transactions
with owners (6) 27 (1) 20
Foreign
exchange
translation
adjustment
Loss for the
year (2,058) (2,058)
=============== ========= ======== ============ ============ ======== ========= ============ ========= ========
Total
comprehensive
income for
the year (2,058) (2,058)
=============== ========= ======== ============ ============ ======== ========= ============ ========= ========
Balance at
31 March 2015 7,236 37,014 (992) 42 296 12,320 (53,364) (24) 2,528
Share based
payments 22 22
Forfeited
share options
Purchase of
own shares (1) (1)
=============== ========= ======== ============ ============ ======== ========= ============ ========= ========
Transactions
with owners 21 21
=============== ========= ======== ============ ============ ======== ========= ============ ========= ========
Foreign
exchange
translation
adjustment 4 4
Loss for the
year (787) (787)
=============== ========= ======== ============ ============ ======== ========= ============ ========= ========
Total
comprehensive
income for
the year (787) (787)
=============== ========= ======== ============ ============ ======== ========= ============ ========= ========
Balance at
31 March 2016 7,236 37,014 (992) 42 317 12,320 (54,151) (20) 1,766
=============== ========= ======== ============ ============ ======== ========= ============ ========= ========
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 March 2016
2016 2015
Note $000 $000
============================================ ===== ======== ========
Cash flows from operating activities
Operating loss for the year (1,103) (2,101)
Depreciation 181 214
Amortisation and impairment 1,078 1,200
Share based payments 21 21
Purchase of own shares - (1)
Exchange loss on foreign operations - -
Changes in working capital: - -
(Increases)/decreases in trade and other
receivables (613) 1,289
Increases in trade and other payables 65 60
============================================ ===== ======== ========
Cash flow from operations (371) 682
Tax received 669 66
============================================ ===== ======== ========
Net cash flow from operating activities 298 748
============================================ ===== ======== ========
Investing Activities
Purchase of intangible assets (493) (569)
Purchase of property, plant and equipment (32) (67)
============================================ ===== ======== ========
Net cash flow from investing activities (525) (636)
============================================ ===== ======== ========
Cash flows from financing activities
Repayment of borrowings (145) (512)
Proceeds from borrowings 710 1,187
Finance cost (349) (584)
Net cash flow from financing 216 91
============================================ ===== ======== ========
Net (decrease)/increase in cash and cash
equivalents (11) 203
============================================ ===== ======== ========
Cash and cash equivalents at the beginning
of the year 325 122
============================================ ===== ======== ========
Cash and cash equivalents at the end
of the year 4 314 325
============================================ ===== ======== ========
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2016
1. General information
ZOO Digital Group plc ('the company') and its subsidiaries
(together 'the group') provide productivity tools and services for
digital content authoring, video post-production and localisation
for entertainment, publishing and packaging markets and continue
with on-going research and development in those areas. The group
has operations in both the UK and US.
The company is a public limited company which is listed on the
AIM Market of the London Stock Exchange and is incorporated and
domiciled in the UK. The address of the registered office is The
Tower, 2 Furnival Square, Sheffield.
The registered number of the company is 3858881.
The consolidated financial statements are presented in US
dollars, the currency of the primary economic environment in which
the company operates.
2. Summary of significant accounting policies
The principal accounting policies applied in the preparation of
these financial statements are set out below. These policies have
been applied consistently to all the years presented, unless
otherwise stated.
2.1 Basis of preparation
The full year results for the year ended 31 March 2016 have been
extracted from the audited consolidated financial statements. The
financial information set out in this preliminary announcement does
not constitute statutory accounts but is derived from those
accounts. While the financial information in this preliminary
announcement has been prepared in accordance with International
Financial Reporting Standards ('IFRS'), this announcement does not
itself contain sufficient information to comply with IFRS.
The financial information shown in this announcement has been
extracted from, and is consistent with, the audited financial
statements for the year ended 31 March 2016. The auditors have
reported on those accounts and their reports were unqualified and
did not draw any attention to any matters by way of emphasis
without qualifying their report. The Group has published its Annual
Report for the year ended 31 March 2016 on its website.
The directors have prepared trading and cash flow forecasts for
the group for the period to 31 March 2019 which show a recovery
from the current position and cautious growth in profitability. In
line with industry practice in this sector the directors have had
informal indications from major and smaller customers to
substantiate a significant proportion of the forecast sales. The
directors have considered the consequences if the sales volume is
less than the level forecast and they are confident that in this
eventuality, alternative steps could be taken to ensure that the
group has access to sufficient funding to continue to operate. The
group has invoice financing arrangements in place for sales made by
both the UK and US subsidiaries. The facility with Bibby Financial
Services (California) Inc provides invoice financing of up to $2.5m
against US customers invoices raised by ZOO Digital Production LLC.
This facility is in place until 1 February 2017. The facility with
Santander Bank provides an invoice financing facility for certain
sales invoices raised by ZOO Digital Limited. The maximum facility
is GBP500,000 and it is committed until February 2017. Both
facilities have the option to continue for an additional year.
On 21 November 2014 the group entered into a new GBP800,000
convertible loan note with a major investor. The terms of this loan
note mirror those of the existing loan note in that they have a
fixed interest rate of 7.5%, a maturity date of 31 October 2017 and
a conversion price of 48p.
On 17 December 2015 the group entered into a new GBP500,000
convertible loan note with a major investor. The terms of this loan
note mirror those of the existing loan note in that they have a
fixed interest rate of 7.5%, a maturity date of 31 October 2017 and
a conversion price of 48p.
On 13 December 2013 Sara Green, the wife of Dr Stuart A Green,
CEO of the company, provided financial support to the company with
a loan of $1,015,000 (GBP600,000). The full amount of this loan
remains outstanding at 31 March 2016.
The convertible loan note, totalling $4,301,000 (GBP3,070,500),
is due to mature on 31 October 2017 and the directors are working
with investors to establish a mutually acceptable outcome.
The directors believe the assumptions used in preparing the
trading and cash flow forecasts to be realistic, and consequently
that the group will continue in operational existence for the
foreseeable future. The financial statements have therefore been
prepared on a going concern basis.
2.2 Foreign currency translation
2.2.1 Functional and presentation currency
Items included in the financial statements of each of the
group's entities are measured using the currency of the primary
economic environment in which the entity operates ('the functional
currency'). The consolidated financial statements are presented in
US dollars which is the company's functional and presentation
currency. The functional currency of the company's subsidiaries is
US dollars, therefore the majority of transactions between the
company and its subsidiaries and the company's revenue and
receivables are denominated in US dollars.
The US dollar/pound sterling exchange rate at 31 March 2016 was
0.704 (2015: 0.674).
3. Loss per share
Earnings per share is calculated by dividing the loss
attributable to equity holders of the company by the weighted
average number of ordinary shares in issue during the year.
Basic and Diluted
2016 2015
$000 $000
Loss for the financial year (787) (2,058)
============================== ========== =============
2016 2015
Number Number
of shares of shares
Weighted average number of shares for basic &
diluted loss per share
=================================================== =========== ===========
Basic 32,660,660 32,660,660
Effect of dilutive potential
ordinary shares:
Convertible loan note 5,654,867 4,268,451
Share options 3,518,763 2,868,069
Diluted 41,834,290 39,797,180
=================================================== =========== ===========
The basic and diluted earnings per share are the same due to the
group being loss making and the average share price during the
period being lower than the conversion price or exercise prices of
the convertible loan note and share options.
4. Notes to the cash flow statement
4.1 Significant non-cash transactions
During the year the group acquired property, plant and equipment
and computer software with a cost of $193,000 (2015: $139,000) of
which $161,000 (2015: $59,000) was acquired by the means of finance
leases.
Following an agreement with the loan note holders in October
2013 the term of the 7.5% Convertible loan note was extended. The
remaining GBP1,770,500 of the GBP3,541,000 loan note, issued in
September 2006 and amended in September 2011, will now mature on
the 31 October 2017.
4.2 Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and balances
with banks. Cash and cash equivalents included in the cash flow
statement comprise the following consolidated and parent company
statement of financial position amounts.
Group Company
2016 2015 2016 2015
$000 $000 $000 $000
-------------------------------- ----- ----- ----- -----
Cash on hand and balances with
banks 314 325 47 15
-------------------------------- ----- ----- ----- -----
The fair values of the cash and cash equivalents are considered
to be their book value.
5. Share capital and reserves
Called up share capital
2016 2015
$000 $000
=============================================== ====== ======
Allotted, called-up and fully paid
32,660,660 (2014: 32,660,660) ordinary shares
of 15p each 7,236 7,236
=============================================== ====== ======
Reconciliation of the number of shares outstanding:
Opening balance and closing balance 32,660,660 32,660,660
----------------------------------------------------- ----------- -----------
During the year the group purchased 23,152 (2015: 35,600) of its
own shares through ZOO Employee Share Trust Limited at an average
price of $0.11 (7p) per share. The total cost of the purchase was
$2,000 (2015: $4,000).
Reserves
The following describes the nature and purpose of each reserve
within owner's equity:
Reserve Description and purpose
----------------------------- -------------------------------------------------
Share premium reserve Represents the amount subscribed for share
capital in excess of the nominal value.
Accumulated losses Cumulative net losses recognised in profit
or loss.
Foreign exchange translation Cumulative exchange differences resulting
reserve from translation of foreign operations into
the reporting currency.
Convertible loan note Represents the equity element of the Convertible
reserve loan note.
Share option reserve Cumulative cost of share options issued to
employees.
Share warrant reserve Cumulative cost of share warrants issued
to customers.
Other reserves Created as part of the reverse takeover between
Kazoo3D plc and ZOO Media Corporation Ltd
in 2001.
6. Borrowings
Group Company
2016 2015 2016 2015
$000 $000 $000 $000
Non-current
---------------------------- ------ ------ ------ ------
Amounts owed to subsidiary
undertakings - - - 771
7.5% Unsecured convertible
loan note stock 4,301 3,715 4,301 3,715
Connected person loan 901 928 901 928
Other bank borrowings 637 518 - -
Finance lease liabilities 303 292 9 13
---------------------------- ------ ------ ------ ------
6,142 5,453 5,211 5,427
---------------------------- ------ ------ ------ ------
Current
---------------------------- ------ ------ ------- -------
Amounts owed to subsidiary
undertakings - - 9,701 9,701
Finance lease liabilities 142 105 4 3
---------------------------- ------ ------ ------- -------
142 105 9,705 9,704
---------------------------- ------ ------ ------- -------
Total borrowings 6,284 5,558 14,916 15,131
---------------------------- ------ ------ ------- -------
On 27 September 2006 the group issued $5,062,000 6% Unsecured
convertible loan note stock which was due to mature on 31 October
2011. The underlying value of the loan stock was GBP3,541,000.
Following an agreement with the loan note holders in August 2011 to
extend 50% of the loan note instrument for a further two years, the
loan note was restructured. The loan note issued, as a result of
the restructure, on 6 September 2011 was $2,823,000 7.5% Unsecured
convertible loan note stock and was to mature on 31 October 2013.
The underlying value of the restructured loan stock was
GBP1,770,500.
On 31 October 2013 the maturity of the loan note was further
extended to mature on 31 October 2017.
On 24 November 2014 a further loan note of $1,187,000 7.5% was
issued. The underlying value of the new loan note is GBP800,000 and
it is due to mature on 31 October 2017. On 17 December 2015 a
further loan note of $754,000 7.5% was issued. The underlying value
of the new loan note is GBP500,000 and it is due to mature on 31
October 2017.
The loan stock holder is entitled, before the redemption date,
to convert all or part of the loan stock into fully paid ordinary
shares on the basis of 1 ordinary share for every $0.7654 (GBP0.48)
of principal amount of loan stock.
The restructured convertible loan stock has been accounted for
in accordance with IAS 39 (Financial instruments: Recognition and
measurement). The fair value of the convertible loan note is not
considered to be materially different to the carrying value.
During the year ended 31 March 2016 the group replaced the
existing invoice financing arrangement with Crestmark Bank with one
from Bibby Financial Services (California) Inc in order to gain an
improvement in terms. The agreement with Bibby provides an invoice
financing facility of up to $2.5m against US customer invoices
raised by ZOO Digital Production LLC. This facility will be in
place until 1 February 2017 with an option to extend. Interest is
payable on a monthly basis and is charged for each day on the
outstanding balance with an interest rate of 5% above the LIBOR
rate with a minimum interest rate of 5.25%. An administration fee
of 0.20% is due on the face value of each invoice submitted and a
discount fee of 0.15% for each 15 day period for any invoice
outstanding after a period of 30 days. The principle outstanding at
31 March 2016 was $625,000 (2015: $518,000). This funding is
secured against the US trade receivables of ZOO Digital Production
LLC.
The group has an agreement in place with Santander Bank to
provide an invoice financing facility of up to $760,000
(GBP500,000) against certain customers' invoices raised by ZOO
Digital Limited. This is an annually renewable facility. The group
can draw on funding from the bank up to the lower of 75% of its
applicable UK company Trade receivables and GBP500,000. The
principle outstanding at 31 March 2016 was $12,000 (2015: nil).
This funding is secured as a floating charge over the assets of the
UK companies.
On 13 December 2013 Sara Green, wife of Dr Stuart A Green, made
a loan to the company of $1,015,000 with an interest rate of 10%.
The underlying value of the loan was GBP600,000 and the full amount
remained outstanding at 31 March 2016. This loan is secured as a
floating charge over the assets of the group.
Annual report and Accounts
Copies of the Report & Accounts for the year ended 31 March
2016 are available to view on the Group's website
www.zoodigital.com
The Report & Accounts for the year ended 31 March 2016,
together with the notice of annual general meeting, are expected to
be posted to shareholders during August 2016; an announcement to
notify shareholders of this will be made in due course. Further
copies will be available from the Company's Registered Office:
The Tower
2 Furnival Square
Sheffield
S1 4QL
Annual General Meeting
The Annual General Meeting of the group will be held at the
offices of finnCap, 60 New Broad Street, London EC2M 1JJ on 28
September 2016 at 10.30am.
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR RAMRTMBBMBIF
(END) Dow Jones Newswires
July 06, 2016 02:00 ET (06:00 GMT)
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