Zoo Digital Group PLC Trading Update (9489B)
April 07 2017 - 6:45AM
UK Regulatory
TIDMZOO
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 GBP1
million to GBP2 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
END
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April 07, 2017 06:45 ET (10:45 GMT)
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