the opinion posted by mortal1ty gets my vote. |
If you've been at this game awhile you get to recognise that the trigger negative event phase is always far shorter than the recovery phase.
The key points are that they are trading profitably and have sufficient cash resources to meet demand. ZOO's business model is far more flexible than the traditional model. If ZOO's competitors have difficulty scaling back up - this will work to ZOO's advantage.
Demand is recovering strongly 1Q25 up 35% on 4Q24 despite their clients still getting up to speed. Demand is now expected to return to pre-strike levels by late 2025 so we can foresee a trajectory of improving results reported against soft comparators. Profitability and margins will improve likewise. Brave investors are being offered the opportunity to get 'back to the future' and re-live ZOO's growth phase. |
The strike was 6 months in length and ended almost a year ago.
You would think the business would have fully bounced back by now. I think some part of the market expected this. To see a rather mediocre recovery after a halving in sales raises questions.
Looks like some structural issues at work here as well which is only partly offset by new clients. |
You're a burp beeksy |
Great value here now!
STRONG BUY! |
Lol
Burp downwards here, surprise surprise |
Agree with rimau1 - this report more or less reads as in-line with expectations, which is fine (although some traders may treat it as a "sell the news" moment early doors).
The presentation tonight and the update in September might put some more meat on the bones of the 2025 upside and potential to outperform. |
A tad disappointing .As they say it wasn't ahead due to slower than anticipated orders from larger clients . All takes time with these big organisations .They are at break even . And big client receipts reduced from 78 percent to 58 percent of total sales which is a positive as they expand in Europe no doubt .A good long term recovery bet . |
I doubt they are out of the closed period with a further update due in September but lets see |
The next update in September will give more details of trading to date for H1 which is looking good.
From the rns;
Our major customers have not yet provided full order schedules for Q3 onwards; however, the Board expects further revenue growth and an EBITDA profit in H1 2025, putting us on track to meet market guidance for the full year. |
It all reads & bodes well. It will be interesting to see if, now that Directors are out of the Close Period, they make further share purchases. The Purchase of 171500 by Stuart Green at 29p on 26th March helped spark the resurgence in confidence and share price appreciation. More purchases would be a nice sign alongside the positive newsflow. |
You have to give zoo and the team credit. To recover so quickly from the perfect storm as they call it and give forward guidance which will put the share price back to 200p next year is an amazing achievement. Presentation later today will be a less restricted and may include confirmation of further orders and partners. |
It was NT to buy yesterday @ 64p just before the close.
I expect strong buying at the open provided it's not NT again!!! |
Buy big on the initial dip |
ZOO give a lot of market context and detail which i will read later but key for me is in line with expectations, fully funded for FY25 and FY25 will be profitable. Also a further update will be provided in september which makes me think they were trying to get further orders signed off in time for results but just missed the window. If these orders land FY25 will be an exceeds IMO. I will add on any dips this is a long term hold. |
Back to £2 and more in 12 months time ???
no ramp intended |
 As the Company entered FY25 and following the end of strikes, with market conditions that increasingly favour ZOO and the cost reductions and restructuring now implemented, the Board believes that ZOO has built an efficient platform to capitalise on the industry recovery. Since the disruption began ZOO has retained all its customers which, in some cases, have reduced their vendor pools, has strengthened some relationships and added new customers. It has continued its global growth initiative by making investments in partners located in South Korea, Spain, Italy, Turkey and Germany, thereby expanding dubbing capacity and capability in the associated key languages. It has opened a new facility in Chennai which not only extends the Company's follow-the-sun programme for media services through access to cost-efficient resources but serves as a hub for dubbing of languages spoken in southern India. The reduction in overall headcount in the UK and USA, needed to realign costs with revenues in the short to medium term, has significantly lowered the break-even position which, combined with the new facility in India, results in improved efficiency by decreasing unit cost of production, thereby enhancing ZOO's operational gearing. |
good call ZICO
BUY some GEX too for 20p by xmas.atb |
It's all about the outlook for FY25 and this is looking very good as the recovery gathers momentum |
A more leaner company for FY25:
The reduction in overall headcount in the UK and USA, needed to realign costs with revenues in the short to medium term, has significantly lowered the break-even position which, combined with the new facility in India, results in improved efficiency by decreasing unit cost of production, thereby enhancing ZOO's operational gearing. |
One to forget....at least the outlook is promising. |
As i posted yesterday:
" ZOO recovery gathers pace following year of industry-wide disruption "
Current Trading and Outlook
Improved trading in FY25Q1 with sales up 35% over the prior quarter.
Cost reductions implemented in FY24 led to an EBITDA profit for FY25Q1. |
Somethings bound to leak out of the 9.30 meeting, although not quite sure what 'sell-side equity analysts' are, and what information is imparted to them. |
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