Zoo Digital Share Discussion Threads

[simonparker5] 29/3/2016 12:34

May not be the biggest director purchase but it's all positive. Why buy £2000 of convertible loan notes, converting at 48p, rather than shares in the open market?

RNS Number : 4025T

Zoo Digital Group PLC

29 March 2016

ZOO DIGITAL GROUP PLC

("ZOO" or "the Company")

Director's Dealing in Convertible Loan Note

ZOO Digital Group plc, the provider of cloud-based media production software and services to global creative organisations, was notified today that Roger Jeynes, Non-Executive Chairman of the Company, has today purchased from a third party an additional GBP2,000 of the Company's existing unsecured convertible loan notes of GBP3,070,500 (the "Loan Notes"), in addition to his GBP23,000 existing interest in Loan Notes, taking his total interest in Loan Notes to GBP25,000.

The key terms of the Loan Notes are primarily that they accrue interest at 7.5 per cent. per annum (payable half-yearly) and that the conversion price of the Loan Notes are 48 pence per ordinary share of 15 pence each in the capital of the Company ("Ordinary Shares") converted.

Following the above transaction, Mr Jeynes' beneficial interest in 120,000 Ordinary Shares, representing approximately 0.37 per cent. in the Company

[love it] 29/3/2016 11:54

Couple more sells I guess there has to be profit taking at some stage. I'm holding out for the next trading update hoping there is a surprise on the upside.

[love it] 29/3/2016 11:34

Somebody has gifted the mm's a lovely profit this morning.

[simonparker5] 29/3/2016 09:44

The chart suggests that if we can push through this level we could see a rise into the teens.

[love it] 29/3/2016 09:04

mm's not playing again 9.77-10.7p

[love it] 28/3/2016 20:12

Great posts sounds very positive. Added another 5k On Thursday at 10.7p

[philjeans] 28/3/2016 17:21

Some very useful info there guys; many thanks.

I think April will see this double, or more.

[mudbath] 28/3/2016 11:18

Thanks for your comprehensive resume martina pescatore.

I would agree with your conclusion where you " can see that digital media content is being used more and more and Zoo appear to be in the right place at the right time, with the right customers already in place."

The results would have looked significantly better over the past couple of years had it not been for ZOO's(now reduced)dependence on that one major client where related revenues suffered from "significant disruption".

2014(Finals)
The customer diversification was much improved in the year with the dependence on the largest customer reducing from 87% in the prior year to 68% in the current year, a downward trend which is continuing into the new financial year. The Group is now working with five out of the six major Hollywood studios, compared to three in the prior year, as well as several tier-two studios and other corporations. Although customer relationships continue to be excellent, it has been a key focus to reduce the concentration of our revenues from particular customers, and this significant progress is very pleasing.

2015(Finals)
The results for the year ended 31 March 2015 reflect substantial progress by the Group, evidenced by the 20% increase in annual revenue to $11.5m (2014: $9.6m) and further diversification and expansion of our customer base. This was achieved despite significant disruption from corporate activity in one of our largest customers, which depressed trading during the second half and resulted in an EBITDA loss for year of $0.7m (2014: loss of $0.4m).

2015(Sept Interim)
A 5% decline in sales to $6.6m (H1 2014: $6.9m) was due primarily to a major client's restructuring, which commenced in H2 2014, and that we understand has finally concluded. During the corresponding prior year period this client contributed one third of our total sales. For the period under review the Board is pleased to report significant progress from new clients, with overall client numbers growing by over 30%, contributing sales that have almost replaced the shortfall caused by this disruption..... Following the conclusion of our client's restructuring we are now in discussions with the aim of re-establishing some of this former business.

For ZOO to have almost replaced that "lost" 30% of revenues through growing overall client numbers by over 30% is,imo,quite a spectacular performance and one which bodes well for the current and future trading periods.

Given this level of (obscured)growth,we might well see investors surprised on the upside when ZOO next communicates with the market.

The icing on ZOO's cake would be if their major client were to re-establish a significant element of their former business,for this,when allied to existing revenue growth, would seemingly serve to propel ZOO's profitability to a level which would necessitate an upward re rating of some magnitude.

[martina pescatore] 28/3/2016 09:28

More good news for Zoo, indirectly.

As we already know, Holywood Movie companies, particularly the big six, are constantly striving to increase revenues from overseas markets. The Batman v Superman movie has now reportedly taken £300 million at the box office worldwide since opening five days ago. A fifth of the revenues have come from China, according to news reports this morning. Warner Bros made this Movie and Zoo have them as a customer.

No direct link of course, but an American movie will of course require dubbing or subtitling for the Chinese market (and all the other overseas different language markets). When the movie hits the DVD/Video/VOD/streaming market, subtitles or dubbing will be again required if the movie company is going to maximise revenues, and the subtitling/dubbing system will need to be cost effective and compatible with all those different devices (and those devices with different compatibility that haven't yet been created of course) out there upon which consumers will view this movie, or any other movie/tv content. Zoo's software allows this.

This illustrates to me that there is considerable growth potential out there for Zoo and considering the way people are now choosing to consume movies and tv content either at home or on the go (on devices), the market is likely to be growing for some time yet.

I am under the impression that Zoo could really be on to something with this software, especially as all of the major players (big six Holywood companies, Apple, Netflix and BBC, plus others) already use Zoo.

Zoo also have many other revenue sources of course, some of which link very nicely to their ZooSubs offering, such as their workflow management software.

In addition to this, when investing, new sources of growth are of especial interest and a company that continues to innovate has the opportunity to add new sources of revenue from these innovations.

For example, take a look at the latest news item on Zoo's website on the following link

hxxp://www.zoodigital.com/zoo-digital-metadata-service-nab-2016/

Zoo say ..."ZOO Digital will unveil its enriched metadata platforms and services, providing a groundbreaking way to create and manage metadata for the video industry, at NAB 2016 next month in Las Vegas. The innovative service, powered by revolutionary ZOOcloud, is set to transform the way metadata is prepared to offer audiences a rich and dynamic way to search premium TV and movie content..."

Zoo say that this will be the next generation of metadata services. What is enriched metadata, I hear you ask, well Zoo provide the answer to that and give a hint as to its potential in the following paragraph from the news item...

"Enriched metadata is contextual information associated with time codes in video content to provide searchable, scene-based descriptions. It reveals a wealth of information related to what’s happening on-screen, such as soundtracks, actor biographies and character back-stories. Furthermore, it is set to become increasingly important for making video content more discoverable by search engines and a point of differentiation for major online retailers, such as Amazon Prime’s X-Ray feature."...

Zoo show clearly that they are not standing still here, they clearly understand what the industry's needs are. This enriched metadata news item is in fact something I have been watching out for, for some time. I cannot verify a connection here, but I remember the news article from 2013, see following link, where Zoo did some research with Technology Strategy Board (TSB) co funding into metadata, from which this new product offering may have spawned.

hxxps://interact.innovateuk.org/zh/success-story-display-page/-/asset_publisher/b61wJfKPbeu8/content/zoo-digital-tames-the-data-jungle

This all sounds very good and reassuring to me, as an investor in Zoo. How this impacts on the financial figures will be interesting naturally. Zoo are likely to announce a profit for the financial year end 31 March 2016, according to their previous statements and the lack of a trading update before the year end, if I have interpreted correctly. Costs are likely to be higher, as revenues are likely to be higher, in my view. But I am expecting a PBT range from £0.5M to £0.75M

Moving forward, new products/services/software that were launched in the last financial year will now have had only their first full year of earnings revenues and in a growing market, the following financial year should be even better. Add to this the new services/products/software as a result of in-house innovations, which again appear to be in a growing market, then it provides for good visibility of potential future growth for some years to come.

Zoo Digital report in US Dollars. Using an exchange rate of £1 = $1.42, we have the following:

For the six months to 30 September 2015

Revenues were $6.6M (£4.65M) (H1 2014: $6.9)
EBITDA more than doubled to $0.9M (£0.63) (H1 2014: $0.4)
Operating profit $0.4M (£0.28) (H1 2014: loss of $0.3M)

All for a market cap of less than £4 million at the present 10p per share, plus circa £4 million of debt of course (£3.1 of which is in convertible loan notes, exercisable at 48p per share to existing long term shareholders, including the highly respectable Katie Potts' Herald Investment Trust).

The financial numbers from Zoo have not read too well for a few years now, but I am hoping that a new trend has begun as the company appears to have turned things around. Take a look at the Zoo website, it gives a wealth of information on the company. Whilst I do not pretend to completely understand all of their offerings or their markets, I can see that digital media content is being used more and more and Zoo appear to be in the right place at the right time, with the right customers already in place.

All IMHO, NIA and DYOR, but what do others think?

[napoleon 14th] 25/3/2016 14:47

singer8 filtered

[singer8] 24/3/2016 18:46

tops 1767 followers
hatetrader 114 followers LOL
shows who is RESPECTED and TRUSTED
and who is the CON MAN and FAILURE

[sharetips6] 24/3/2016 14:44

rollover put through as 2 sales there so do not fall for mm games

[love it] 24/3/2016 10:52

singer8 24 Mar'16 - 10:37 - 1216 of 1217 0 0 (Filtered)

singer8 24 Mar'16 - 10:40 - 1217 of 1217 0 0 (Filtered)

[singer8] 24/3/2016 10:40

tops 1767 followers
hatetrader 114 followers LOL
shows who is RESPECTED and TRUSTED
and who is the CON MAN and FAILURE

[singer8] 24/3/2016 10:37

BEWARE the CON man hatey also called trader-mick on LSE

once a liar and con man always a liar and con man
sharetips6 aka trader-mick aka hatey
oh dear hatey you are such a sad troll

hatetrader
34simon
55investor
27howard
29howard
21trader
tradermick
tobytime
norbus
hatetrader1
hatey

[sharetips6] 24/3/2016 10:23

If you cannot spot the obvious mudbath then hey ho :-))

Have to agree to disagree on that one

[mudbath] 24/3/2016 10:06

Any seasoned ZOO investor will recognise the continuing trading pattern where PIs demonstrate their optimism with a steady flow of modest buys,only for the "tap" to open providing MMs with ample stock.

I believe therefore that your bet,sharetips6,would be well and truly lost.

[sharetips6] 24/3/2016 09:48

I'd love to have a bet the 100k sale was the same person who has been buying small amounts including the 5k and 10k first thing then gave up and sold the lot for a whopping loss.

Add up the round trades, 25k,20k, 10k, 15k followed by 3 x 5k's = 85k

Add the 2 today = 100k then 100k sale 9.6p

Why on earth are they trying to beat the mm's in this stock with wide spread
it's throwing money down the drain.

[love it] 24/3/2016 08:51

Looks like the buyer has returned to try and push it mm's not playing.

[ff2345] 24/3/2016 07:22

Ticker has moved by over 1.1m per week over the past 4 weeks.....at least 10% up from the previous weeks. Looks like business is going well in the run up to the year end. Good!

[singer8] 23/3/2016 18:13

tops 1767 followers
hatetrader 114 followers LOL
shows who is RESPECTED and TRUSTED
and who is thought to be a CON MAN and FAILURE

[singer8] 23/3/2016 18:10

BEWARE the CON man hatey also called trader-mick on LSE

once a liar and con man always a liar and con man
sharetips6 aka trader-mick aka hatey
oh dear hatey you are such a sad troll

hatetrader
34simon
55investor
27howard
29howard
21trader
tradermick
tobytime
norbus
hatetrader1
hatey