Zoo Digital Share Discussion Threads

[chatchat] 22/5/2024 09:43

Yesterdays RNS was Liontrust

[z1co] 22/5/2024 09:38

Forecast changes: Progressive published a research note on the morning of the RNS, revising up FY Mar 2024F numbers to reflect guidance, but leaving FY Mar 2025F largely unchanged. In the past, I have flagged when companies like SDI, ETP, SCE and Eleco have made upbeat statements in their RNSs, but asked their brokers to cut numbers. ZOO looks to be a similar example, though they are quietly asking analysts to keep forecasts unchanged rather than reduce next year’s EPS, presumably so that in 6 months’ time management can announce another “ahead of expectations” RNS.

The disruption from the strike seems to be temporary, and the shares are off -85% since their peak in March last year. So this could be an interesting recovery play, if you feel confident that now revenue is forecast to recover to $66m in FY Mar 2025F, the margin will approach double digits as it did in FY Mar 2023.

[lagansider] 22/5/2024 09:35

It could be either, neither, or both of Liontrust or Cannacord. We will not know until next RNS re Holding.

[parob] 22/5/2024 09:25

Yeah they were selling I know that but there is no evidence they are still selling

[allstar4eva] 22/5/2024 09:16

See the RNS?

[parob] 22/5/2024 09:09

No proof whatsoever that that's the case.

[7rademark] 22/5/2024 08:52

Liontrust still dumping stock. 5m shares left to sell.

[z1co] 22/5/2024 08:11

I've been busy accumulating for some time , having sold most of my holdings in CSFS.

[allstar4eva] 22/5/2024 08:02

Guess who's bought back in...

[z1co] 21/5/2024 18:44

This is huge:

Independent analysis suggests that the translation and localisation services market for media companies should double in size to $3billion a year by 2030, and Zoo is a leader in the field.

Green is ambitious too, targeting annual sales of $400million by 2030, with profits rising sharply alongside. The target seems well within reach. The big beasts of streaming are battling it out to produce the best shows and the more languages they are translated into, the more subscribers they can reach.

[z1co] 21/5/2024 18:43

MIDAS SHARE TIPS UPDATE: Zoo Digital proves perfect sequel to Netflix: Firm helps streaming giant translate shows into dozens of languages

By JOANNE HART, FINANCIAL MAIL ON SUNDAY

UPDATED: 12:16, 25 October 2022

Netflix has had a rollercoaster year. Having been an American stock market darling, the stock tumbled when subscription rates went into reverse in early 2022.

Now, they are on the rise again. Last week, the firm reported a record 223million paid subscribers with several million more expected to sign up before the year end.

Once, Netflix was the only streaming service in town. Today, competition is fierce, as Disney+, Apple TV+, Amazon Prime and a host of others battle for viewers' wallets.

Increasingly, they do so by producing their own shows, hits such as Squid Game or Ted Lasso, only available on the network that created them, but streamed to subscribers around the world.

Zoo Digital helps to make it all happen. The firm has pioneered a way of using software to allow films and series to be translated into dozens of different languages, so audiences from Kathmandu to Sao Paulo can watch whatever they fancy in their local tongue.

Chief executive Stuart Green has amassed a network of 10,000 freelance language specialists, including subtitle creators, dubbing experts, voice actors and directors. Using Zoo's kit, they can work from home, with just a computer, internet connection and, in the case of actors, basic recording equipment.

The ease of the process – and the quality of the work – have allowed Sheffield-based Zoo to build relationships with all the streaming giants, including Disney+, which is behind the unexpectedly popular series Welcome To Wrexham, now available in dozens of languages.

Last month, Zoo said business was brisk, with first half sales expected to increase almost 90 per cent to $51million (£45million) and plenty of new contracts on the books.

Brokers expect full year revenues of $95million for the year to March 2023, with profits more than doubling to $6.9million and further strong increases pencilled in for the year ending March 2024.

Green is ambitious too, targeting annual sales of $400million by 2030, with profits rising sharply alongside. The target seems well within reach. The big beasts of streaming are battling it out to produce the best shows and the more languages they are translated into, the more subscribers they can reach.

Independent analysis suggests that the translation and localisation services market for media companies should double in size to $3billion a year by 2030, and Zoo is a leader in the field.

Midas verdict: Midas recommended Zoo in January 2021 when the shares were 79p. Now they are £1.43 and brokers believe they should reach £2.50 within the next year or two. A strong hold, at the very least.

[z1co] 21/5/2024 18:40

Management highlighted that the order pipeline from major customers underpins an
expectation of a strong recovery in revenues in H1 FY25. With FY24 revenue at least $40m, (H1 FY24 at $21.4m), we assume that the second half is skewed to the final quarter. At the interim results at the end of November 2023, ZOO stated that following cost-cutting measures, it now needs just over $13m of turnover per quarter to be breakeven at the EBITDA level (c.$4.4m a month).

We believe that the company is now operating at around this level of turnover per quarter and on this basis would be breakeven in FY25E with turnover of $52m. The positive operational gearing from any further recovery in the industry post the 2023 industrial action means any turnover above this level would materially improve EBITDA. In maintaining our FY25E revenue forecast of $65.9m, we assume there is a partial return to business levels seen in FY22 ($70m sales) and FY23 ($90m sales).

From Progressive Equity Research

[z1co] 21/5/2024 10:10

It's very clear from their TU's that business is accelerating month on month and the next trading update could also be well ahead of expectations.

[z1co] 21/5/2024 10:05

From their trading updates:

With January invoicing the highest month since April 2023, the Company is beginning to see an acceleration of its pipeline with work expanding in March and April 2024.

Customer demand has continued to recover with March 2024 invoicing the highest month since April 2023 following acceleration of the Company's pipeline.

[z1co] 21/5/2024 10:01

!FOLLOWFEED

26 March 2024

Trading Update

Current Trading

Following the trading statement of 24 January 2024, the Company has since received further clarity on timing of projects and is now receiving orders relating to work on feature films and TV shows that have been completed following the industry strikes of 2023 that brought productions to a halt. With January invoicing the highest month since April 2023, the Company is beginning to see an acceleration of its pipeline with work expanding in March and April 2024.

As a result, the Company expects to beat revised market guidance for FY24* with revenues of at least $40 million. Consequently, the anticipated EBITDA loss will be reduced. Net cash on 31 March 2024 is expected to be at least $3 million, also higher than revised market expectations, and although the Company has no debt it intends to renew its current undrawn facilities when they fall due.

13 May 2024

Current Trading

Customer demand has continued to recover with March 2024 invoicing the highest month since April 2023 following acceleration of the Company's pipeline. Work has continued to expand throughout March and April 2024 and visibility extends to September 2024. Revenues for FY25 Q1 are expected to be 36% up on FY24 Q4 which, together with recently implemented cost savings, is expected to result in EBITDA at break-even in Q1.

The Company has now received dubbing and subtitling orders from the major film and TV distributor for which it was recently appointed as a primary vendor as referenced in the announcement of 26 March 2024.

Year-end net cash on 31 March 2024 was $5.3 million, significantly better than indicated previously following stronger collections than anticipated in the month of March.

[s34icknote] 21/5/2024 09:34

14 July trading update 2 months away

[gjltech744] 21/5/2024 09:08

When do we get our next news RNS? (Roughly)

[gjltech744] 20/5/2024 12:30

still consolidating at just over 60p

[s34icknote] 17/5/2024 07:32

Not with 2000 shares traded !!

[gjltech74] 17/5/2024 05:59

hopefully we can break out today

[s34icknote] 16/5/2024 12:39

61 the new 36p level .

[allstar4eva] 16/5/2024 10:49

Feels like someone is happy to hoover up stock at this level

[gjltech744] 15/5/2024 12:55

yep, nice consolidation and bull flag sat just above 61/62p, ready for the next leg up

[allstar4eva] 15/5/2024 10:57

Consolidation may be over...

[parob] 15/5/2024 09:56

RSI cooling whilst this consolidates around the 60p level. Healthy for the next move up.