Zoo Digital Share Discussion Threads

[mon3ybag5] 05/8/2024 09:17

Z1co, thanks for the reply

Just focussing on the cash position, trying to add value to the body of knowledge here, not talking about revenue or growth etc

Youve literally said in your reply you would be concerned if it was decreasing not increasing

There is a real chance that the cash position at next update is lower than 5.3m given the 5.3 beat expectation due to timing.

I'm making the point that I won't see that as a bad thing as we know the 5.3m was toppy.

[toby hall] 05/8/2024 07:20

Triple Top

[s34icknote] 04/8/2024 12:25

It's also when a company goes from growth stage to maturity when the profits poor in as no more investment is required !!!

[z1co] 04/8/2024 12:00

Posted by Verulamium:

Ludicrous headline, but ZOO's picked as one of 3 shares here:

How to Turn $1k into $100k With These 3 Micro-Cap Growth Stocks

[z1co] 04/8/2024 08:35

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] 04/8/2024 08:35

For newbies:



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] 04/8/2024 08:07

Moneybag

It's always a good sign when a company's cash position is increasing and especially if it's increasing better than expectations.

I would have been concerned if it was decreasing rather in increasing.

The market will NOT be looking at the absolute cash position as being quoted by you but it will definitely be looking at over all trading of the business for the current year to date and the outlook for FY25.

In their March trading update they said quote:

"Order book for FY25 Q1 is currently up by 30% on FY24 Q4. This order pipeline from major customers underpins an expectation of a strong recovery in revenues in FY25 H1. Despite the implemented cost savings which have resulted in expected Q1 direct staff costs 30% below the prior year period, the Company is well positioned to take on increased levels of business as the industry reopens."

Then in the May trading update was even more bullish and they said:

"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."

I am very optimistic that the strong traction the company experienced till March will have continued over the last 4 months.

This and the outlook for Q2 and H2 is what the market will be looking for.

As always dyor etc.

[mon3ybag5] 03/8/2024 23:52

My view on the stronger cash position, given the guidance was "due to stronger collections", is that the favourable cash position is due to timing, rather than and sustainable or upward trending cash.
We could therefore see a reduction in cash position if timing is adverse, where the underlying trend is actually favourable

I do worry slightly that the market may be looking at the absolute cash position in isolation as opposed to its real trend

[z1co] 03/8/2024 17:19

You could be right but last year the results were on the 10th which happened to be Thursday and this year 8th August will fall on a Thursday.

Either way results will be very soon and i'm more than confident the outlook for Q2 and especially H2 will be very upbeat.

Their last trading update in May clearly showed the business gaining traction month on month for Q1 and this will likely to accelerate during Q2 and H2.

[s34icknote] 03/8/2024 15:15

I'm guessing Monday 12 th

[z1co] 03/8/2024 07:32

Following stronger collections in March that were much better than expectations , year end cash was SIGNIFICANTLY better than expectations.

Cash at 31/03/2024 was $5.3m than what the market was expecting of $3.7m.

This trend will have most likely continued over the last 4 months.

If the company has traded AHEAD of expectations then the share price will really explode to the upside.

[z1co] 03/8/2024 07:11

Results will be announced in the coming week last year were on 10/08/2023

From their last TU in May:

The CEO said that the board is confident of AT LEAST meeting FY24 market expectations

He also said that the current has started very buoyantly , 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.

As the recovery gathers momentum the share price will finally break out of the current of 61p to 66p and RISE massively higher towards £1.

[caveater] 02/8/2024 22:53

Ahh, so they may still be selling......4.89% just under 3,000,000 shares, shouldn't be long now.

[s34icknote] 02/8/2024 17:09

15 th April Canna cord reduced to 4.89 percent

[microscope] 02/8/2024 13:21

If you put in a single large order, think you can nowadays wait to announce once it's all filled, say 5pc of a company won't be filled all at once, so you can wait.

Something I read on advfn - not sure if i's accurate. I know if you drop below 3pc, it should be announced immediately.

[grahamytrain] 02/8/2024 09:11

They am have to announce when they fall below a certain percentage, anyone know that last time there was an RNS on this? There again folk are sick of waiting for news and may have just moved in hope of better things.

[s34icknote] 01/8/2024 15:30

And a few larger blocks

[s34icknote] 01/8/2024 15:30

Reckon canna-cord still selling

[s34icknote] 31/7/2024 19:36

From lse chat board The cinematic Box Office seems to have been picking up strongly of late what with Twisters surprising massively to the upside, Wolverine and Deadpool also opening far stronger than expected and an abundance of childrens movies for the summer holidays. I also noted Everyman Cinemas update last week where they were confident of meeting full year meeting expectation and cited a good slate of films right through to year end.Outwardly it has the appearance of things getting right back to normal after the writers strike and these successes will only encourage more investment and accordingly more work for us.

[s34icknote] 31/7/2024 14:27

Cannacord also selling has held it back

[s34icknote] 31/7/2024 14:26

Yep Bank balance was revised from 1.3 m to 3.4 m then 5 million . So avoided borrowing. It's all about whether they are back to pre strike levels , plus the additional big client on board that only started giving them work in March .If back to pre strike levels off to the races , if running as expected and above expectationsThen may be a run up to 90p /120 p Was as high as 240 pre strike levels with huge growth prospects .

[photon] 31/7/2024 11:44

That already got priced in, as did the start of the recovery. What matters to the share price direction now is current trading and near term expectations. Those will be the aspects of the results statement that will drive sentiment and determine the next share price level. All kind of obvious really.

[scantrader] 31/7/2024 11:38

The results will be reporting a big loss for the year. (See the RNS guidance in March - just slightly less awful than the previous consensus forecasts )