Zoo Digital Group PLC Year End Trading Update and Notice of Results (7030L)

TIDMZOO

RNS Number : 7030L

Zoo Digital Group PLC

23 April 2018

ZOO DIGITAL GROUP PLC

("ZOO", the "Group" or the "Company")

Year End Trading Update and Notice of Results

ZOO Digital Group plc, the provider of localisation and digital distribution services for the global entertainment industry, is pleased to provide an update on trading for the year ended 31 March 2018.

As previously indicated, the growth experienced in the business continued through the second half of the financial year. The Group expects to report full year revenue of at least $28.0m (31 March 2017: $16.5m), leading to Adjusted EBITDA* of at least $2.3m (31 March 2017: $1.8m). Gross cash as at 31 March was $2.4m (30 September 2017: $0.7m), with no other material borrowings other than its long-term convertible loan notes. Localisation services (being subtitling and dubbing) have continued to be the main driver of this growth and will represent in the region of 74% of overall revenue (31 March 2017: 52%).

The demand for localisation services continues to grow and, in order to satisfy this demand, ZOO has been steadily increasing the number of quality voice actors and dubbing professionals with whom it engages. Pleasingly, the Group's growing reputation in the market is helping to engage with these professionals, enabling services to be fulfilled across a growing number of languages.

The Group was also encouraged by the level of industry feedback and acclaim that ZOOdubs and the associated dubbing service achieved at the NAB show in Las Vegas, held between 7 - 12 April 2018. The level of interaction with senior individuals from major players within the industry and the resulting enquiries underlines the confidence that the Board has in the Group's long-term opportunity, particularly in respect of its localisation services.

Given the importance of localisation services, the Group intends to re-classify the costs of the internal staff responsible for fulfilling client projects as a cost of sale rather than as a central overhead as previously, for the purpose of reporting its final results and on an ongoing basis. The Board believes that this will be more representative of the Group's trading and will have no effect on the reporting of its overall profitability.

ZOO expects to publish its full year results in the week commencing 2 July 2018.

The Company notes that the process for appointing a new Chief Finance Officer is ongoing.

Stuart Green, Chief Executive of ZOO, commented:

"We are pleased to confirm guidance for the full year results. We continue to see momentum in the business, driven by our localisation services, and remain optimistic for the future."

* Adjusted for share-based payments.

This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR").

For further information please contact:

 
 ZOO Digital Group plc 
  Stuart Green, Chief Executive 
  Officer 
  Helen Gilder, Chief Finance           [phone] 
  Officer                                3700 
 FinnCap 
  Henrik Persson / Emily Watts 
  (corporate finance)                   [phone] 
  Camille Gochez (corporate broking)     0500 
 Alma PR 
  Josh Royston / Caroline Forde         [phone] 
  / Helena Bogle                         4218 
 

About ZOO Digital Group plc:

ZOO Digital is a provider of services allowing TV and movie content to be subtitled and dubbed 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 localised 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

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April 23, 2018 02:00 ET (06:00 GMT)