ZOO Digital Group plc (AIM: ZOO), a leading provider of end-to-end cloud-based localisation and media services to the global entertainment industry, today provides an update on trading.

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.

Following engagement with its customers, the Company has now secured improved visibility of work, with some extending until September 2024. Many orders are currently in progress and a growing pipeline of further projects over this period has been confirmed. The Company’s 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.

Appointment by a major film and TV distributor

In February 2024 the Company was appointed by another of the major film and TV distributors as a primary vendor for dubbing in several languages and a preferred partner for subtitling of global languages. The Board expects to receive first firm orders for this new engagement in the coming weeks. Furthermore, due to the strong demand for European dubbing, the Company plans to continue to expand its capabilities in Spain, Italy, and Germany.

Appointment of Senior Independent Director

The Board is pleased to announce that Nathalie Schwarz, who has served as a non-executive director since January 2022, is appointed as the Senior Independent Director. Ms. Schwarz will continue to serve as chair of the Remuneration Committee and member of the Audit Committee.

The persons responsible for arranging for the release of this Announcement on behalf of ZOO are Stuart Green, Chief Executive Officer and Phillip Blundell, Chief Financial Officer of ZOO.

*The Company understands market consensus for FY24 to be revenue of $37.6 million, EBITDA adjusted for share based payments loss of $14.0 million and net cash of $1.6 million.