Business
Contract Wins and Trading
Contract Wins and Trading.
About this update from Zoo Digital Group Plc
[{"type":"text","content":"\n Zoo Digital Group PLC\n10 April 2008\n\n ZOO Digital Group plc (the 'Company')\n\n Contract win and trading update\n\n\nContract wins\n\nZOO Digital Group plc (AIM: ZOO.L), the digital media technology and services\ngroup, is pleased to announce that it has secured a material contract to deliver\nsoftware automation products including its recently launched Media Adaptation\nTool (MAT) to Walt Disney Studio Motion Pictures International. The contract\nwill provide a minimum income of $15 million over its fifteen year term.\n\nIn addition, Sony Pictures Entertainment has licensed ZOO's Templated Authoring\nSystem ('TAS') and will shortly be in production of standard definition DVD\ntitles using this innovative productivity tool. Through Sony the Board expects\nthat TAS revenues will increase considerably in the current financial year.\n\n\nTrading\n\nZOO announces that group turnover from continuing operations for the year ended\n31st March 2008 was approximately £3.3 million, an increase of 119 per cent\ncompared to the previous year. Losses before interest, tax, depreciation,\namortisation and exceptional items were £1.4 million, in line with management\nexpectations.\n\nThe acquisition of Scope Seven has significantly improved ZOO's ability to\npenetrate the US market. As anticipated, the termination of our relationship\nwith GDMX, announced in December 2007, has held back revenue growth but the\nDirectors believe that this has created a more stable business with higher\nmargins. The Board remain confident about the future prospects for Scope Seven,\nparticularly in light of the strong order book expected to generate significant\nrevenues.\n\nWe have seen a significant increase in the production of DVD games in the US\nthrough Scope Seven. A number of major US clients including Hasbro and Mattel\nare now providing a considerable throughput of new projects made possible\nthrough ZOO's DVD-EXTRA technology.\n\nThe uncertainties in the next generation home video market were resolved in\nearly 2008 as a result of Warner's and Toshiba's discontinuation of support for\nHD DVD. As a consequence, ZOO now sees significant opportunities in the area of\ntechnology and services for Blu-ray title production. We are accelerating the\ndevelopment of Blu-ray products which will be deployed by Scope Seven to provide\nservices for current a...