Business
Pre-Close Trading Update
Pre-Close Trading Update.
About this update from Zoo Digital Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 1245H\n Zoo Digital Group PLC\n 23 March 2020\n \n \n \n \n 23 March 2020\n \n \n ZOO DIGITAL GROUP PLC\n \n \n (\"ZOO\", the \"Group\" or the \"Company\")\n \n \n \n \n \n Pre-close Trading Update\n \n \n \n \n \n ZOO Digital Group plc, a world-leading provider of cloud-based localisation and digital distribution services to the global entertainment industry, today issues the following trading update in respect of the year ending 31 March 2020.\n \n \n Group revenue for the year is expected to be approximately $30m, representing an increase of around 4% over the prior year and with H2 revenues up at least 12% over the first half. Localisation and digital packaging revenues are expected to grow by around 10% to $27m. \n \n \n The Company has successfully executed its core strategy of partnering with major media companies to provide localisation and digital packaging. This resulted in the company's first appointment to deliver end-to-end services, two further engagements as a preferred vendor and the successful deployment of ZOOstudio for managing OTT localisation and digital packaging operations. These recent successes demonstrate that our software, coupled with our industry knowledge and skills, are gaining traction in the market for Over The Top (OTT) localisation and digital packaging. We have continued to invest in our capacity to deliver these services throughout the period to take advantage of a growing market opportunity. As a result, the Company expects to report EBITDA for the year of not less than $2.2m, up from $0.4m in the prior year period.\n \n \n The success in winning new long-term service contracts and building the necessary software integrations has meant that revenues for FY20 have been weighted to the second half, with H2 revenues of approximately $16m, up 12% on last year. This has also impacted short-term working capital and the year-end cash position is expected to be an overdraft of circa $1m, utilising a third of our facility. Shortly after the year end we expect this position to reverse as our customers, primarily major global media companies, settle their invoices and cash should exceed $2m. The Board does not anticipate a requirement for any additional working capital.\n \n \n We are currently seeing a renewed focus on the localisation of back catalogue titles f...