Zoo remains optimistic for future despite seeing losses deepen

ZOO Digital says it believes the business has the right platform for sustainable growth and is cautiously optimistic about its prospects, despite seeing losses deepen.

The Sheffield-headquartered provider of cloud-based media production services and software to global creative organisations, has reported a loss before tax of
 $2.677m, an increase from $1.196m in the previous year, as it announced its financial results for the year ended in March.

Zoo reported an adjusted EBITDA loss of $0.4m (2013 profit of $0.7m) and an adjusted operating loss of $2.1m (2013 $0.9m) on revenues of $9.6m, which have shrunk from $10.4m last year.

However, the group said the year under review has been a transitional one and has ended with ZOO having a more focused set of differentiated products and services, increased sales and marketing resources, and a greatly diversified customer base.

Stuart Green, CEO of ZOO Digital, said: “At the time of our interim results I stated that we had succeeded in creating a more flexible and focused business but that the board’s primary aim was to build sustainable growth in revenues. I am glad to report that I believe ZOO is well on this path. Billings in the second half were an improvement on the first half, a trend which I am pleased to confirm has continued into the new financial year.

“The company has succeeded in diversifying both its client base and revenue mix as well as reducing its exposure to the production of physical media. With the ability to deliver across all formats of digital content and increasing customer diversification, the board believes that we have the right platform for sustainable growth and, as we look forward, are cautiously optimistic about our prospects.”