ZOO figures in line to improve
ZOO Digital is on track to make an operating profit of around £800,000, the company said today.
In a trading update, the media software firm also said it expected to report an EBITDA of around £1.35m ($2.2m) for the year to the end of March.
Both figures would represent an improvement on the previous year but the company warned that revenues had fallen to around £8.6m ($14m) as a result of a change in the way customers are billed for some outsourced services and a “short-term slowdown of orders during organisational changes within a major customer”.
Stuart Green, chief executive of Sheffield-based ZOO, said: “I am pleased with the group’s bottom line performance despite revenue falling slightly short of expectations.
“The short term slowdown in revenues from a major customer is now reversing and I am encouraged to see activity levels in line with our previous expectations. We are also currently working with a number of new customers and prospects to apply our proprietary software to a broader range of authored content, addressing substantial additional markets.
“We believe this will lead to further diversification of our client base and therefore we continue to view the future with great confidence.”
ZOO said its year end cash balance, of around £369,000, in addition to its overdraft facility would give it enough working capital for the foreseeable future.
