£25.6m annual revenue forecast for listed software firm

ZOO Digital Group expects its total revenue for the year ending 31 March 2020 to be $30m (£25.6m).

The Sheffield-based company provides cloud-based localisation and digital distribution services for the entertainment industry.

Its latest trading update says its anticipated revenue would be an increase of around 4% over the prior year, with second half revenues up at least 12% over the first half.

Localisation and digital packaging revenues are expected to grow by around 10% to $27m.

And the company expects to report EBITDA for the year of not less than $2.2m, (£1.9m) up from $0.4m (£342,000) in the prior year period.

Its update adds: “Regarding original content, the COVID-19 outbreak is impacting our customers, with new title production being significantly hampered due to restrictions on travel and group gatherings.

“However, the company’s strategy of delivering services through proprietary cloud-based software provides natural resilience in these circumstances; steps have already been taken for staff to work from home without any significant disruption to production, and our network of freelancers is largely unaffected.

“As we approach the start of the new financial year we are currently experiencing higher levels of interest in our cloud-based localisation services from major media companies.

“Given that the full impact of COVID-19 on our customers remains unclear, the Board does not believe it is prudent to provide guidance on the potential full year outcome for FY21 and FY22 at this time.

“Due to the robustness of ZOO’s business model and the strength of its customer relationships, the Board is confident of being well positioned for growth and remains confident in the long-term success of the business.”