Optimistic forecast for listed software firm

ZOO Digital Group, which provides cloud-based localisation and digital distribution services to the entertainment industry, has recorded revenues of $29.8m (£23.8m) in its audited financial results for the year ended 31 March 2020.

This compares with $28.8m (£23m) for the previous year. The Sheffield-based business also made a reported loss/profit before tax of $(0.1)m (£78,000) compared to $1.3m (£1m) in 2019.

ZOO Digital reported net cash at year end of $0.7m (£560,000) with no debt other than convertible loan notes.

The firm says the COVID-19 pandemic has resulted in almost all its staff working from home, but notes this has had little impact on productivity impact and has not hindered its ability to recruit an extra 13 staff since February.

It adds recent contract wins and extensions have resulted in a significant increase in demand for additional functionality and services related to its technology platform.

Stuart Green, CEO of ZOO Digital, said: “The financial year completed has been one of considerable progress, in which we continued to demonstrate growth against our key strategic priorities.

“Trading in the first three months of FY21 has been strong, with first quarter sales currently expected to be at least 15% ahead of the equivalent prior year period.

“This is also reflected in similar underlying growth in current order books for both localisation and digital packaging services.

“Through our membership of the Netflix Preferred Fulfilment Partner (NPFP) programme we have been adding new customers and strengthening our relationship with some existing ones.

“Whilst it is not usual for buyers in our industry to commit to significant volumes of work in advance, the multiple significant media companies and digital distributors that now regularly use our services give us reason to expect that growth will continue throughout the year ahead.

“The market has shown considerable resilience during this challenging period and we are confident of continued momentum.

“We are satisfied we have enough visibility, and sufficient opportunities in our pipeline, to enable us to resume market forecasts, and look to the future with optimism.”