Media localisation firm expects return to profits after weak Q4

Cloud-based media localisation specialist Zoo Digital said slower than expected recovery from last year’s Hollywood strikes in Q4 will lead to a greater full-year loss than anticipated.

But the Sheffield firm said order notifications from its largest customer indicated its pipeline for the next two quarters will see a strong recovery of revenues and a return to profitability consistent with its investment strategy and market expectations for full-year 2025.

Production companies have resumed projects now expected to complete in January, accelerating into February and beyond.

As of the end of December the firm had net cash reserves of $8.9m (£7m) and expected to maintain a positive balance, with unused debt facilities, at year-end in March, and an improving cash balances in the coming financial year.

“The board expects further clarity on the timing of projects and therefore revenue for the rest of the year in the coming weeks and will update the market further as necessary in due course,” the firm said in a statement to the London Stock Exchange.