Media localisation specialist reports best month since Hollywood strikes

Media localisation specialist ZOO Digital said demand has continued to recover since last year’s Hollywood strikes, with March seeing its highest invoices since April 2023.

In a trading update, the Sheffield firm said work continued to expand, and it expected its revenues for the first quarter of 2025 to be 36% higher than the same period this year. It expected to reach EBITDA break-even in Q1 2025.

It has extended its $3m (£2.3m)  debt facility with HSBC for a further 12 months, but said the funds remain fully undrawn. It had $5.3m (£4.2m) cash at year-end on 31 March.

ZOO said its strategy remains focused on developing and deploying innovative technology to provide leading and differentiated end-to-end services to its customers, including use of AI to augment and complement processes where applicable.

With market commentators forecasting a return to 2022 levels of entertainment output in 2025, the Board continues to see opportunities to rebuild revenues following the significant industry disruptions of FY24 and is confident of at least meeting FY24 market expectations of revenue of $39.7, (£29.1m), EBITDA adjusted for share based payments loss of $14m (£8m) and net cash of $3.7m (£3m).