Diversification set to generate rewards for ZOO

ZOO Digital has said it is “cautiously optimistic” about its future prospects.

In a trading update for the year ended March 31, Sheffield-based ZOO said it expected to report revenues in the range of $10.3m to $10.4m, with adjusted EBITDA of approximately $700,000 and adjusted loss before tax of approximately $1.2m.

At the year end the company had a cash balance of $1m with its only indebtedness being a convertible loan note of $2.7m.

ZOO said it had implemented cost cutting measures during the course of the year to align its cost base with its current operations and revenue pipeline.

Those measures, including job losses, have been completed and its board said it was confident that the cost base was better matched to the Company’s expectations for the new financial year.

Dr Stuart Green, chief executive, said: “The continued turbulence experienced in the home entertainment market had an impact on ZOO’s traditional business. Whilst this was frustrating we believe that we have reacted quickly to align our cost base to reflect these conditions and that the further diversification of our product set should, in time, lessen the impact on any single revenue stream.

“Also, the scalability of ZOO’s new Cloud-based services means we are well placed to benefit from any growth in our markets. We remain cautiously optimistic as we enter the new financial year.”