Zoo Digital sees improved cashflow

ZOO Digital, the AIM-listed DVD technology group, will tell shareholders later today its financial performance has improved and it is “optimistic” for the future.

The Sheffield-based group, which has been EBITDA (earnings before interest, taxation depreciation and amortisation) profitable for the period from April to August, said its positive trading performance had continued throughout September.

Christopher Honeyborne, Zoo’s chairman, will tell shareholders at the group’s  AGM statement: “We expect to show a positive EBITDA result for the first half of the financial year. This improvement in performance has significantly improved the cashflow of the group.”

The group said it was continuing to work closely with major Hollywood studios around the introduction of new technology – such as Blu-Ray – presented “exciting opportunities” for the future.

“We are pleased that we are able to report a much improved financial performance and are optimistic for the future.” Mr Honeyborne added.

Shareholders are also expected to approve plans to raise £512,000 by placing just over 3.4m new shares at 15p per share.

The placing, which Zoo said in September would generate further capital and allow the company to develop “without undue constraint”, is being taken up by the company’s chief executive Stuart Green, Herald Investment Fund and South Yorkshire Investment Fund.