Media localisation specialist ZOO Digital has renewed its currently undrawn, 12-month, $3 million debt facility with HSBC after reporting a higher than expected $5.3 million year-end cash total as of March 31, 2024 – significantly better than indicated previously following stronger collections than anticipated in the month of March.
Although the debt facility remains fully undrawn, it provides the company with enhanced financial flexibility for working capital purposes in an improving market environment.
Customer demand has continued to recover, with March 2024 invoicing the highest month since April 2023 following acceleration of the company’s pipeline. Work has continued to expand throughout March and April 2024 and visibility extends to September 2024. Revenues for FY25 Q1 are expected to be 36% up on FY24 Q4 which, together with recently implemented cost savings, is expected to result in EBITDA at break-even in Q1.
The company has now received dubbing and subtitling orders from the major film and TV distributor for which it was recently appointed as a primary vendor as referenced in the announcement of 26 March 2024. https://www.prolificnorth.co.uk/news/zoo-digital-anticipates-40m-revenue-and-european-expansion-with-hollywood-strikes-bounceback-underway/
ZOO’s strategy remains focused on developing and deploying technology to provide leading and differentiated end-to-end services to its customers. This includes the use of artificial intelligence to augment and complement processes where applicable. The strategy is achieved through a capital-efficient approach involving production hubs in key locations to provide a 24/7 service offering, which the board believes will deliver profitable revenue growth.
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.
The Company expects to announce full year results for the period to March 2024 in early August 2024.
