Subtitles and dubbing services group Zoo Digital (ZOO:AIM) today confirmed prior guidance for year-end 31 March 2020 revenues to be around $30m and said cash collection was stronger than forecast, giving the shares a 2.7% boost to 77p.
RESUMPTION OF ORDERS
In its 23 March pre-close trading update, the company highlighted some softening of trade as its clients implemented business continuity plans in response to the lock-down. Trading in the first weeks of the 2021 financial year has seen an encouraging pick-up in demand for work in relation to back catalogues.
In particular the company has seen increasing demand for its cloud-based platform, Zoodubs, that enables voice over, lip-sync and audio description services. This allows dubbing projects to continue during periods of lock-down.
Chief executive Stuart Green commented, ‘The current environment has encouraged industry change and the investments made in prior periods to scale our business mean we are well placed to meet our customers' needs.’
QUICKER COLLECTIONS
Zoo Digital reaffirmed that March 2020 year-end earnings before interest, tax, depreciation and amortisation (EBITDA) would be at least $2.2m.
It was expecting to end the year with a $1m overdraft due to extra working capital requirements related to long-term contracts with global media companies, but cash collection has been faster than anticipated resulting in year-end cash of $0.7m.
