SOFTWARE company Zoo Digital, which provides subtitling software for Hollywood blockbusters, secured a large increase in revenue and client numbers over the last financial year.
In the year ended March 31 2017, the Sheffield-based company’s revenue increased by 42 per cent to $16.5 million. The group returned to profit at the pre-tax level of $0.5 million, from a loss of $1.5 million in the previous year.
Zoo said that demand for its services is growing rapidly, driven by the increase in digital entertainment content, the expansion of distribution channels, and innovation in the sector by vendors such as Amazon.
The statement added: “The board is delighted with the support provided by our stakeholders in May 2017 which has
enabled the group to reduce significantly its debt and increase its cash resources, thereby equipping us to capitalise on this exciting growth opportunity.”
Stuart Green, the chief executive of ZOO Digital, said: “Zoo made considerable progress, with a strongly improved financial performance driven by the strength of our differentiated services enabled by our innovative cloud technology.
“The improvement experienced through the second half of the year has carried on into the new financial year and the current pipeline of work is considerably stronger than at the corresponding prior period.
“The group has a more diverse client base and is becoming increasingly recognised as an innovative provider of vital solutions for an industry in which distribution channels and needs have been fundamentally transformed.
“With continuing momentum for the group’s existing tools and a number of exciting new solutions to clients’ localisation and security needs, the board looks to the current year and beyond with confidence.”
An analysts note from Finncap said Zoo’s results are in line with April’s year-end update, and confirm both record levels of revenue and cash flow generation.
The note added: “With a recapitalised balance sheet, strengthened sales team and industry tailwinds, we believe that Zoo can build on this excellent progress in FY18 (full year 2018).”