TIDMZOO
RNS Number : 8636R
Zoo Digital Group PLC
10 November 2021
10 November 2021
ZOO DIGITAL GROUP PLC
("ZOO" the "Group" or the "Company")
INTERIM RESULTS FOR THE SIX MONTHSED 30 SEPTEMBER 2021
Structural tailwinds and proprietary end-to-end services drive
strong sales growth
ZOO Digital Group plc (LON: ZOO), a world-leading provider of
cloud-based localisation and digital media services to the global
entertainment industry, today announces its unaudited financial
results for the six months ended 30 September 2021 ("H1 FY22").
HIGHLIGHTS
Key Financials
-- Revenues increased by 64% to $26.9 million (H1 FY21: $16.4
million) driven by strong growth in the period for subtitling and
media services
-- Gross profit increased by 68% to $8.6 million (H1 FY21: $5.1 million)
-- Adjusted EBITDA(1) up 82% to $2.4 million (H1 FY21: $1.3
million) reflecting the strong revenue growth and operational
gearing
-- Operating profit of $0.4 million (H1 FY21: loss of $0.1 million)
-- Cash balance of $8.2 million at period end (H1 FY21: $2.1
million) benefitting from the $10.3 million placing in April 2021
to fund accelerated growth
-- Conversion of the 7.5% unsecured convertible loan stock into
5,273,959 new shares, removing the main borrowings of the Group and
the associated interest payments
Operational Highlights
-- Extended ZOOstudio platform further and secured a new customer deployment
-- Media services grew by 142% due to a high volume of work in
preparing catalogue titles for release on streaming platforms
-- Localisation grew 30% as new productions resumed in Q2
-- Freelancer network grew to 9,752 (H1 FY21: 8,272, +18%)
-- Established mastering team, launched new service and secured first customer
-- Launched global growth initiative with investment to establish ZOO Turkey
-- Signed lease to rent new property in Sheffield to support long-term innovation and growth
Outlook
-- Strong order book across all service lines with good
visibility for H2 and a pipeline of work from established,
satisfied customers
-- New mastering initiative and international expansion provide two additional revenue streams
-- The Board expects that the developments in its services will
yield greater diversity in revenue categories in the period
ahead
-- The Board will continue to invest in expanding capacity to
support an increase in market share in H2 and into FY23, which is
expected to generate increased profitability in future periods
(1) adjusted for share-based payments
Stuart Green, CEO of ZOO Digital, commented:
"Structural tailwinds and our end-to-end services powered by our
proprietary systems have fuelled very strong revenue growth while
back catalogue work surged as streaming globalises. More recently
new production work returned and reached pre-pandemic levels in
August.
"We are building on our international capability through
partnering and investing in regions of the world where the
strongest growth is anticipated. The launch of ZOO Turkey has
already strengthened our MENA operations and discussions are
underway in further territories to ensure that we are best placed
to enhance our offer and grow market share.
"This is our time. We are but one of a handful of players that
can meet client needs through our market leading approach. We are
confident of strong growth for the foreseeable future. We are
currently building increased capacity to accelerate sales and
making great strides toward our medium term target of $100
million."
For further enquiries, please contact:
+44 (0) 114 241
ZOO Digital Group plc 3700
Stuart Green - Chief Executive Officer
Phillip Blundell - Chief Finance Officer
Stifel Nicolaus Europe Limited +44 (0) 20 7710
Fred Walsh / Tom Marsh 7600
Instinctif Partners +44 (0) 20 7457
Matthew Smallwood / Joe Quinlan 2020
The Company further wishes to draw attention to the posting on
its website (www.zoodigital.com) of a presentation to shareholders
regarding its interim results, and of an investor presentation
(www.zoodigital.com/interims2022) that will be live streamed on
Wednesday 10(th) November at 5:00pm GMT.
About ZOO Digital Group plc:
ZOO Digital supports major Hollywood studios and streaming
services to globalise their content and reach audiences everywhere,
by providing world-leading, technology-enabled localisation and
media services.
Founded in 2001, ZOO Digital operates from hubs in Los Angeles,
London and Dubai, with a development and production centre in
Sheffield, UK. The company is targeting $100m sales in the medium
term.
The Group provides media services through its platforms that
include: ZOOsubs, ZOOdubs, ZOOstudio. Its full-service proposition
delivers the end-to-end services required to prepare both original
and catalogue content for digital distribution; these services
include dubbing, subtitling & captioning, metadata creation
& localisation, artwork localisation and media processing.
Alongside this offering, ZOO also provides its customers with
management platforms and strategic solutions to support their own
internal globalisation operations.
ZOO is a go-to service partner for media businesses looking to
globalise their content across different territories, languages and
distribution platforms. Using its innovative technology-enabled
approach, ZOO helps its customers to reduce time to market, lower
costs and deliver high quality products to their global audiences.
The business has frameworks in place with all major Hollywood
studios and streaming services. Its customers include Disney,
NBCUniversal, HBO and ViacomCBS.
ZOO's competitive advantage arises from three interlinking
factors - the leading role it has played in the digital
transformation of its sector; the world class proprietary platforms
that it develops to enable this transformation; and the global
supply chain of thousands of freelancers, working collaboratively
in ZOO's platforms, which delivers services that scale easily to
meet demand. These factors combine to make ZOO uniquely geared to
capitalise on new market opportunities in a fast-paced and
constantly evolving industry.
CHAIRMAN AND CHIEF EXECUTIVE'S STATEMENT
Overview
During the first half of the Company's FY22, production
companies across the global entertainment industry resumed work on
creating new TV series and feature films that will drive growth in
H2 and beyond. In August, it was reported that new projects were
back to pre-pandemic levels and that TV production continues to
surge. This, combined with the on-going migration of catalogue
content to streaming platforms and the launch of those platforms in
new territories has driven very strong sales growth in H1 of 64%
over the prior year period, a trend that we expect to continue, and
excellent results overall.
The Over-the-Top (OTT: film and television content platforms
provided via high-speed internet connections instead of cable or
satellite provider-based platforms) market was worth around $122
billion in 2019 and is forecast to reach $1 trillion by 2027
(source: Allied Market Research). By 2021 82% of US consumers had
at least one streaming subscription, with four subscriptions being
the average (source: Deloitte). Indications are that the upsurge in
subscriptions over the past 18 months will be sustained, with 86%
of subscribers planning on maintaining or adding to their
subscriptions (source: Brightback).
Whilst almost all households in the US already have at least one
OTT subscription, it is from several other regions that we see
opportunities for rapid growth.
Of the hundreds of distinct OTT providers, an increasing number
have set out their intentions to distribute services on a global or
multinational basis. Platforms that have access to premium content
with global appeal are looking at international markets to support
their accelerated growth. This, in turn, is a driver of demand for
the services provided by ZOO.
Key growth regions are: Eastern Europe from 2022 following
launches from Disney+, Sky Showtime and HBO Max; Asia Pacific is
anticipated to nearly double by 2026; India to triple over the same
period; and the MENA region anticiped to grow by 74% (source:
Digital TV Research). For OTT providers, maximising revenue
opportunities will require more content to be localised into a
greater number of the languages spoken in these regions than has
ever been the case previously.
The recent success of the Korean Netflix Original series Squid
Game has also highlighted the significant trend for global
distribution of non-English TV content. Since its release it has
been the most popular Netflix show in over 90 countries. Netflix
has been investing in non-English programming since 2015 and has
spent more than $1 billion on Korean content alone.
Once post-production has been completed for a new title,
localisation and media services must be performed before the title
can go live on a streaming platform. In the past the procurement of
this range of services was frequently divided amongst several
different vendors, each typically specialising in a subset of the
services. Due to the pace and volume with which content is being
made available for OTT streaming, buyers are increasingly turning
to End-to-End (E2E) vendors, of which ZOO is one of a very few
globally capable in fulfilling all service lines. ZOO has benefited
in H1 from this trend and the Board expects this to continue
throughout H2 and beyond.
The centralisation of procurement of these services by the large
US buyers is beneficial to ZOO since it enlarges the addressable
market for our services, as purchasing decisions that were
previously devolved geographically are increasingly made through
the groups with which ZOO has long-established relationships and
strong customer satisfaction.
With a proposition that has been purpose designed to address the
current and emerging needs of large media organisations, ZOO is
well placed to ride the secular growth of an industry that is
expanding in multiple dimensions simultaneously - in content, in
OTT service offerings and in language requirements. The strong
growth delivered in H1 is the result not only of an expanding
market, but in ZOO's ability to adapt to change and increase its
market share from traditional vendors in the sector.
Given the significant commercial opportunities ahead, the Board
has committed investment in several areas to continue to capture
and expand market share . Cashflow generated from operations,
together with the proceeds of the share placing that completed on
31 March 2021, are being put to work to drive accelerated
profitable growth that will deliver significant return.
The Company has announced a global growth initiative to support
the needs of major content creators and streaming services by
extending its international footprint through investments in the
key content sourcing and distribution locations of Turkey, Korea,
Thailand, India, Japan, and Malaysia. The availability of resources
in these locations will enable ZOO to accelerate the growth of its
talent pool and thereby to align closely with the current and
future objectives of its customers.
Continuing its leadership of the digital transformation of the
sector, the Company has been expanding the resources in its R&D
team, adding software engineers, quality assurance engineers,
project and product managers, and others to provide greater
capacity and accelerate the pace at which new innovations can be
delivered to customers and partners. In addition, a further
collaborative R&D project has begun recently in which AI
research in speech technologies will be developed to provide
competitive advantages in the future.
ZOOstudio, the Company's secure platform that provides a
centralised system to manage localisation and media service
operations, has been the subject of significant further enhancement
during the period, enabling ZOO to embed this strategic capability
more broadly and deeply within customer operations. The Company is
currently in the process of configuring and integrating a ZOOstudio
implementation for a further multinational media organisation.
The area of greatest expansion in headcount terms has been
across our various production teams that deliver premium services
to our customers. Here we have added more project managers,
coordinators, and other roles to enlarge the Company's throughput
of projects where demand is growing in all areas. This includes
established teams for subtitling, dubbing, audio description,
artwork, metadata, and a range of media services, and now also
extends to the area of content mastering following the establishing
of a new division post period.
Investments in capital equipment have been made, not only to
provide the resources necessary to fulfil the new mastering
service, but also to support a higher throughput of digital media
processing across all service lines at facilities in Los Angeles,
London, Sheffield, and Dubai.
We are grateful to the holders of the Company's convertible
unsecured loan stock who agreed to convert their loans into
ordinary shares in the capital of ZOO in September, in advance of
the redemption date of 31 October 2021. The benefit of this is that
the Statement of Financial Position as of 30 September 2021 is free
of significant debt, simplifying the capital structure of the
Company. The Board would like to extend its thanks to the holders
of the loan notes, most of whom have provided continuous support to
the Company since the origins of the convertible instruments in
2006.
The board remains committed to building a responsible,
future-focused business. During the period, ZOO commissioned an ESG
Health Check with a leading provider and is in the process of
implementing new initiatives particularly in the areas of
education, diversity and inclusion, technological innovation and
the environment. The Company is launching its ZOOgooders programme
which permits all staff to dedicate a proportion of their working
time to the support of charities and other good causes.
Operations
ZOO's competitive advantage and differentiation stems from the
breadth and depth of its E2E proposition delivered through the
Company's proprietary technology. Accordingly, the Board has
continued to strengthen its E2E offer through the launch of two
recent important initiatives.
Firstly, the launch of mastering services creates an additional
revenue stream and provides an important adjacent capability that
has been requested by existing customers under the scope of E2E
engagements. The procurement of capital infrastructure to support
this service and the recruitment and training of a new team
reflects a significant investment in H1 with revenues to follow in
H2 now assured through a first engagement with a leading media
organisation. This provides good visibility throughout the second
half, not only for the incremental mastering assignments but also
for the wider scope of work that is bundled with such E2E projects
in the areas of localisation and media services.
Secondly, the Company announced post period its global growth
strategy and the first of a series of investments in regional
partners. To align with the current and future objectives of ZOO's
customers in fast-growing territories, the Company is in various
levels of discussions regarding investments to expand its
geographic footprint in key content sourcing and distribution
locations, namely Turkey, Korea, Thailand, India, Japan and
Malaysia. The geographic expansion will further strengthen the
Company's offering with simplified access to new territories,
helping clients to overcome the challenges of localising and
fulfilling large volumes of original and catalogue content, as well
as supporting the increasing need to prepare locally acquired TV
shows and movies for streaming services around the world. The new
hubs are also expected to support the business development team by
providing wider international coverage and access to new
markets.
A first investment in long-time affiliated partner and Istanbul
based ARES Media has led to establishing ZOO Turkey, extending the
Company's reach across the MENA region. With its high production
values, Turkish content continues to be strategically important to
ZOO's customers which have been acquiring this content for
distribution on global streaming services. Several further
investments, each situated in a location that is of strategic
significance to the industry's growth ambitions, are in the
pipeline and will be announced in due course.
People
ZOO's strategy of creating innovative cloud software platforms
with their attendant benefits of efficiency, scalability and
security is perfectly adapted to a post-pandemic world in which
remote and hybrid working have become the new norm. ZOO's
asset-light approach affords the Company the flexibility and
agility needed to maintain productivity over the long term,
delivering clear differentiation in the market for a proposition
that is increasingly valued and sought after.
We have continued to expand our servicing resources to
accommodate an ever-greater volume of business. This expansion
maintains our trajectory to reach sales of $100m in the medium
term.
The strength of the Company lies in its people, their talents
and commitment, which includes our colleagues, our in-territory
advocates who have been instrumental in connecting us with
resources and customers in their markets, our expanding pool of
gifted freelancers who now number close to 10,000, and our
partners, several of which we expect to become part of ZOO Digital
Group in the coming months. Delivering consistent growth at our
current pace while maintaining outstanding performance targets with
all our clients is no mean feat. We extend our heartfelt thanks to
all members of the ZOO family for their support, dedication, and
resilience at this exciting time in the development of the
Company.
Outlook
The industry's gross cash amount spent producing and licensing
new entertainment content (excluding sports) soared by 16.4% in
2020 to an all-time high of $220 billion, with 2021 spend expected
to rise to more than $250 billion (source: Purely Streamonomics).
The tailwinds caused by this explosion in new content, coupled with
the accelerated migration of catalogue content to streaming
platforms and the associated new territory launches, are providing
an environment in which the Board expects to deliver sustained,
profitable growth over the long term.
The Company has a strong order book across all service lines
with good visibility for H2 and a pipeline of work from
established, satisfied customers extending into the future. The new
mastering service and the customer orders already received present
an exciting opportunity to secure larger and longer-term
assignments. The Board expects that the developments in the
services offered by ZOO will yield greater diversity in revenue
categories in the period ahead.
The Board is committed to sustainable growth of the business
which requires on-going expansion of resources to support enlarged
capacity. This is being achieved through increases in headcount,
expansion of the freelance talent pool and investment in partners.
These initiatives will support an increase in market share in H2
and into FY23 and enable greater levels of profitability in the
periods ahead when the investments can be fully leveraged,
propelling the Company towards its medium-term target of $100
million in sales.
The Board is confident in delivering continuing profitable
growth and in achieving its vision to be our customers' most
trusted partner to help them deliver engaging, entertaining, and
immersive content experiences to their global audiences.
FINANCIAL REVIEW
Revenues of $26.9 million were 64% ahead of the same period last
year (H1 FY21: $16.4 million). This is as a result of a 142%
increase in Media Services, driven by ZOO's support for two major
OTT geographic launches in the period. Localisation revenues, which
include subtitling and dubbing services, increased by 30% as our
customers resumed some new productions post the worst of the global
pandemic.
Gross profit increased from $5.1 million to $8.6 million in the
half year from 1 April 2021, reflecting the revenue growth and
direct staff costs falling by two percent. In real terms direct
staff grew by 53% as we continue to build the business to support
higher volumes of orders.
Operating expenses increased to $8.3 million (H1 FY21: $5.3
million) which in percentage terms is an increase of 57%, in line
with our strategy outlined at the time of the placing to invest in
our geographic presence and in Research and Development. We have
recruited eight territory managers to source both new talent and
new customers and we have increased our R&D spend by 42% in the
half year period compared to the same period last year.
Adjusted EBITDA increased by 82% to $2.4 million compared to
$1.3 million last year as a direct result of the revenue increase
offsetting the investment in people and R&D. This is reflected
in the operating profit improvement of $0.5 million, despite
increases in the depreciation charge due to higher capital
expenditure and property costs.
The statutory loss for the period was $1.7 million, which is
$0.9 million more than last year (H1 FY21: loss of $0.7 million),
primarily due to the final accounting charge related to the
conversion of the 7.5% unsecured convertible loan stock which was
completed in September 2021, being a non-cash fair value movement
on the loan stock of $1.0 million.
The cash balance on 30 September 2021 was $8.2 million (H1 FY21:
$2.1 million) reflecting the net cash flow from financing of $8.2
million, primarily due to the April fundraise. Net cash flow from
operating activities was negatively impacted by the delay in the
payment of debtors resulting in an out flow of $0.9 million. Net
cash flow from investing activities was a negative $2.1 million
following the investment in both R&D and capital equipment to
support the growth of the business.
The Group has short-term lease commitments on capital equipment
of $1.0 million (H1 FY21: $1.4 million), a reduction of $0.4
million as no new lease commitments were entered into during the
period. The balance in short-term borrowings relates to rent due on
leasehold properties. The higher commitment compared to last year
is due to a new office lease in Sheffield which is for a 10 year
period covering 19,000 square feet. This also explains the increase
in the property asset and the corresponding increase in long-term
liabilities as required by IFRS 16 of $2.0 million.
The conversion into equity of the 7.5% unsecured convertible
loan stock on 22 September 2021 reduced company borrowings by $9.5
million. The transaction involved creating 5,273,959 new shares at
a price of 48p to satisfy the repayment of the loan stock.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(UNAUDITED)
for the six months ended 30 September 2021
Unaudited Unaudited Audited
6 months 6 months
to to Year ended
30 Sep 2021 30 Sep 2020 31 Mar 2021
$000 $000 $000
===================================== ============= ============= =============
Revenue 26,927 16,393 39,525
Cost of sales (18,357) (11,277) (25,882)
------------------------------------- ------------- ------------- -------------
Gross Profit 8,570 5,116 13,643
Other operating income 135 110 188
Operating expenses (8,332) (5,306) (12,869)
------------------------------------- ------------- ------------- -------------
Operating profit/(loss) 373 (80) 962
------------------------------------- ------------- ------------- -------------
Analysed as
EBITDA before share-based payments 2,355 1,291 4,534
Share based payments (124) (57) (649)
Depreciation (1,097) (705) (1,702)
Amortisation (761) (609) (1,221)
------------------------------------- ------------- ------------- -------------
373 (80) 962
------------------------------------- ------------- ------------- -------------
Exchange loss on borrowings (5) (284) (359)
Costs re raise of capital (596) - -
Fair value movement on embedded
derivative (971) - (3,474)
Other finance cost (317) (346) (700)
------------------------------------- ------------- ------------- -------------
Total finance cost (1,889) (630) (4,533)
------------------------------------- ------------- ------------- -------------
Loss before taxation (1,516) (710) (3,571)
Tax on loss (152) (15) 408
------------------------------------- ------------- ------------- -------------
Loss and total comprehensive
income for the period attributable
to equity holders of the parent (1,668) (725) (3,163)
------------------------------------- ------------- ------------- -------------
Profit per ordinary share
------------------------------------- ------------- ------------- -------------
(2.02) (0.97) (4.24)
- basic cents cents cents
------------------------------------- ------------- ------------- -------------
(2.02) (0.97) (4.24)
- diluted cents cents cents
------------------------------------- ------------- ------------- -------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(UNAUDITED)
As at 30 September 2021
Unaudited Unaudited Audited
as at 30 as at 30 as at 31
Sep 2021 Sep 2020 Mar 2021
$000 $000 $000
----------------------------------- ---------------------- ---------------------- ------------------------
ASSETS
Non-current assets
Property, plant and equipment 6,935 4,650 4,362
Intangible assets 6,876 6,693 6,812
Deferred tax assets 486 486 486
--------------------------------------------------- ---------------------- ---------------------- ------------------------
14,297 11,829 11,660
--------------------------------------------------- ---------------------- ---------------------- ------------------------
Current assets
Trade and other receivables 12,440 7,313 8,063
Contract assets 2,194 1,867 2,178
Cash and cash equivalents 8,214 2,073 2,949
--------------------------------------------------- ---------------------- ---------------------- ------------------------
22,848 11,253 13,190
--------------------------------------------------- ---------------------- ---------------------- ------------------------
Total assets 37,145 23,082 24,850
--------------------------------------------------- ---------------------- ---------------------- ------------------------
LIABILITIES
Current liabilities
Trade and other payables (11,216) (9,311) (9,955)
Contract liabilities (558) (736) (813)
Borrowings (1,771) (1,598) (5,032)
Separable embedded derivative - - (4,452)
--------------------------------------------------- ---------------------- ---------------------- ------------------------
(13,545) (11,645) (20,252)
--------------------------------------------------- ---------------------- ---------------------- ------------------------
Non-current liabilities
Borrowings (3,093) (5,810) (1,759)
Separable embedded derivative - (978) -
----------------------------------- ---------------------- ---------------------- ------------------------
Total liabilities (16,638) (18,433) (22,011)
--------------------------------------------------- ---------------------- ---------------------- ------------------------
Net assets 20,507 4,649 2,839
--------------------------------------------------- ---------------------- ---------------------- ------------------------
EQUITY
Equity attributable to equity
holders of the parent
Called up share capital 1,166 1,011 1,010
Share premium reserve 51,191 41,022 41,003
Other reserves 12,320 12,320 12,320
Share option reserve 2,209 1,432 2,085
Capital redemption reserve 6,753 6,753 6,753
Convertible loan note reserve 8,914 42 42
Foreign exchange translation
reserve (992) (992) (997)
Accumulated losses (60,999) (56,893) (59,331)
--------------------------------------------------- ---------------------- ---------------------- ------------------------
20,562 4,695 2,885
--------------------------------------------------- ---------------------- ---------------------- ------------------------
Interest in own shares (55) (46) (46)
--------------------------------------------------- ----------------------
Attributable to equity holders 20,507 4,649 2,839
--------------------------------------------------- ---------------------- ---------------------- ------------------------
CONSOLIDATED STATEMENT OF CHANGES
IN EQUITY
(UNAUDITED)
for the six months ended 30 September
2021
Foreign
Share exchange Convertible Share Capital Interest
Ordinary premium translation loan note option redemption Other Accumu-lated in own
shares reserve reserve reserve reserve reserve reserves losses shares Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
---------------- --------- -------- ------------- ------------ -------- ----------- --------- ------------- --------- --------
Balance at
1 April 2020 1,010 41,003 (992) 42 1,375 6,753 12,320 (56,168) (46) 5,297
---------------- --------- -------- ------------- ------------ -------- ----------- --------- ------------- --------- --------
Issue of
share capital 1 19 - - - - - - - 20
Share-based
payments - - - - 57 - - - - 57
================ ========= ======== ============= ============ ======== =========== ========= ============= ========= ========
Transactions
with owners 1 19 - - 57 - - - - 77
================ ========= ======== ============= ============ ======== =========== ========= ============= ========= ========
Loss for
the period - - - - - - - (725) - (725)
================ ========= ======== ============= ============ ======== =========== ========= ============= ========= ========
Total
comprehensive
income for
the period - - - - - - - (725) - (725)
================ ========= ======== ============= ============ ======== =========== ========= ============= ========= ========
Balance at
30 September
2020 1,011 41,022 (992) 42 1,432 6,753 12,320 (56,893) (46) 4,649
Share options
exercised - - - - 61 - - - - 61
Share-based
payments - - - - 592 - - - - 592
Foreign
exchange
translation - - (5) - - - - - - (5)
Issue of
share capital (1) (19) - - - - - - - (20)
================ ========= ======== ============= ============ ======== =========== ========= ============= ========= ========
Transactions
with owners (1) (19) (5) - 653 - - - - 628
================ ========= ======== ============= ============ ======== =========== ========= ============= ========= ========
Loss for
the period - - - - - - - (2,438) - (2,438)
================ ========= ======== ============= ============ ======== =========== ========= ============= ========= ========
Total
comprehensive
income for
the period - - - - - - - (2,438) - (2,438)
================ ========= ======== ============= ============ ======== =========== ========= ============= ========= ========
Balance at
31 March
2021 1,010 41,003 (997) 42 2,085 6,753 12,320 (59,331) (46) 2,839
Share based
payments - - - - 124 - - - - 124
Foreign
exchange
translation - - 5 - - - - - (9) (4)
Issue of
share capital 156 10,188 - 8,872 - - - - - 19,216
================ ========= ======== ============= ============ ======== =========== ========= ============= ========= ========
Transactions
with owners 156 10,188 5 8,872 124 - - - (9) 19,336
================ ========= ======== ============= ============ ======== =========== ========= ============= ========= ========
Loss for
the period - - - - - - - (1,668) - (1,668)
================ ========= ======== ============= ============ ======== =========== ========= ============= ========= ========
Total
comprehensive
income for
the period - - - - - - - (1,668) - (1,668)
================ ========= ======== ============= ============ ======== =========== ========= ============= ========= ========
Balance at
30 September
2021 1,166 51,191 (992) 8,914 2,209 6,753 12,320 (60,999) (55) 20,507
================ ========= ======== ============= ============ ======== =========== ========= ============= ========= ========
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
for the six months ended 30 September 2021
31 Mar
30 Sep 2021 30 Sep 2020 2021
Unaudited Unaudited Audited
6 months 6 months
to to Year ended
30 Sep 31 Mar
2021 30 Sep 2020 2021
$000 $000 $000
=========================================== ============ ============= ============
Cash flows from operating activities
Operating profit/(loss) for the
period 373 (80) 962
Depreciation 1,097 705 1,715
Amortisation 761 609 1,221
Share based payments 124 57 649
Changes in working capital:
(Increases)/decreases in trade
and other receivables (4,377) 143 (918)
Increases/(decreases) in trade
and other payables 1,261 1,998 2,719
------------------------------------------- ------------ ------------- ------------
Cash flow from operations (761) 3,432 6,348
Tax (paid)/received (152) (15) 408
------------------------------------------- ------------
Net cash flow from operating activities (913) 3,417 6,756
------------------------------------------- ------------ ------------- ------------
Investing Activities
Purchase of intangible assets (17) (41) (67)
Capitalised development costs (808) (569) (1,274)
Purchase of property, plant and
equipment (1,285) (1,588) (2,290)
------------------------------------------- ------------
Net cash flow from investing activities (2,110) (2,198) (3,631)
------------------------------------------- ------------ ------------- ------------
Cash flows from financing activities
Repayment of borrowings (283) (540) (982)
Proceeds from borrowings - 1,042 1,043
Proceeds from fund raise 10,107 - -
Repayment of principal under lease
liabilities (503) (543) (1,102)
Finance cost (593) (343) (414)
Share options exercised - - 61
Share issue costs (596) 19 -
Issue of Share Capital 156 1 -
-------------------------------------------
Net cash flow from financing 8,288 (364) (1,394)
------------------------------------------- ------------ ------------- ------------
Net Increase in cash and cash equivalents 5,265 855 1,731
------------------------------------------- ------------ ------------- ------------
Cash and cash equivalents at the
beginning of the period 2,949 1,218 1,218
------------------------------------------- ------------ ------------- ------------
Cash and cash equivalents at the
end of the period 8,214 2,073 2,949
------------------------------------------- ------------ ------------- ------------
NOTES
General information
ZOO Digital Group plc ('the Company') and its subsidiaries
(together 'the Group') provide productivity tools and services for
digital content authoring, video post-production and localisation
for entertainment and packaging markets and continue with on-going
research and development in those areas. The Group has operations
in both the UK and US.
The Company is a public limited company which is listed on the
Alternative Investment Market and is incorporated and domiciled in
the UK. The address of the registered office is 7(th) Floor, City
Gate, 8 St Mary's Gate, Sheffield. The registered number of the
Company is 3858881.
This condensed consolidated financial information is presented
in US dollars, the currency of the primary economic environment in
which the Company operates.
The interim accounts were approved by the board of directors on
9 November 2021 .
This consolidated interim financial information has not been
audited.
Basis of preparation
The consolidated financial statements of ZOO Digital Group plc
and its subsidiary undertakings for the period ended 31 March 2022
will be prepared in accordance with international accounting
standards in conformity with the requirements of the Companies Act
2006.
This Interim Report has been prepared in accordance with UK AIM
listing rules which require it to be presented and prepared in a
form consistent with that which will be adopted in the annual
accounts having regard to the accounting standards applicable to
such accounts. It has not been prepared in accordance with IAS 34
"Interim Financial Reporting".
The policies applied are consistent with those set out in the
annual report for the year ended 31 March 2021, and have been
consistently applied, unless stated otherwise.
This condensed consolidated financial information is for the six
months ended 30 September 2021. It has been prepared with regard to
the requirements of IFRS. It does not constitute statutory accounts
as defined in S343 of the Companies Act 2006. It does not include
all of the information required for full annual financial
statements, and should be read in conjunction with the consolidated
financial statements of the Group for the year ended 31 March 2021
which contained an unqualified audit report and have been filed
with the Registrar of Companies. They did not contain statements
under s498 of the Companies Act 2006.
The Group has applied the same accounting policies and methods
of computation in its interim consolidated financial statements as
in its 2021 annual financial statements, except for those that
relate to new standards and interpretations effective for the first
time for periods beginning on (or after) 1 April 2021 and will be
adopted in the 2022 financial statements. There are no standards
impacting the Group that will be required to be adopted in the
annual financial statements for the year ended 31 March 2022.
Basis of Consolidation
The consolidated financial statements of ZOO Digital Group plc
include the results of the Company and its subsidiaries. Subsidiary
accounting policies are amended where necessary to ensure
consistency within the Group and intra group transactions are
eliminated on consolidation.
Segment reporting
Operating segments are reported in a manner consistent with the
internal reporting regularly reviewed by the group's chief
operating decision maker to make decisions about resource
allocation to the segments and to assess their performance.
Localisation Media services Software Licensing Total
FY22 FY21 FY22 FY21 FY22 FY21 FY22 FY21
H1 H1 H1 H1 H1 H1 H1 H1
$000 $000 $000 $000 $000 $000 $000 $000
====================== ======= ====== ========= ====== ========= ========== ======= =======
Revenue 12,906 9,940 13,122 5,416 899 1,037 26,927 16,393
Segment contribution 2,658 1,549 6,835 3,620 830 895 10,323 6,064
Unallocated cost of
sales (1753) (948)
=============================== ====== ========= ====== ========= ========== ======= =======
Gross profit 8,570 5,116
=============================== ====== ========= ====== ========= ========== ======= =======
Gross profit % 21% 16% 52% 67% 92% 86% 32% 31%
Functional and presentation currency
Items included in the financial statements of each of the
Group's entities are measured using the currency of the primary
economic environment in which the entity operates ('the functional
currency'). The consolidated financial statements are presented in
US Dollars which is the Company's functional and presentation
currency.
Transactions and balances
Transactions in foreign currencies are recorded at the
prevailing rate of exchange in the month of the transaction.
Foreign exchange gains or losses resulting from the settlement of
such transactions and from the translation of monetary assets and
liabilities denominated in foreign currencies at the year-end
exchange rates are recognised in the income statement.
Group companies
The results and financial positions of all Group entities that
use a functional currency different from the presentation currency
are translated into the presentation currency as follows:
-- assets and liabilities for each entity are translated at the
closing rate at the period end date;
-- income and expenses for each Statement of Comprehensive
Income item are translated at the prevailing monthly exchange rate
for the month in which the income or expense arose and all
resulting exchange rate differences are recognised in other
comprehensive income with the foreign exchange translation
reserve.
Earnings per share
Earnings per share is calculated based upon the profit or loss
on ordinary activities after tax for each period divided by the
weighted average number of shares in issue during the period.
Weighted average number
of shares for basic & diluted 31 Mar
profit per share 30 Sep 2021 30 Sep 2020 2021
===============================
No. of
No. of shares No. of shares shares
=============================== ============== =============== ==========
Basic 82,429,164 74,547,389 74,597,495
Diluted 90,787,293 81,244,707 82,955,624
Where the Group has recorded a loss, diluted earnings per share
is equal to basic earnings per share.
Further Copies
Copies of the Interim Report for the six months ended 30
September 2021 will be available, free of charge, for a period of
one month from the registered office of the Company at 7(th) Floor,
City Gate, 8 St Mary's Gate, Sheffield, S1 4LW or from the Group's
website: www.zoodigital.com .
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END
IR FSEFAUEFSELF
(END) Dow Jones Newswires
November 10, 2021 02:00 ET (07:00 GMT)
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