Hollywood strikes and strategic reviews caused significant disruption during 2023, says Zoo Digital

The statement added: “Following resolution in November, production companies have resumed projects with the expectation that the first of these would complete in January, accelerating into February and beyond.

“ZOO has now been notified by its largest customer of orders giving a pipeline and confidence of work for the next two quarters which is expected to deliver a strong recovery of revenues, and indicates demand for services and languages that are aligned with ZOO’s investment strategy.

"However, it is now clear that the completion of entertainment products is taking longer than expected. This will result in Q4 (fourth quarter) revenue being significantly lower than anticipated leading to a greater loss than previously expected for the full year. The pipeline is consistent with current market expectations for FY25 and a return to profitability.”

On December 31 2023, the group had net cash of $8.9m and it expects to maintain a positive balance with unused debt facilities available at the March year-end and an improving cash balance in the first half of 2025, due to the re-starting of orders.

The statement added: “The Board expects further clarity on the timing of projects and therefore revenue for the rest of the year in the coming weeks and will update the market further as necessary in due course.”