Hooray for Zoo as results are set to improve

Zoo Digital, which provides software to Hollywood studios, said its annual results are expected to be slightly ahead of expectations.

Hooray for Hollywood!
Hooray for Hollywood!

The Sheffield-based firm said it expects to make annual revenue of £5.7m and a loss of £180,000.

The company warned in its February trading update that revenue growth had been slower than anticipated despite a significant amount of new work coming through for its new cloud-based film subtitling system.

Sign up to our Business newsletter

Zoo said ZOOsubs continues to gain momentum through new client wins, as well as increased volumes from existing clients.

Chief executive Stuart Green said: “We remain very confident in the value proposition and prospects for our ZOOsubs offering and are pleased with the momentum achieved in the early phase of the roll-out.

“We are encouraged by the current ramp-up of revenues that provide better visibility and further diversification of the mix for future periods.

“We expect this trend to continue into the new financial year and view the future with cautious optimism.”

ZOOsubs is Zoo’s cloud-based subtitle production and management system.

The firm is in the process of diversifying its customer base and bringing new products and services to market.

Three of the six major Hollywood studios have now taken ZOOsubs products or services.

The company counts Disney, Universal and Warner Brothers among its big customers.

The group made adjusted earnings of £187,000 in the six months to September 30, compared with a loss of £187,000 in the second half of last year, but down on the £624,000 profit announced in the first half of 2012.