Zoo sees solid growth ahead

The Sheffield-based group, which designs software to speed up and cut the cost of DVD and computer game production, said the group is seeking new markets for its software tools.

Chairman Roger Jeynes told shareholders at the AGM: “Whilst the mainstay of our business remains working with the major Hollywood studios, we have managed to diversify our product offering to be relevant to a much greater audience.

“The continuing upheaval in the filmed entertainment industry has affected the work flow from our major customer, however, the subsequent recovery in this work has been encouraging.”

Zoo believes the rapidly growing e-Book market represents an “exciting opportunity”. The market for electronic books or e-books is developing at a stellar pace.

“Whilst it is still clearly early in the current financial year, the board believes that we are on track to meet market expectations,” said Mr Jeynes.

Zoo has reduced its reliance on the film industry. The home entertainment market has been through a turbulent period over the past year, with upheaval and cost-cutting measures taking place at many of the major Hollywood studios.

This has led to reduced orders, particularly from its major customer, although Zoo said that most of the shortfall in orders has been recovered.

Zoo said that the pressure the studios are under to maximise sales and cut costs provides a significant opportunity for the group.

One of the most important ways for a studio to maximise sales of a new release, especially blockbuster titles, is to distribute the product into as many territories as possible simultaneously.

By doing so, the loss of sales due to counterfeit products and illegal copying is dramatically reduced and the quality is maintained.