Having raised funds and restructured loans in order to give itself the scope to adjust following the close of a tough year (see Zoo to raise £1.7m following FY slide), UK-based media production company Zoo Digital says it now has “a sound balance sheet and a solid platform for growth.”
Disruption in the US film industry, which was a major cause of its problems has not subsided but has eased somewhat. Meanwhile, the funds mean it is able to develop its software portfolio to address growth markets such as ebooks and electronic sell through, as well as further its relationship with packaging company Multi Packing Solutions. Zoo Digital’s recent experience underlines the benefits of diversification into adjacent markets. The board believes the company is on track to meet market expectations (revenue of around £8.7m, similar to fiscal 2011). This suggests the diversification activities have stopped the revenue decline but still need to be accelerated.