Zoo Digital interim revenues on the rise

Software services provider Zoo Digital said on Monday that interim revenues were expected to be at least $25.0m, a 51% year-on-year improvement.

Zoo Digital stated growth during the first half of the year was predominantly to its provision of services to support the migration of catalogue titles to streaming platforms and associated new territory launches.

The AIM-listed firm added that in recent weeks, some customers had placed orders relating to new titles following "the cautious resumption" of productions within the industry, with the group now anticipating that the associated pipeline of work will build "gradually" over the coming months.

Elsewhere, Zoo Digital said it had been in discussions with holders of its unsecured convertible redeemable loan stock instruments concerning early conversion into new ordinary shares of 1.0p each ahead of the instrument's redemption date of 31 October.

"Based on these discussions it is the board's expectation that a majority of the total value of the loan stock will be converted into ordinary shares prior to 30 September," said Zoo.

Assuming the full value of the loan stock is converted, the effect will be that the company's issued share capital will increase by 5.3m new ordinary shares and that current liabilities shown in the consolidated statement of financial position at the end of September will reduce by approximately $3.5m due to the conversion of the loan and a further $4.5m due to the elimination of the current liability shown as a separable embedded derivative linked to the loan.

As of 0850 BST, Zoo Digital shares were down 3.19% at 136.99p.