Sheffield’s ZOO Digital Group has swung back into the black in its latest half-year results.
The AIM-listed company, a tech-enabled localisation and digital media services partner to the global media and entertainment industry, reported revenue of $23.6m against $22.4m a year earlier for the six months ended 30th September 2026.
It reported an operating profit of $1.5m against a loss of $1.2m in the same period last year, while profit before tax was $1.3m, compared with a loss of $1.4m in H1 FY26.
Adjusted EBITDA was $3.6m, up from $2m. Gross margin was 43%, compared with 45% in H1 FY26, which ZOO attributed to a leaner cost structure and more higher-margin localisation revenue offsetting the fall in media services.
Localisation revenue rose 46% to $16.7m, while media services fell 37% to $6.9m.
ZOO said the higher localisation volumes were driven predominantly by projects for older catalogue content licensed into new territories.
The company said new business tender activity over the period was at its highest level since before the headline-making Hollywood strikes in 2023.
Its largest customer accounted for 26% of revenue, down from 55% in H1 FY26, and total sales excluding that customer rose 72%. ZOO said it continues to work with all major studios.
ZOO said its 7-Day Dub platform reduces dubbing to seven days from four-to-six weeks.
Cash stood at $3.4m, against $3.3m a year earlier, which ZOO said reflected disciplined cash management, a partial drawdown on invoice financing facilities and a reduction of creditor balances.
Stuart Green (pictured), CEO of ZOO, said: “ZOO has returned to growth with improved profitability and cash generation.”
Green also said: “We have rightsized the business, developed our offering, added new customer engagements and expanded several key accounts.”
On outlook, ZOO said current trading is positive and continuing the trend seen in H1.
The board said it is confident of delivering a return to revenue growth and profit progression for FY27 in line with market expectations.
It cautioned that H1 benefited from certain one-off catalogue projects that it does not assume will repeat in H2, and that the company continues to have limited revenue visibility.
BusinessCloud reported in April that the Sheffield company had slashed millions more off its cost base while last year freelancers who had worked with the company told us that they had not been paid, with ZOO not reponding to requests for comment.
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