ZOO Digital Group Plc's (AIM:ZOO) shares rose 10% after the company reported a significant turnaround in its full-year results, setting the stage for a return to profitability and positive cash flow in the coming year.
The localisation and digital media services provider to the global entertainment industry saw revenue increase by 22% to $49.6 million for the year ended March 2025.
More importantly, adjusted earnings before interest, tax, depreciation and amortisation swung to a $1.1 million profit, a marked improvement from a $13.6 million loss the previous year. Operating losses also narrowed significantly to $6.5 million.
CEO Stuart Green said the company has restructured its operations to create a sustainable platform that can scale with growing order volumes.
He highlighted the launch of a new Fast Track service designed for localising live content, which is still modest in revenue but shows promising growth potential.
Despite some recent softening in dubbing demand, ZOO’s diversified services have seen three quarters of consecutive growth.
In morning trading, the stock was up 1.39p at 4.64p.