Zoo Digital Group Plc
Visit Zoo Digital Group Plc
Description
ZOO Digital is a provider of digital production and distribution localisation services to the film and TV industry. ZOO Digital’s strategy is to use its innovative cloud-based software, for which it holds 30 patents, to provide differentiated services that are far superior to its competitors. The Group has developed a global collaborative network of translators, who are supported by the Group’s easy to use software and a solid team of ZOO Digital project managers. The Group currently has 3 offices globally, partners with 10 affiliates, has a network of c.3000 translators and can translate into more than 50 languages.
Our view
ZOO is targeting a very large fast-growing market with a high quality agile proposition that is scalable and efficient. Over the last few years ZOO Digital has been winning significant market share, supported by its proprietary cloud-based technology which drives quicker time to market, at a higher standard than competitors and at an attractive price point. We believe the robust market dynamics in the home entertainment market experienced over the last few years appear set to continue, which will positively underpin ZOO Digital’s prospects.
Financial Summary
Year end: March (U$m unless shown)
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Revenue | 11.5 | 11.6 | 16.5 | 28.0 | 32.1 |
| Adj EBITDA | -0.7 | 0.2 | 1.8 | 2.3 | 3.3 |
| Fully Adj PBT | -2.7 | -1.7 | -0.1 | 0.5 | 1.6 |
| Fully Adj EPS (c) | -6.6 | -2.4 | 0.4 | 0.9 | 1.8 |
Profit & Loss
Year end: March (U$m unless shown)
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Revenue | 11.5 | 11.6 | 16.5 | 28.0 | 32.1 |
| Adj EBITDA | (0.7) | 0.2 | 1.8 | 2.3 | 3.3 |
| Adj EBIT | (2.1) | (1.1) | 0.5 | 1.0 | 2.0 |
| Reported PBT | (2.1) | (1.5) | 0.5 | (0.1) | 1.5 |
| Fully Adj PBT | (2.7) | (1.7) | (0.1) | 0.5 | 1.6 |
| NOPAT | (2.0) | (0.7) | (0.9) | 1.4 | (2.0) |
| Reported EPS (c) | (6.3) | (2.4) | 2.4 | 0.2 | 2.0 |
| Fully Adj EPS (c) | (6.6) | (2.4) | 0.4 | 0.9 | 1.8 |
| Dividend per share (c) | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Cash Flow & Balance Sheet
Year end: March (U$m unless shown)
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Operating cash flow | 0.7 | (0.4) | 1.5 | (0.9) | 3.9 |
| Free Cash flow | 0.1 | (0.1) | 1.0 | (2.1) | 2.6 |
| FCF per share (c) | 0.3 | (0.3) | 3.1 | (2.8) | 3.6 |
| Acquisitions | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Disposals | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Shares issued | 0.0 | 0.0 | 0.0 | 3.0 | 0.0 |
| Net cash flow | 0.2 | (0.0) | 0.3 | 1.8 | 2.2 |
| Overdrafts / borrowings | (5.6) | (6.3) | (6.2) | (4.6) | (4.3) |
| Cash & equivalents | 0.3 | 0.3 | 0.6 | 2.4 | 4.7 |
| Net (Debt)/Cash | (5.2) | (6.0) | (5.6) | (2.2) | 0.4 |
Nav & Returns
Year end: March (U$m unless shown)
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Net asset value | 2.5 | 2.6 | 7.4 | 9.0 | 11.1 |
| NAV/share (c) | 7.7 | 7.8 | 22.7 | 12.2 | 15.1 |
| Net Tangible Asset Value | 0.4 | 1.1 | 1.0 | 1.6 | 2.2 |
| NTAV/share (c) | 1.3 | 3.3 | 3.0 | 2.1 | 2.9 |
| Average equity | 2.5 | 2.1 | 2.2 | 5.0 | 8.2 |
| Post-tax ROE (%) | (31.1%) | 36.8% | 5.2% | 29.3% | 25.5% |
Metrics
Year end: March (U$m unless shown)
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Revenue growth | 19.9% | 1.5% | 41.7% | 69.8% | 14.7% |
| Adj EBITDA growth | 78.9% | (122.7%) | 1034.0% | 29.1% | 44.9% |
| Adj EBIT growth | 0.5% | (47.5%) | (145.5%) | 95.8% | 104.3% |
| Adj PBT growth | 10.8% | (38.1%) | (94.6%) | (707.8%) | 197.2% |
| Adj EPS growth | 10730.6% | (63.9%) | (116.6%) | 125.3% | 102.2% |
| Dividend growth | N/A | N/A | N/A | N/A | N/A |
| Adj EBIT margins | (18.3%) | (9.5%) | 3.0% | 3.5% | 6.3% |