While this provider of localisation services for the entertainment industry is making evident progress, the current valuation looks detached from reality
Interim results from ZOO Digital Group (AIM:ZOO) for the six months ended 30 September 2018 were much anticipated following the update in September. While sales rose 17% to $14.9m (£11.3m), investment in support of growth saw ‘adjusted’ EBITDA fall to $0.5m from $1.8m in the comparable period – the adjustment excludes share based payments. Gross profit of $4.9m (H1 FY18: $4.8m) was apparently driven by sales mix shift to localisation and represents a rather derisory gross margin of only 33%, down on the previous 38%. The reported pre-tax loss for the period was $159k which compares with a profit of…
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