RNS Number:7575O
Zoo Digital Group PLC
18 August 2003
For Immediate release 18 August 2003
ZOO Digital Group plc
Interim results for the six months ended 30 June 2003
ZOO Digital Group plc, the AIM listed interactive digital entertainment group,
announces interim results for the six months ended 30 June 2003.
Highlights
* Turnover increased to #1,296,000 from #274,000 in the same period year
last year.
* Loss before interest, tax, depreciation and amortisation of #(731,000)
compared with #(976,000) in the same period year last year.
* Successful share placing concluded raising #1.4m net.
* Cash balances of #1,796,000 as at 30th June 2003 (#2,162,000 as at
30th June 2002).
* Multi territory licensing agreement concluded with Universal for "Who Wants
To Be A Millionaire?" Interactive DVD game. Products for release in UK and
France in Q4 2003 delivered on time.
* Continued investment in revolutionary DVD-ExtraTM authoring system
* Four further patents filed in the UK, USA and in multi territories under
the Patent Cooperation Treaty
* Early Adopter programme for DVD-ExtraTM established with 30 companies
including Warner, Ascent Media, Technicolor and Comchoice.
* Games publishing schedule established with 24 products on GameBoy Advance,
PlayStation 2, PSOne, PC and Gamecube, being released in over 5 territories
during the second half of 2003.
Commenting on the Group's progress to date, Ian Stewart, CEO of ZOO Digital
Group plc said:
"The explosive growth in DVD has been well documented and consumer demand for
richer interactive content is something the major entertainment publishers are
keen to capitalise upon. Our proprietary DVD-ExtraTM authoring technology,
which allows the creation of far richer and more advanced interactive content
for use on standard DVD players, is being well received by third parties. There
has also been great interest from IP holders as to how DVD-Extra can extend
brands and feedback from our Early Adopters programme has been positive. "The
work we are doing with Universal Pictures for the release of the 'Who Wants To
Be A Millionaire?' Interactive DVD game in the UK and France this Christmas is
also very promising.
"The videogame publishing arm of the business is also progressing well and we
will be releasing 24 products over a number of platforms in over 5 territories
during the second half of 2003. These releases, together with the revenues
generated from DVD Extra will pave the way for solid future revenue income and
place ZOO Digital Group in a strong position for a move to profitability in the
current financial year and significant growth thereafter."
Enquiries:
Ian Stewart, Chief Executive
ZOO Digital plc Tel: 0114 241 3700
www.zoodigitalgroup.com
Alasdair Robinson
Noble and Company Limited Tel: 0131 225 9677
Paul Vann/Ken Rees
Binns & Co PR Limited Tel: 020 7786 9600
Chairman and Chief Executive's Statement
ZOO Digital Group plc ("the Group")
Introduction
The six months to 30th June, 2003 was one of significant progress for the Group.
The successful fund raising has allowed the Group to invest further in the
DVD-Extra technology and further develop its position in the video games market.
Financial Review
The Group increased sales for the six months ended 30th June 2003 to #1.29m
(2002: #0.27m) with a loss before interest, tax, depreciation and amortisation
of #0.73m (2002: loss of #0.98m). The retained loss for the period decreased to
#0.99m (2002: loss of #1.16m)
The Group's cash position was #1.80m as at 30th June 2003 compared to #2.2m as
at 30th June 2002.
Business Review
An Early Adopter Programme for DVD-Extra Studio(TM) was launched in the first part
of the year and there has been significant interest from many organisations in
joining this programme. The Group has selected 30 organisations from the film
and video industry, multimedia and education markets in order to ensure that the
first commercial release is of a high quality and includes features that meet
with customer requirements. The feedback so far is highly encouraging in terms
of the permitted applications, the stability of the software and the features
incorporated. It is clear that consumer demand for richer interactive content is
something the major entertainment publishers are keen to exploit.
An exclusive licensing agreement with Universal Pictures was signed in May 2003,
for the supply of interactive DVD games based on the 'Who Wants To Be A
Millionaire?' TV show. The UK and French products have been completed and
delivered on time and will be published during the second half. We are hoping to
be able to announce further product agreements during the second half of 2003.
Four further patents were filed during the first half in the UK, USA and in
multi territories under the Patent Cooperation Treaty. These cover technologies
related to DVD-Extra and are applications that allow DVD Video players to behave
more like multimedia PCs. They include a method to control access to DVD-Video
content thereby making the DVD more difficult to copy illegally.
We have continued to develop our portfolio of products in the video games market
and aim to publish at least 24 products on GameBoy Advance, PlayStation 2,
PSOne, PC and Gamecube in over 5 territories during the second half of 2003.
John Barnes Ian Stewart
Chairman Chief Executive Officer
Consolidated unaudited Profit and Loss account
6 months 6 months Year
ended ended ended
30-Jun-03 30-Jun-02 31-Dec-02
Unaudited Unaudited Audited
#'000 #'000 #'000
Turnover 1,296 274 1,882
Net operating expenses (excluding (2,027) (1,250) (3,756)
depreciation)
____________________________________
Loss before interest, tax, depreciation, (731) (976) (1,874)
amortisation and exceptional items
Other operating expenses
- depreciation (55) (45) (98)
- amortisation of goodwill (225) (179) (403)
____________________________________
Operating loss (1,011) (1,200) (2,375)
Investment income 16 38 35
____________________________________
Loss on ordinary activities before (995) (1,162) (2,340)
taxation
Taxation - - 134
____________________________________
Retained loss for the period (995) (1,162) (2,206)
====================================
Loss per ordinary share (0.61p) (0.8p) (1.46p)
____________________________________
Consolidated unaudited Balance Sheet
6 months 6 months Year
ended ended ended
30-Jun-03 30-Jun-02 31-Dec-02
Unaudited Unaudited Audited
#'000 #'000 #'000
Fixed Assets
Intangible 3,540 4,156 3,756
Tangible 168 234 210
Other investments 228 228 228
____________________________________
3,936 4,618 4,194
____________________________________
Current Assets
Stock 229 244 363
Debtors 905 534 1,435
Cash at bank and in hand 1,796 2,162 1,306
____________________________________
2,930 2,940 3,104
Creditors : amounts falling due within (1,760) (1,627) (2,595)
one year
____________________________________
Net current assets 1,170 1,313 509
____________________________________
Total assets less current liabilities 5,106 5,931 4,703
Creditors : amounts falling due after (757) (757) (757)
more than one year
____________________________________
Total net assets 4,349 5,174 3,946
====================================
Financed By
Share capital 435 315 315
Share premium account 13,239 11,960 11,961
Other reserves 8,598 8,598 8,598
Profit & loss account (17,923) (15,699) (16,928)
____________________________________
Equity Shareholders' Funds 4,349 5,174 3,946
====================================
Consolidated unaudited Cash Flow Statement
6 months 6 months Year
ended ended ended
30-Jun-03 30-Jun-02 31-Dec-02
Unaudited Unaudited Audited
#'000 #'000 #'000
Net cash outflow from operating (902) (886) (2,583)
activities
Returns on investment and servicing of 16 38 66
finance
Capital expenditure and financial (22) (31) (45)
investment
Acquisitions and disposals - (282) (6)
____________________________________
Net cash inflow before financing (908) (1,161) (2,568)
Financing 1,398 - 551
____________________________________
490 (1,161) (2,017)
====================================
Reconciliation of operating loss to net cash flow from operating activities
Operating loss (1,011) (1,200) (2,375)
Depreciation charge 55 45 98
Loss on disposal of fixed assets - (7) -
Decrease / (Increase) in stock 134 (244) (363)
Decrease / (Increase) in debtors 530 (390) (698)
(Decrease) / Increase in creditors (835) 731 352
Goodwill amortisation 225 179 403
____________________________________
Net cash outflow from operating (902) (886) (2,583)
activities
====================================
Analysis of changes in cash and cash
equivalents
Opening balance 1,306 3,323 3,323
Net cash inflows / (outflows) 490 (1,161) (2,017)
Closing balance 1,796 2,162 1,306
____________________________________
Analysed as follows
Cash at bank and in hand 1,796 2,162 1,306
====================================
Notes
Board Approval
The interim accounts were approved by the board of directors on 15th August,
2003
Nature of accounts
The financial information for the six months ended 30 June 2003 and 30 June 2002
is unaudited and does not constitute statutory accounts within the meaning of
Section 240 of the Companies Act 1985. The information has been prepared on the
basis of accounting policies used in the financial statements to 31 December
2002.
The financial information for the year ended 31 December 2002 is extracted from
the audited accounts for that period. The auditors' report on those accounts
was unqualified and did not contain a statement under Section 237(2) or (3) of
the Companies Act 1985.
Share issue
60,000,000 new ordinary shares of 0.2p each of the Company at a price of 2.5p
per share were placed with new institutional investors on 3rd June 2003.
The total number of ordinary shares in issue following the placing is
217,770,126
Earnings per share
Earnings per share is calculated based upon the loss on ordinary activities
after tax for each period divided by the weighted average number of shares in
issue during each period being 163,826,332 (2002: 145,432,946).
Information on fully diluted earnings per share has not been presented as the
company recorded a loss after tax in each of the relevant periods and
accordingly the exercise of options would not result in further earnings
dilution for shareholders.
Gains and losses
The company had no recognised gains or losses in the current period other than
the loss for the period.
Further Copies
Copies of this announcement and the Interim Report for the six months ended 30
June 2003 will be available, free of charge, for a period of one month from the
Company's Nominated Adviser and Broker, Noble & Company Limited, 1 Frederick's
Place, London, EC2R 8AB, Tel: 020 7367 5600 or from the registered office of the
Company at Parkhead House, 26 Carver Street, Sheffield, S1 4FS.
This information is provided by RNS
The company news service from the London Stock Exchange
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