Published on: August 23, 2021

Upgrades to FY22 and FY23 estimates

ZOO reports on current trading, including the expectation that its £2.56m loan stock will be converted before the FY22E half year-end. Management notes strong business momentum, which is expected to continue as new production resumes. We upgrade our FY22E revenue to $49.5m from $46m, but choose to leave EBITDA unchanged given the ongoing investment in production talent and regional hubs. The dilution impact from the conversion was factored into our previous forecasts. We expect the current strength to continue into FY23E, and we upgrade both FY23E revenue and EBITDA. We assume that the update on trading is being provided alongside the conversion news and expect potential further newsflow in September at the time of the AGM.

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