Shares in AIM-quoted technology group ZOO Digital skipped 10.5 per cent higher to 26.5p today, after the digital media production concern announced narrowed losses for the six months to September.

Operating losses at ZOO, the company behind a tool for creating interactive DVDs as well as multi-language production software for video publishers, were slashed from £2.2 million to £697,000, as turnover from ongoing businesses increased 113 per cent to £1.31 million. Chief executive Stuart Green says he is now focused ‘on the drive towards becoming profitable and cash flow positive’.

Green flagged up an eventful first six months for ZOO, in which it made ‘tremendous progress’ in deploying its tools into major Hollywood studios, and acquired Scope Seven, a Los Angeles-based provider of creative and technical services to Hollywood clients, including Warner Bros, and companies in the games and education industries, for £2.45 million.

He insists the Scope Seven deal has marked a turning point for ZOO, changing the group’s focus to the provision of digital media solutions, rather than products.

ZOO, sporting cash balances of just over £2 million at half time, is valued at £1.57 million at the current share price, comparable to 52-week highs and lows of 71.5p and 17.5p.

Save 50% off your first year’s subscription to Growth Company Investor magazine, and gain immediate access to all the recommendations online. Click here.

Zoo Digital	AIM	£2.45m	11.50p	0.00p
Click here for interactive charting
Other company articles:
Zoo Digital			07/10/2008
Losses narrow at ZOO Digital			12/12/2007
Zoo Digital			21/04/2004
Aim Report			02/12/2003
Zoo Digital			08/05/2002